Blockchain Technology in Accounting
Blockchain makes a decentralized record of all exchanges where all records are upgraded and open to everybody in real-time. It records and verifies transactions without any trusted central authority. The technology itself exists as a file that maintains a continuously growing list of ordered records called blocks. Each block contains a timestamp and a link to a previous block using a “fingerprint”. Blockchains are resistant to modification of data and cannot be altered retroactively. Here are some key points to consider about the impact blockchain technology will have on the future of accounting . Smart Contracts With the security of blockchain technology, smart contracts that automatically process invoices, bank balances, and other accounts are also made possible with absolute transparency. Consolidated Bookkeeping Rather than keeping multiple records, companies can log off their transactions into a joint registry. Standardization in Auditing Since blockchain create...