Bitcoin is a pretty common understanding these days, compared to before when it was difficult to explain. Investors and regulators are focusing more attention to the architecture. The reason being is the industry showing more interest in potential applications of secure distributed ledgers, otherwise known as blockchains technology. As blockchain, bitcoin network’s for global functioning, it records information publicly, and consistently hosts the records on computers connected to the network.
Many argue that a blockchain is insecure without the host of network participants through monetary reward. Other will disagree because financial institutions can grow to endure the benefits achieved from the technology by eliminating the middlemen of information being transferred simultaneously securing the ledger. Firms want to invest in this technology because it can scale with the grow, and provide less liability in an auditing aspect. Even from an accounting perspective, using blockchain technology can eliminate the labor cost to do a majority of journal entries needed for a company’s books and records. Aside from regular updates, such as adding bills, which should still be managed and it’s very possible through smart contracts this can be added. Consider a company’s entire financial transaction could be easily produced, not needed to verify the information.
Quickbooks is a common technology companies of all sizes use. However, the need for an accounting department still has to ensure all the records are correct, even if it has been electronically downloaded. With blockchain technology, the need for reconciliations would be reduced because everything has already been verified. Of course all this is in theory right now, but that’s how inception begins.