Blockchain for financial accounting companies

1. blockchain is a new application mode of distributed data storage, point-to-point transmission, consensus mechanism, encryption algorithm and other computer technologies. Blockchain is essentially a decentralized database
for example, if you are a woman, every time your boyfriend says something disgusting to you or promises to buy something for you, you immediately record it and send it to you and all his friends, classmates, colleagues, as well as various groups and circles of friends, so that he can no longer resist. This is called blockchain
the core advantage of blockchain technology is decentralization, which can realize point-to-point transaction, coordination and cooperation based on decentralized credit in a distributed system without mutual trust by means of data encryption, time stamp, distributed consensus and economic incentive, so as to solve the high cost and low cost of centralized institutions Low efficiency and data storage insecurity provide solutions
the application fields of blockchain include digital currency, token, finance, anti-counterfeiting traceability, privacy protection, supply chain, entertainment, etc. with the popularity of blockchain and bitcoin, many related top domain names have been registered, which has a great impact on the domain name instry.

2. Of course, this is OK
first of all, blockchain is actually a centralized database or a decentralized database, and all technical units are for better maintenance of the public database. Each node keeps a of data independently. Consensus algorithm is used to achieve the data consistency of the node's account book, and cryptographic algorithm is used to ensure the data can not be tampered, and the data can not be tampered and the security of data sending and receiving; Through the script system, the expression scope of account data is expanded
secondly, financial sharing center involves a large amount of financial data. We can combine the technical characteristics of blockchain with Financial Sharing Center. Next, I will combine the technical characteristics of blockchain with Financial Sharing Center
① distributed storage is a distributed database of the blockchain, and each node keeps a of the data independently. If this is combined with the Financial Sharing Center, The users who can join the "financial data on the chain" in the financial sharing chain are equivalent to the "nodes" in the blockchain network, and each user can keep a of the financial data separately, so as to achieve the purpose of sharing
② tampering is not allowed. A very important feature of blockchain technology is that the data cannot be tampered, To ensure the security of a data in the Financial Sharing Center, we need to consider the security as long as the financial data is involved.
of course, before doing the Financial Sharing Center, you must determine your specific needs, if necessary, first write a framework of the whole project, and then find a formal blockchain development team according to the needs, To help you develop this "Financial Sharing Center", we must pay attention to that before formal cooperation is reached, don't disclose the information of your project casually, in order to prevent the same kind from being copied.

3. 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.

4. 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.

5. Blockchain is a decentralized distributed record book and a credit data system. Its advantages are obvious
1. What the Internet changes is the acquisition and transmission of information, while what blockchain does is the transmission of value
for example, on the Internet, we can easily and quickly generate information and it to any place. All information can be spread efficiently, but some valuable information that can only be transferred but cannot be shared often needs credit endorsement
for example, we can't the payment directly to the other party, but we need to subtract some money from the payment account and add some money to the collection account to complete the payment process. The current Internet protocol does not support the function of value transfer. The current value transfer is not direct transmission. Instead, it is endorsed by a centralized third party, such as Alipay, such as banks.
now these centralized organizations put all the calculation of value transfer in a centralized server, which will certainly involve the participation of people, which will cause many problems, such as some "finite theory" and "opportunistic behavior", which will make the whole behavior less credible. So there is a basic question, how to reach a credit consensus
this is how blockchain technology came into being. It can be said that blockchain can build a pure point-to-point value transfer system. Without the mutual trust of each node, blockchain can ensure the integrity and security of data records in the system, and can be separated from the endorsement of third-party organizations, effectively recing the complexity and risk of transactions
2. It is open and transparent, and can not be tampered with
all data of the blockchain can not be tampered with or deleted, and the information of the whole system is open and transparent. If someone owes you a sum of money, and now the data has been put on the blockchain, if he doesn't want to return it to you and play a rogue with you, you can go to the court to protect your rights through the data forensics on the blockchain, so as to get back your legitimate funds. Because the data on the blockchain is open to the whole network, the users of the whole network will know his rogue behavior, which will greatly increase his credit cost. Dishonesty will make him have an important impact in the next life.

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.

7. From my understanding, blockchain is a kind of "consensus" implementation technology. Through blockchain, all transactions between the Internet can be recorded, which can be witnessed by users of blockchain to achieve "consensus", and the information content on the chain "cannot be tampered with". This "non tamperability" increases the cost of malicious tampering through the existence of multiple copies in the system. In the case of bitcoin, all the highlights in the figure below represent a consistent set of books. Therefore, when all the records are publicized, the problem of "two tables are not measurable" in real life is solved. The reason why the two tables can't be measured is that there is no center and the values of the two tables are different. But the center is not necessary. When there are multiple tables, and the majority pointer points to a time, the minority is subordinate to the majority, the viewer will know. Therefore, a problem to be solved by blockchain is that "the minority is subordinate to the majority". The existence of the minority may be the error of data generation or malicious tampering content. That is to say, if you want to tamper successfully, you must change 51% of the copies in the system [that is, 51% attacks], from a few to a majority. It can be imagined that the cost of tampering is huge in terms of technical difficulty, time consumption and personnel use. At the same time, another key combination of blockchain is the combination with smart contract. Because the former has achieved the "original" of the contract content, the latter has become the "Observer" to execute the contract by machine, which has eliminated the breach of contract and interruption of execution. From the earliest payment to the high development of financial derivatives, financial activities are all behind the signing and execution of contracts. At the same time, the vast majority of financial innovation is to ensure the implementation of the contract and default payment. If the signing of the contract becomes flat and implemented, the whole process will be more concise and efficient, which is a premise that blockchain will be valued by the financial sector.

8. MD5? That is to check the integrity of BT files, authenticity, must have seeds to be able to download