Block-chain Technology in Accounting - IT Write Up

Running Head: IT Write Up
0
IT Write Up
Block chain Technology
(Student Details: )
9/12/2019

IT Write Up
1
Contents
IT Write Up: Block-chain Technology in Accounting..............................................................2
Introduction................................................................................................................................2
Block-chain Technology............................................................................................................2
Block-chain Technology in Accounting....................................................................................3
Current State of Accounting...................................................................................................3
Blockchain Technology in accounting industry.....................................................................4
Analysis......................................................................................................................................4
How BT is helpful to Accounts..............................................................................................4
Examples of big accounting firms using BT..........................................................................5
Problems or Challenges of the new technology.....................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

IT Write Up
2
IT Write Up: Block-chain Technology in Accounting
Introduction
This discussion is based on concrete research on novel technology i.e. block-chain
technology (BT). The research is going to study the concept of blockchain technology while
explaining it in detail. In this context, with the help of this report it will be explored how the
new advancement in technology be helpful to accounts. Apart from this, while discussing
positive points this report will also discuss the barriers, problems, and challenges raised due
to this new technology. In general, BT is having the potential to revolutionize the whole
accounts industry. Besides, BT has the capability to evolve every industry of the world. It is
worth knowing that BT has already ignited curiosity all across the global sectors and
industries as well, especially in accounting or finance sector. In today's era, the BT is being
called the future of financial services infrastructure. In this way, this paper is going to analyse
and conclude the question that how BT has dominated the accounting sector while embracing
chosen technology within a bid to democratize global markets.
Block-chain Technology
In the context of accounts, BT offers clarity over the ownership of assets as well as the
presence of responsibilities and thereby it could typically advance efficiency of the whole
sector. The blockchain technology was first introduced being the core technology with the
help of Bitcoin in 2008. In this way, the concept of blockchain technology can be explained
as its use of peer-to-peer network technology while combining with cryptography.
Subsequently, such combination allows different parties that do not know each other for
conducting transactions. The BT is important and trending because it does not require a
conventional trusted middle element like a bank or payment processing link. In this way, BT
is highly capable to provide novel opportunities for reducing transaction costs effectively
while also decreasing transaction settlement-time. This is because BT has eliminated the
intermediary which is the best way to harness the power of peer-to-peer networks in this
digital era. Thus, BT can transform or disrupt a multitude of industries, all along from
accounting services to the public sector. In the end, big number of venture capital firms, as

IT Write Up
3
well as great enterprises, is looking for investing in BT research and trials for re-imagining
conventional business models.
Block-chain Technology in Accounting
From the definition perspective, technically blockchain can be defined as a back-end database
which can be inspected freely. Apart from this, in the business context, block-chain can be
explained as an exchange network in order to move transactions, assets, value among peers in
the absence of intermediaries. In addition to that, from a legal perspective, BT validates
transactions while replacing trusted entities of the past. Now, this discussion is going to study
how BT is going to create a novel world for accounting industry.
Current State of Accounting
As we know that automation in business is essential as it unlocks countless opportunities. In
this context, when there is a task that is still being performed manually, then it will definitely
extend costing to companies’ time. Thus, for achieving their daily targets the modern
industries like accounting, relies on mutual checks, control-mechanisms, as well as
balances. It can be said that using automation affects everyday operations for today’s
accounting companies. In this way, current state of accounting firms is driven through
modern financial accounting which is typically based upon a double-entry system. Here,
double-entry system significantly solved the problem of modern managers. However, for
gaining the trust of outsiders, the public auditors need to verify every firm’s financial info
and data.