The previous post presented the contention that what is called "Following the Money" is more accurately following the Accounts that money passes through. Accounts are the primary entity and each account is a fixed record that is established with a unique identifier for its period of existence. Every account is maintained by and Accounting Activity. That activity is a bank in the Federal Reserve System or Central Bank of any specific country.
Customer accounts are a uniquely identified fixed record Parent Object each with multiple entity data elements Children Objects. Each of those Children Objects change to various degrees of rapidity. The Account itself can change. It can either created into existence or it can be extinguished. On Hand Balance in the Account is a variable number of money value units. That amount can change with variable rapidity.
The related source of change to any Account On Hand Balance has an identity. Normally another different uniquely identified Account. Changes in On Hand Balance from Account to Account are what are followed in tracing the source Account in an audit trail back to the original source. That source is a money unit of value either created out of nothing by a bank loan into a customer account
OR:
Deposit of cash by customer into their Account.
In either case that is where Following the Account trail in an audit trail ends. Other means must then be used to trace currency money unrelated to an account. Currency is tracking is difficult due to its anonymous nature. Currency is unrelated to any direct identifier as to ownership unlike Accounts ownership of the On Hand Value.
That is the situation when Account is the fixed record and the On Hand Balance of any given Account is a Child Object of that Account with a variable rate of change in unit value.
Restructure the Monetary System model with this Paradigm Shift:
Create a model where Digital Currency can be selected and viewed as a fixed record and the Account to which the Digital Currency is related is variable. Make currency a fixed unchanging object and Account Ownership variable.
This adds a new way of audit tracing in the digital monetary system while retaining the established way of tracing based on viewing Account as the fixed record and digital currency in the account being the variable related by transactions to all past fixed Account records.
This system structure design requires that each and every single basic granular unit of digital currency value be uniquely identified in its own universe of all Digital Currency. Each unit of currency is the Parent Object of an Owning Account Child Object.
This establishes the simple ability to change which of either Account or Currency Unit is the Parent or Child object in the relationship. Making the Unit of Currency the Parent establishes a true ability to "Follow the Money" by actually following the changes in its relationship of a fixed Unit of Currency record to a variable Account Object.
A whole new world of Accounting methods and Accountability Information opens up with this change in Monetary System Design.
This search question becomes possible: Tell me every past specific Account that ever owned this specific unit of Digital Currency with a fixed value of One Dollar. (Small change system dealing with less than One Dollar generally not worth tracing and subject to its own decimal related conceptual design structure).
System rule: Every Account has a identified Owner. Owners are uniquely identified by their required attributes. One of those is a link to a Beneficial Owner that is a Human Being or aggregates of Human Beings authorized to spend money from the account thru secure state of the art biometric identification.
Following the Money where Digital Currency is the fixed record and Account is the variable record is really following the Money! Not following it indirectly by its association to an account where Account is the fixed record and aggregates of related Digital Currency is the variable related to Transactions.
Blockchain transactions are the digital currency of a blockchain digital currency system. I have explained this in prior blog entries. It is a strange hybrid currency where the transaction identifiers are "owned" as currency in the Owners Account but in aggregate take on a "Fixed Record" nature to the extent that they are all provable. In my view, current Blockchain currency systems based on the cornerstone of Transactions being "Currency Money" are halfway to ultimate evolution (revolution) of Uniquely Identified Units of Monetary Value each with a Unit Value = One becoming the cornerstone foundation.
The final evolution of the Monetary System would be structured on the interaction of three Primary Foundation Object Entities
Unit of Value
Transaction
Account
The system design could be managed and viewed from any level of designating any entity as fixed and examining its relationship to variables. Each would have its own blockchain.
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