Why do the 'Big Four Auditors' favor Bitcoin and blockchain so much?

Blockchain applications are set to see further growth in India as tech giant Microsoft enters into a new partnership with KPMG, one of the ‘Big Four’ audit firms.

Microsoft and KPMG have reportedly entered into a new strategic partnership, and the two companies' collaboration will focus on the digitalization of large and medium-sized Internet of Things companies in India.

Through this collaboration, Microsoft and KPMG’s Indian clients will be able to deploy cloud-based automation, IoT-driven business insights and analytics, and enhanced workforce mobility for companies, among other things.

Additionally, KPMG India clients will soon be able to enjoy the benefits of blockchain technology exclusively, bringing the expertise through Microsoft Azure cloud platform Blockchain as a Service (BaaS).

Rachan Nath, Head of Digital Advisory at KPMG India, said in a statement:

“This collaboration will help clients drive productivity and better performance and help them transform their businesses. KPMG India will also expand services across the entire Microsoft Productivity Tools (PT), Intelligent Cloud, Blockchain Technology and Cybersecurity business lines.”

Microsoft has been public about its efforts to engage, develop and deliver blockchain solutions, with a number of recent collaborations, including one with Australian hotel and online travel company Webjet to create a proof-of-concept ledger.

At the same time, India's position in the global information technology services industry is driving the country to become a viable blockchain development center. There are already signs that India's largest IT services company Tata Consultancy Services (TCS) recently revealed that they are developing more than 100 blockchain pilot projects and proof of concepts for clients. Foreign companies are also actively investing in blockchain development in India. For example, Visa, the world's largest payment network, has announced plans to set up a blockchain development center in Bangalore, India's main IT center.

Why do the four audit giants favor blockchain so much?

The world’s largest service companies are arguably all pushing to offer blockchain solutions to their clients, offering a cheaper, more efficient and faster alternative to existing infrastructure.

Deloitte

Deloitte is a notable example of a company that is investing heavily in Bitcoin and blockchain technology. Its internal team Rubix is ​​focused on developing blockchain applications, and Deloitte Canada recently installed a Bitcoin ATM in its Toronto office.

Illiana Oris Valiente, co-founder and head of strategy at Rubix Team, explained:

“We think it’s really important to show people how to get Bitcoin because it’s the entry point to understanding the broader impact of blockchain.”

Deloitte also explained how blockchain could transform industries including healthcare, financial services and infrastructure and even loyalty programs, including a successful blockchain proof-of-concept trial for transaction reporting conducted in partnership with the Bank of Ireland.

Recently, Deloitte and London blockchain startup SETL reached their first blockchain investment plan. About a month ago, Deloitte and SETL announced their cooperation to develop a contactless card that uses blockchain technology for transaction settlement.

PricewaterhouseCoopers (PwC)

PricewaterhouseCoopers (PwC) is also involved in blockchain development, including a partnership with Bitcoin blockchain startup Blockstream. The services giant also has a partnership with New York blockchain startup Digital Asset. In March 2016, PwC released a report that identified blockchain as a "once-in-a-lifetime" opportunity to achieve a technological leap in the financial services industry.

Ernst & Young (EY)

Meanwhile, the last of the ‘Big Four’, Ernst & Young (EY), recently formed a partnership with well-known Bitcoin mining company Bitfury Group to provide blockchain services by leveraging the latter’s expertise.

In addition, Ernst & Young Switzerland has announced that they will accept Bitcoin as a payment method for services from 2017. This plan shows Ernst & Young's recognition of Bitcoin, the underlying technology of Bitcoin is the most powerful public blockchain.