The impact of blockchain technology on Accounting

1. With the emergence of cryptocurrencies such as bitcoin, this time tested financial framework is likely to be changed. With the power of blockchain and the rise of this new data based currency, the whole concept of money has been reversed. Although our current understanding of money has changed over the past few decades, thanks to credit cards and fiat money, cryptocurrency is the logical next step in this evolution
this is understandable for accountants, but what does it mean for entrepreneurs? Well, anyone interested in starting or maintaining a successful business will need a competent accounting team. With the change of financial environment, the experience and insight that business accountants need will also change. Understanding this coming paradigm shift can better help entrepreneurs prove their organization in the future, and may even help them save money on business expenses related to accounting
overview of bitcoin modern accounting
the current financial paradigm regards bitcoin, Ethernet and all other cryptocurrencies as assets. In the United States, for example, any form of cryptocurrency is considered property, not money. Although the IRS recognizes that bitcoin can be used as a "medium of exchange", bitcoin is not classified as currency because it usually has the function of "unit of account and value storage space"
as a result of this classification, changes in the value and quantity of cryptocurrencies are taxed as capital gains or losses. mining or buying a lot of bitcoin will lead to capital increase, which will make bitcoin subject to capital gains tax. The same is true for trading or selling cryptocurrency, as these events are treated as taxable capital gains and losses. Therefore, the accounting treatment of the holding amount of the comparative currency or other high-end stocks is roughly the same as that of other forms of equity (such as real estate or stocks)
forecast of bitcoin and accounting in the future
e to the legitimacy of blockchain and cryptocurrency in the financial sector, the accounting nature of bitcoin and other advanced currencies will also change. Although many potential changes are too far away to be accurately predicted, one aspect of accounting is bound to change dramatically, which will inevitably affect all entrepreneurs and business organizations. This aspect refers to audit
here's how blockchain and cryptocurrency are used to brutally disrupt the audit process, and what it means for companies that employ auditors? Because bitcoin is currently classified as the property that must pay capital gains tax, the audit method of its value is called immediate forensics analysis. However, the immediate verifiability of blockchain technology makes this audit method obsolete

when you track these changes and developments, please discuss with your organization's accountant or financial advisor. They can help you understand the further meaning of these events; In some cases, they can even show you what actions you can take to deal with these events, so as to increase your profits, rece your costs, and open up a new development path for your enterprise
on the other hand, if your accountants and auditors are at a loss about your research, consider updating your finance team.

2. Blockchain is a technical solution to collectively maintain a reliable database through centralization and distrust. This technical solution allows any number of nodes in the participating system to calculate and record all the information exchange data in the system in a period of time to a data block through cryptography algorithm, and generate the fingerprint of the data block for linking the next data block and checking. All participating nodes in the system jointly determine whether the record is true
blockchain can improve the way of data recording in audit. In the current network audit, although there is an early warning mechanism, it still needs auditors to judge and handle the abnormal records manually; Blockchain can automatically process the abnormal records through whether each node verifies and approves the block and the transaction information in it, whether the network node is attacked, and whether the account book of each node is complete, so as to make real-time audit possible. Auditors can directly access and query the effective information on the blockchain, judge whether the processing is reasonable and make corrections. In the blockchain, timestamps are used to record various transactions and operations, which can achieve historical traceability and tracking, and greatly improve the quality and efficiency of audit
blockchain can change the storage mode of audit data. In traditional audit, data are stored in an audit center server, which not only has the problems of high load and slow running speed, but also is vulnerable to attack; The blockchain audit system is a typical distributed storage, each node has the same backup, which can not only save the high cost and maintenance costs of the server, but also ensure the integrity of the data
semi public private chain can be used for audit. Blockchain can be divided into three forms: public chain, semi open private chain and full private chain. Considering the characteristics of audit instry, it is appropriate to adopt semi open private chain mode. For the audited units and enterprises, some trade secret information is not disclosed, but the pre selected nodes within the group decide the generation of the block. External suppliers can participate in the transaction but not the accounting process. Externally, it provides a third-party query node to query through the open API. In this way, it can not only ensure the internal privacy of the enterprise, but also enable the external auditors to implement real-time audit query.

3. 1. Blockchain in the field of payment: the cost of reconciliation, clearing and settlement between financial institutions, especially cross-border financial institutions, is high, and many manual processes are involved; The application of blockchain technology can rece the cost of reconciliation and dispute resolution between financial institutions, significantly improve the efficiency of the payment field, and make it easier for financial institutions to handle small cross-border payment business, which is concive to the realization of inclusive financial business
2. In the field of clearing and settlement: different financial institutions have different infrastructure structures and business processes, involving many manual processes, which greatly increases business costs and is prone to errors. The application of blockchain technology, combined with the assets on the chain mentioned in the second point, can complete the point-to-point real-time clearing and settlement, so as to rece the cost of value transfer, shorten the time, improve efficiency, and both sides of the transaction can obtain good privacy protection
3. In the field of asset management, equity, bonds, bills and other assets are entrusted by different intermediaries, which increases the transaction cost of assets and brings the problem of forged vouchers. With the application of blockchain technology, this kind of assets can be digitized into digital assets on the chain. With the characteristics of irreversibility, non tampering and openness of blockchain, the efficiency of asset transaction can be improved and the cost of asset management can be reced
as the characteristics of blockchain are irreversible and tamperable, information security, point-to-point transaction transmission and decentralization make information reliable and traceable; In order to rece intermediate costs and improve efficiency, it is not only used in accounting and auditing, but also can be applied to all walks of life. Now we can see the mode of blockchain cooperation operation from behind the operation of all walks of life. Therefore, blockchain will widely and profoundly change the way of human life, so the whole life service will enter the era of blockchain. In the process of Internet development, blockchain + physical instry, blockchain e-commerce and blockchain community operation can be applied to blockchain technology.

4. The lowest one should have the accounting qualification certificate, then the junior accounting title, that is, assistant accountant (with accounting certificate, you can take the exam), accounting and primary economic law. The third one is the intermediate accounting title, that is, intermediate accountant (graated from junior college with five years of working experience, four years of undergraate working experience, and three years of postgraate with primary accounting title)

5. Chongqing jinwowo analyzes the impact of blockchain technology on the instry: blockchain will determine the relationship between people and all the Internet including artificial intelligence. The change of this relationship will have a subversive impact on the mainstream Internet business model and create a new era of decentralization.

6. Blockchain technology is to use computers to solve some propositions that can't be calculated by human brain. Generally, these propositions can't be judged by backstepping. They can only be tested one by one, so this is our legendary mining. So the stronger the computing power of the computer, the easier it is to try to get the right number, which means that we have succeeded in mining
this is totally different from the operations in accounting. Most of the operations in accounting are floating-point operations, which are totally different.