## 8 Implementation and Discussion
### Discussion
The BFS system employs a dynamic validation mechanism, where transactions are recorded instantaneously in accounting journals and can be validated in real time as they are processed through the accounting cycle. This ensures that stakeholders have access to the most current and accurate financial data, facilitating immediate insight into the entity's financial activities and status. By embedding blockchain traceability within each entry, the BFS system provides a tamper-proof record of all financial activities. This feature guarantees the integrity of financial records and supports the system's role in enhancing transparency in financial reporting. Implementation of Financial StatementsThe BFS architecture's alignment with the domain-specific requirements of accounting demonstrates its capability to generate accurate and real-time financial reports. This enables the following:  
* **Real-Time Auditing and Verification with Privacy Preservation**: A notable innovation within the BFS framework is the report entry structure within the financial statements. Similar to the ledger entries, it diverges from traditional accounting practices by offering a more detailed view of the accounts in financial reports. Leveraging the data tractability framework of Corda, the BFS system ensures that each transaction contributing to the final balances within the report entries of the balance sheet can be continuously tracked, providing a level of traceability and verification for every record. By enabling this direct link back to the source of each transactional record, the BFS system sets a precedent for future financial reporting standards, potentially revolutionising the landscape of financial auditing and validation in the blockchain era. * **Balancing Privacy with Accountability**: In addition to the source hashes, the report entries include a mapping of the encrypted identities of the participants in these transactions within the report entry data. The inclusion of mapping the transactional hashes and encrypted identities reinforces the BFS system's commitment to accountability while facilitating privacy preservation for individual participants through encryption. This innovation in financial reporting enables real-time transaction validation and offers a framework for balancing privacy with accountability, ultimately contributing to the construction of a more transparent, secure, and resilient financial ecosystem. _Business Transaction Smart Contracts_. The BFS system adapts smart contracts to automate key business transactions, each embodying distinct aspects of business interactions between participants in the BFS ecosystem. These transactions, from share settlements to asset acquisitions and liquidity management, demonstrate the BFS system's capability to align with traditional financial processes while leveraging blockchain's inherent benefits of security, transparency, and efficiency. _Accounting Transaction Smart Contracts_. The implementation of accounting processes via a novel smart contract design within the BFS system marks a significant advancement in the integration of blockchain technology with conventional accounting processes. This innovative approach facilitates the automation of accounting steps, bridging the gap between the execution of financial activities and their representation within accounting records.