Who Does The Blockchain Affect?

Why Use a Blockchain?

by DailyCryptoInfo 225 Views

Who Does The Blockchain Affect?

Why Use a Blockchain?

by DailyCryptoInfo 225 Views

When the internet was invented, most of those living at the time were oblivious to data being streamed across copper and optical cables around the world (lets not forget satellite and radio as well). Email before the email you know today, was extremely complex. There was FIDOnet, BITnet, CompuServe, GE’s network, DECNet, etc. sending email from one network to another was seemingly difficult and in many cases impossible. Everyone employed their own formats. It was later when the RFC822 for Email was introduced, the SMTP or Simple Mail Transfer Protocol was invented, unifying email with the beloved @ symbol.

Today, we all use email without giving it a second thought. Same can be said of streaming audio and video, and literally 1000s of other technologies.

Some prominent ones are Transitioning from Roman Numerals to Hindu-Arab Numerals, Double-Entry Bookkeeping, and the Joint Stock Company. They had monumental effect on us.

Chances are all three of the latter elements defined above affect you in some manner. If you work for US Dollars or your currency of choice, you are utilizing Double-Entry Bookkeeping. If you’re counting 1,2,3,4,5,…. you are utilizing the Hindu-Arabic numerical system and if you’re working for a company, you guessed it. Joint Stock Company.

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In isolation at the time of their invention so to speak, you would have laughed at them. The thought of these inventions being applicable and serviceable to you, would have seemed alien and outlandish.

Yet, here we are today.

Now, the Blockchain

Pundits who are gifted in looking at things and figuring out its impact have many names. Some are called forward looking historians, futurists, visionary, etc. But one thing they are good at is looking at something and discerning its impact for the future generations.

We have come a very long way from what we were just a 100 years ago.

Some Affects that the blockchain will have are:

1. Improved Efficiency

Well-designed blockchains are fast and powerful databases. Getting data into and out of the system can be done more efficiently than interacting with legacy accounting software applications.

2. Reduced Cost

An increase in efficiency and reduction in errors in any system translates into reduced cost. Following initial adoption cost, accounting firms can expect to see rapid cost savings over conventional accounting systems.

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3. Reduced Fraud

The immutability of blockchains make it extremely difficult to perpetrate fraud using such a platform. In order to modify a record, the same change would have to be made on all copies of the distributed ledger at the same time, which is highly infeasible.

5. Improved Regulatory Compliance

The improved security offered by DLT can greatly simplify the burden of an agency to satisfy regulatory demands. As more regulatory authorities embrace blockchain technology, DLT adoption might become mandatory in certain crucial financial sectors.

6. Reduced Auditing

One aspect of DLT that accountants should be excited about is its ability to reduce audits. Through the power of smart contracts, many auditing functions can be automated, reducing the time an auditor needs to spend looking at records.

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