TY - JOUR AU - Byström, Hans PY - 2019/04/30 Y2 - 2024/03/28 TI - Blockchains, Real-time Accounting, and the Future of Credit Risk Modeling JF - Ledger JA - ledger VL - 4 IS - 0 SE - Research Articles DO - 10.5195/ledger.2019.100 UR - https://ledger.pitt.edu/ojs/ledger/article/view/100 SP - AB - In this paper I discuss how blockchains potentially could affect the way credit risk is modeled, and how the improved trust and timing associated with blockchain-enabled real-time accounting could improve default prediction. To demonstrate the (quite substantial) effect the change would have on well-known credit risk measures, a simple case-study compares Z-scores and Merton distances to default computed using typical accounting data of today to the same risk measures computed under a hypothetical future blockchain regime. ER -