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BLOCKCHAIN-THE FUTURE OF ACCOUNTING
Abstract
Technological advances are very much needed for the development of any nation. But at the same time, it is also very true that such developments may also threaten the basic premise of a few professions. Blockchain is a digital ledger on which transactions are recorded chronologically and can be viewed by all who have access. It allows for the transacting and securing of digital data resulting in efficiency in business transactions. It will revolutionize the financial world by radically reshaping finance, accounting and auditing professions by creating opportunities as well as challenges for these professionals. Finance executives should be made aware of the financial technology innovation, and predictions of the impact of Blockchain in the field of accounting and auditing. These professionals must treat the blockchain technology as transformative computing architecture capable of changing the entire accounting world. Accounting and auditing professionals must embrace automation because it’s good for efficiency and efficiency is good for business. The present paper aims to provide an understandable definition of Blockchain and highlights the impact of Blockchain on Accounting and Auditing Profession.
... In the context of the Fourth Industrial Revolution, technology-driven changes in accountancy organizations seem likely to trigger changes throughout firms' organizational charts. However, considering the fast pace of technological developments, this may not imply a steady evolution, nor a tranquil one (Bansal et al., 2018). The relevance of the accountancy profession (in general) and the quality of the accounting and auditing services provided (in particular) are at stake. ...
... Henceforth, blockchain-based accounting might prevent the accomplishment and concealment of improper or "creative" accounting techniques (Bansal et al., 2018;Carlin, 2019;Kwilinski, 2019;Rîndaşu, 2019;Roozen et al., 2019;Farcane and Deliu, 2020). ...
... Henceforward, BT's application in the accounting field could be advantageous to the industry, which relies mainly on standardized technologies in computer-assisted auditing processes (Bansal et al., 2018; Bons on and Bedn arov a, 2019). As the automatization and digitalization of accounting are still in their early stages, the implementation of BT may assist this process. ...
Purpose
The purpose of this paper is to facilitate blockchain innovation immersion in accountancy organizations by providing tools that allow organizations to manage the change. The paper approaches blockchain technology (BT) through the lens of organizational change management, with a specific focus at the organization level.
Design/methodology/approach
A hybrid systematic literature review of relevant literature is presented based on recent research papers published in highly ranked scientific journals that capture how accounting organizations might manage the changes induced by BT.
Findings
The findings of the review indicate that implementing BT requires some new modus operandi. From individual behavior to organizational structure, the advantages of blockchain must be emphasized in all accounting and auditing organizations. Managers should forge a plan that takes advantage of employees' skills, competencies and talent, implementing forward-looking company procedures and actively deciding how to navigate workplace dynamics, personalities and responsibilities.
Research limitations/implications
The main limitations of the study refer to the infancy of the BT and require the development of knowledge through future studies to allow a more accurate outline of the overall picture and a detailed one of the BT phenomena with applicability to accounting and auditing. At this stage, it is not yet possible to fully envision the implications of BT on professional accounting and auditing organizations. However, there will be clients who adopt BTs, so firms should work with them to understand BT-based accounting and auditing applications. That is, accounting and auditing organizations should expand their skills and knowledge to anticipate and meet clients' needs.
Practical implications
In a constantly digitalizing world, the traditional accounting and educational environment is changing but not quickly enough to meet the requirements of a blockchain accounting system yet. For this reason, practical implications on the daily activities of the organizations and the restructuration of their internal architecture have been revealed in this paper.
Originality/value
The paper approaches blockchain using the lens of organizational change management with a specific focus on the accounting and audit organizations, and it proposes solutions to cope with the arising technological challenges. A challenge itself is the implementation of blockchain, especially when an entity is not ready for the process. Therefore, the SWOT analysis elaborated in this paper and focused on the accounting and auditing firms is an element of novelty and at the same time, a helpful tool highlighting the main strengths, weaknesses, opportunities and threats of this technology, supporting organizations in assessing how ready they are for its adoption. The research on blockchain in accountancy organizations is still necessary for at least seven key areas which have been proposed and detailed at the end of the paper, bringing in this way clarity in regards to the most endorsed avenues for future research directions.
... Scientists have studied various aspects of the use of blockchain technology in accounting. For example, Bansal S. K., Batra R. Jain N. [2] and Bonson E., Bednarova M. [3] [12]. ...
Introduction. To ensure cyber protection, the company’s management resorts to isolating accounting information containing trade secrets from other information flows. However, confidential document management attracts significant attention from internal users and outsiders in order to gain unauthorized access. Due to active cyber threats, the isolation practice in the implementation of electronic information communications is ineffective for cybersecurity, which requires the development of new methods documentation and document circulation at the enterprise.The purpose of the article is to study the benefits of open document management of enterprises based on blockchain technology to abandon the isolation of information flows in order to ensure cybersecurity of enterprises.Methods. In the process of researching the disadvantages and advantages of isolation and open document management, general theotrtical( empirical, logical and historical) methods of cognition of reality are used. The research is based on scientifical methods of dislosing the economic processes, facts and phenomena from the standpoint of accounting and cybersecurity of enterprises. The information base of the article is selected historical documents on the development of blockchain technology, scientific works of scientists on block-chain structuring of accounting information, etc.Results.The fundamental principles of blockchain technology in the conditions of its use for the organization of cybersecurity of accounting information are formed. The expediency of refusing to isolate information in favor of open document management in terms of maintaining trade secrets of the enterprise is substantiated. The method of documenting and document circulation on the principles of block-chain structuring of the database, which determines the order of fragmentation and recombination of accounting information at the internal and external levels of electronic communications, is studied. The procedure for using the electronic key system to gain access to confidential accounting information in accordance with the information needs of users and their classification in the enterprise management system.Perspectives. In order to organize cybersecurity of enterprises, it is important to improve the methodology of implementation of other elements of the method of accounting in the process of automated information processing, which requires further research.
This paper provides a guidance note to accounting educators seeking to incorporate applications of blockchain technology (BT) into accounting curricula. This paper is based on review of recent blockchain related publications in the accounting domain. It explains the areas of blockchain relevant to the accounting profession and provides a list of potential topics for inclusion in the accounting curriculum. Potential academic and industry resources that can be used to develop BT materials for integration into the accounting curriculum are also outlined. Being motivated by the need for the accounting profession to update their blockchain-related awareness and skills to meet the expectations of the accounting industry, this paper will help accounting educators as a guidance note in curriculum design and developing their course materials. This paper represents a reference for accounting educators tasked with incorporating emerging technologies into the accounting curricula to prepare work-ready graduates for the rapidly changing accounting profession.
Bitcoin is attracting a steadily increasing interest since its first appearance in 2008. Bitcoin price forecasting would be of great practical interest given its role as a relatively new virtual “currency”. This presupposes the modeling and verification of some kind of relation, causal or not, connecting bitcoin price to other “established” factors of economic interest. Towards this goal, cross-correlation analysis is used in this work to investigate relations between bitcoin price and a set of other factors of economic interest. The years 2013 to 2015 are selected as the temporal basis of this research, because earlier bitcoin prices were practically zero. Results reveal a strong correlation between bitcoin and stock market indices or other economical factor values. SWOT analysis for bitcoin is carried out for the same period of time, based on cross-correlation as well as on existing research results. Bitcoin is seen to possess more benefits than risks, while its strong temporal correlations with other economic indices or prices constitute an opportunity to be further explored towards the goal of bitcoin price forecasting.
Blockchain is a decentralized transaction and data management technology developed first for Bitcoin cryptocurrency. The interest in Blockchain technology has been increasing since the idea was coined in 2008. The reason for the interest in Blockchain is its central attributes that provide security, anonymity and data integrity without any third party organization in control of the transactions, and therefore it creates interesting research areas, especially from the perspective of technical challenges and limitations. In this research, we have conducted a systematic mapping study with the goal of collecting all relevant research on Blockchain technology. Our objective is to understand the current research topics, challenges and future directions regarding Blockchain technology from the technical perspective. We have extracted 41 primary papers from scientific databases. The results show that focus in over 80% of the papers is on Bitcoin system and less than 20% deals with other Blockchain applications including e.g. smart contracts and licensing. The majority of research is focusing on revealing and improving limitations of Blockchain from privacy and security perspectives, but many of the proposed solutions lack concrete evaluation on their effectiveness. Many other Blockchain scalability related challenges including throughput and latency have been left unstudied. On the basis of this study, recommendations on future research directions are provided for researchers.
Bitcoin is a digital, decentralized, partially anonymous currency, not backed by any government or other legal entity, and not redeemable for gold or other commodity. It relies on peer-to-peer networking and cryptography to maintain its integrity. Compared to most currencies or online payment services, such as PayPal, bitcoins are highly liquid, have low transaction costs, and can be used to make micropayments. This new currency could also hold the key to allowing organizations such as Wikileaks, hated by governments, to receive donations and conduct business anonymously. Although the Bitcoin economy is flourishing, Bitcoin users are anxious about Bitcoin’s legal status. This paper examines a few relevant legal issues, such as the recent conviction of the Liberty Dollar creator, the Stamp Payments Act, and the federal securities acts.
The prospect of a world in which all text, audio, picture, and video documents are in digital form on easily modifiable media raises the issue of how to certify when a document was created or last changed. The problem is to time-stamp the data, not the medium. We propose computationally practical procedures for digital time-stamping of such documents so that it is infeasible for a user either to back-date or to forward-date his document, even with the collusion of a time-stamping service. Our procedures maintain complete privacy of the documents themselves, and require no record-keeping by the time-stamping service. Appeared, with minor editorial changes, in Journal of Cryptology, Vol. 3, No. 2, pp. 99--111, 1991. 0 Time's glory is to calm contending kings, To unmask falsehood, and bring truth to light, To stamp the seal of time in aged things, To wake the morn, and sentinel the night, To wrong the wronger till he render right. The Rape of Lucrece, l. 941 1 Introduction ...
How Safe Are Blockchains? It Depends
- A Berke
Berke, A. (2017). How Safe Are Blockchains? It Depends.
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Bitcoin.se » Finansinspektionen klassar Bitcoin som betalningsmedel
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Bitcoin som betalningsmedel. [online] Available at:
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The Future of Blockchain: APPLICATIONS AND IMPLICATIONS OF DISTRIBUTED LEDGER TECHNOLOGY
- Australia Chartard Accountnats
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Blockchain: APPLICATIONS AND IMPLICATIONS OF
DISTRIBUTED LEDGER TECHNOLOGY; Available at
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Blockchain Technology; A game-changer in accounting
- Deloitte
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Blockchain Data Integrity -Ericsson
- Ericsson
Ericsson.com. (2017). Blockchain Data Integrity -Ericsson.
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