How Blockchain Impacts You

Source: AccountingToday

Wondering about blockchain and how it will affect the world of accounting? Accounting Today recently featured an article by Antoinette Alexander explaining blockchain and its implications.

Here’s a quick overview:

What is blockchain?

• A digital ledger that keeps a record of all transactions within a peer-to-peer network.
• Users access the ledger securely and post “blocks” (aka transactions) in the database.
• Blocks are timestamped and can’t be deleted or changed after they are validated.
• A variety of blockchains exist and are being developed. They can be private or public.

What makes blockchain unique?

• Almost real-time completion of transactions, which makes it less likely that one party would not fulfill their payment obligations.
• Distributed ledger, which provides a public, secure record of transactions.
• Permanent--every transaction is verified and recorded.
• Resistant to censorship.

How does blockchain impact accounting?

• The expanded use of blockchain will further the transition of accountants from record-keepers to financial advisors.
• Auditors will need to understand blockchain transactions in order to ensure the integrity of blockchain data.
• There may be an increased need for specialization in areas such as tax or forensic accounting.
• Firms will have more accounting/IT collaboration.

How can firms be ready for blockchain and the rise of cryptocurrencies?

• Increase communication with the IT department in order to more easily implement new technology.
• Be willing to hire candidates who may not be blockchain experts, but who can readily learn.
• When you find qualified applicants who are equipped to work with blockchain/cryptocurrency, hire them quickly.

For the complete article, read “Blockchain: Unlocking New Potential.”

From Accounting Today, Dec. 3, 2019,  https://www.accountingtoday.com/news/blockchain-unlocking-new-potential.