Chapter 6 — Web3, blockchain and cryptoasset security: operational workflow

Lesson map

Lesson 06 published. Map, example, EX026.

flowchart TD
  N0["Learning outcomes"]
  N1["6.1 Defining the workflow"]
  N2["6.2 Verification at each step"]
  N3["6.3 Roles and timing"]
  N4["Synthesis"]
  N0 --> N1 --> N2 --> N3 --> N4
  N4 --> EX["Worked example"]
  EX --> Q["Exercise EX026"]

Logical drawing

flowchart LR
  N0["Learning outcomes"]
  N1["6.1 Defining the workflow"]
  N2["6.2 Verification at each step"]
  N3["6.3 Roles and timing"]
  N4["Synthesis"]
  N0 --> N1 --> N2 --> N3 --> N4 --> Q["EX026"]

[Learning outcomes]
    |
    v
[6.1 Defining the workflow]
    |
    v
[6.2 Verification at each step]
    |
    v
[6.3 Roles and timing]
    |
    v
[Synthesis]
    |
    v
[Worked example] --> [Exercise EX026]

Learning outcomes

You will (1) define the monthly conversion workflow; (2) build verification into each step; (3) document roles and timing.

6.1 Defining the workflow

Marcus documents the monthly conversion workflow with the finance lead. Step one: reconcile the month's donations. Step two: prepare a transfer proposal to the exchange deposit address on the allow-list. Step three: two signers independently verify the destination and amount on their signing devices against the written request. Step four: execute the transfer and record the transaction reference. Step five: confirm the exchange credited the amount and the bank received the converted funds. Writing the workflow down replaces memory with a shared procedure that new staff can follow.

6.2 Verification at each step

Each step has a check. Reconciliation must be complete before a proposal is created. The destination must match the allow-listed exchange address, which was verified once by a small test transfer and is stored in the procedure. Signers compare the first and last characters of the address on their device with the written request, and the amount with the reconciliation total. After execution, the finance lead confirms the exchange credit. Verification at each step means an error in one step is likely to be caught before funds move irreversibly.

6.3 Roles and timing

The workflow names roles and timing: the finance team prepares by the third working day, signers approve within two working days, and the finance lead confirms receipt within five. A signer cannot also prepare the proposal they approve. If a signer is unavailable, the trustee steps in. Marcus adds the workflow to the charity's finance manual and schedules a yearly review. Clear roles and timing prevent rushed approvals at month end, which Ms Holm notes are a common source of mistakes in any payment process.

Worked example

Marcus documents a five-step conversion workflow with allow-listed destinations, device-based address checks and separate preparers and signers.

Synthetic case. The workflow is synthetic.

Errors and limits

Rushed month-end approvals without set timing invite payment mistakes.

Exercises

• EX026 — Workflow first step. What is the first workflow step?
  Show marking criteria

  Rubric: 3 = reconcile the month's donations;; 2 = reconciliation;; 1 = transfer;; 0 = none.
• EX027 — Destination control. How is the destination controlled?
  Show marking criteria

  Rubric: 3 = allow-listed exchange address verified by a test transfer;; 2 = allow-list;; 1 = typed fresh;; 0 = none.
• EX028 — Signer check. What do signers compare on their devices?
  Show marking criteria

  Rubric: 3 = address characters and amount against the request;; 2 = address and amount;; 1 = colours;; 0 = none.
• EX029 — Duty separation. What may a signer not do?
  Show marking criteria

  Rubric: 3 = prepare the proposal they approve;; 2 = self-approve;; 1 = sign;; 0 = none.
• EX030 — Timing rule. By when must signers approve?
  Show marking criteria

  Rubric: 3 = within two working days;; 2 = two days;; 1 = same hour;; 0 = none.

Synthesis

A written workflow with checks, roles and timing makes conversions safe and repeatable.

Continue studying — chapter 06 of 12

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