BLOCKCHAIN AND APPLICATIONS IN ACCOUNTING

Abstract

The blockchain has been gaining more attention since 2009 when was announced by Satoshi Nakamoto to record Bitcoin transactions. Perhaps the most important part of Bitcoin's success is the blockchain technology, where records of cryptocurrency transactions are stored.

As a means of recording, the blockchain is being used in different fields with the possibility of storing data safely without the need for a central institution. It also has a significant potential for the retention of accounting records.

In the accounting system based on the blockchain technology, the distributed book that validates the records can participate in the registration process as a third party (triple-entry accounting system). In this way, instead of making separate accounting records in each enterprise, a registration system which is created with the participation and approval of all parties, ensures that transactions are recorded directly in a common registry and leaves no doubt about the accuracy and completeness of the data. Since the data is signed cryptographically and distributed to all ends; it will be almost impossible to obfuscate, falsify or destroy.

In this study, after mentioning the functioning of the blockchain, potential applications related to accounting will be discussed.