OPTIMIZING DATA INTEGRITY AND CONSISTENCY IN DISTRIBUTED FINANCIAL REPORTING SYSTEMS: A COMPARATIVE ANALYSIS OF MODERN STORAGE TECHNIQUES

Abstract

Implementing multiple reporting sites is another trend that is logical to increase in the financial industry due to the need for instant access to financial information across multiple locations.Yet, there is one crucial issue that needs to be addressed: guaranteeing data consistency across distributed systems is very burdensome because of specific problems related to distributed databases and communication protocols.The topic of this paper is the comparison of the contemporary approaches to storage, with a specific emphasis on the methods that would enhance data integrity and coherency in distributed systems utilized at companies for financial reporting.The discussed techniques include the conventional and modern forms of databases such as relational, NoSQL, Distributed Ledger Technology (DLT), and cloud storage solutions.In this paper, the author reviews the literature and compares and contrasts the benefits and shortcomings of each storage method.Other factors include Transaction Management, Latency, Availability, and Fault tolerances, which are also assessed.In addition, the paper describes the method by which these storage techniques can be deployed in a distributed financial reporting environment.Moreover, the findings of this study point toward the fact that the proposal of the integration of both basic elements of relational databases, as well as of DLT, offers the most durable solution to applied issues of distributed financial reporting.Last, of all, the recommendations of this paper are presented as useful for those financial institutions that use the distributed reporting system and intend to achieve maximum efficiency in further practices, such as choosing the right type of storage depending on certain parameters of operation.