Triple entry accounting is an enhancement to the traditional double entry system in which all accounting entries involving outside parties are cryptographically sealed by a third entry. These include purchases of inventory and supplies, sales, tax and utility payments and other expenses. Placed side by side, the bookkeeping entries of both parties to a given transaction are congruent. A seller books a debit to account for cash received, while a buyer books a credit for cash spent in the same transaction, but in separate sets of accounting records. This is where the blockchain comes in: rather than these entries occurring separately in independent sets of books, they occur in the form of a transfer between wallet addresses in the same distributed, public ledger, creating an interlocking system of enduring accounting records. Since the entries are distributed and cryptographically sealed, falsifying them in a credible way or destroying them to conceal activity is practically impossible.
The companies using triple entry bookkeeping would derive two immediate benefits from adoption: First, since auditors could quickly and easily verify a large portion of the most important data behind the financial statements, the cost and time necessary to conduct an audit would decline considerably. Audits would still be necessary, but auditors could spend more time on higher risk areas such as internal control. Second, the integrity of a company’s financial statements would be essentially unassailable. Revenue and expense transactions could not be falsified if they required the encrypted signature of the counterparty in order to be accepted as valid. In the case of Bitcoin, transactions only occur when wealth is transferred, so there is no incentive and considerable cost associated with spurious activity. Taken together, both of these effects would have a strong positive effect on stock prices, borrowing rates, and a variety of other fundamentals.
Full article: Triple Entry Bookkeeping With Bitcoin — Bitcoin Magazine
While financial use cases of blockchain technology are at the spotlight due to the significant interest of powerful parties – banks, investors, and even governments – non-financial use cases of DLT are of equally significant importance to a number of industries. Along with banks and FinTech startups, non-financial players have been paying attention and looking for ways to leverage the opportunities that DLT opens. Let’s look at some interesting examples of the applications of blockchain technology beyond financial services:
Last week, the UAE’s central bank announced it was working on a joint cryptocurrency, based on blockchain, with its counterpart in Saudi Arabia
Dubai: Since beginning its dramatic rise in value over a year ago, many commentators have pronounced bitcoin dead, saying instead that the true value of the polarising digital currency was to be found in its underlying technology, blockchain.
Cryptocurrency experts disagree, however, saying this analysis is too simplistic.
Whatever the true worth of bitcoin, in recent years it has been blockchain technology that has seen the overwhelming majority of investment from banks, governments, and large companies.
But what is blockchain, and why does everyone want to use it?
Essentially, a blockchain is like a record that is accessible to anyone; a ledger that registers every single transaction.
It can be used for a number of different things, including hospital records, financial transactions, and government data.
It is not controlled by anyone: There is no central authority such as a government or bank. Instead, everyone who uses it contributes to it in some small way.
Supporters say this kind of structure makes it more efficient and fair.
The real inventor of Blockchain, Kelce Wilson, joins Sarah Westall for an interview. He discusses the invention and his patent, the real security issues, and crypto currencies in general. An engaging discussion you haven’t heard elsewhere!
GoldMoney uses a private blockchain to deliver gold-based financial services, which have the potential to replace traditional banks, especially in the area of international payments or moving assets abroad.