What is Blockchain?
Blockchain differs from standard databases and spreadsheets in that it holds and presents information in blocks which are chained together. When an information block is filled, another block is created for new information. The blocks are linked together and the information stored is permanent, meaning that vital data such as dates cannot be edited.
Another way in which blockchain stands out from traditional databases is the way in which it is owned. Standard databases and spreadsheets are typically entrusted to only one user or network of computers for editing and input. Blockchain allows for ownership across a network of computers in different geological locations. These computers work together to maintain correct data. For example, if incorrect information is inputted in one computer, other computers in the network can work across each other to determine the computer from which the information was entered.
Blockchain has increased security with its ability to prevent past information from being altered and its linear presentation of information. It is easy to keep information from being lost.
What role does blockchain play in accounting?
Benefits for Accounting Professionals
Blockchain is a powerful tool for those in the accounting industry. It has potential to be a better fit for professionals than traditional databases and spreadsheets. Benefits of blockchain for accountants include:
- Reliable information about an asset’s history. The permanent nature of a blockchain’s data means that accountants can be more certain when reviewing an asset’s history.
- Fewer expenses. Blockchain can reduce database maintenance expenses.
- Fewer resources spent on bookkeeping and reconciliation. The money, time, and efforts saved can be used for other endeavors and services.
The Future of Accounting with Blockchain
As blockchain continues to evolve in the future, it may become a standard in the accounting industry. Blockchain allows professionals to save resources and gather information securely and efficiently. Prepare yourself now by researching blockchain, experimenting with blockchain databases, and continuing to follow the latest cryptocurrency and blockchain news.
If you’re ready to learn more about blockchain and cryptocurrency, connect with our team of experts today. Call us at 732-257-8604 or visit our website to get started.
