When you first heard about blockchain technology, it was probably in the context of Bitcoin. There’s no denying that the cryptocurrency explosion of the past few years brought blockchain into the mainstream, but authenticating new currencies is just the tip of the iceberg when it comes to potential accounting applications for this radical, disruptive technology.
Blockchain is on every accountant’s mind because the technology aligns so seamlessly with our profession. In essence, blockchain presents the possibility of a new type of accounting ledger — one that can be continuously updated and verified without the threat of being altered or corrupted. “The internet gave us a powerful ways to share and access information,” says Ron Quaranta, chairman of the Wall Street Blockchain Alliance. “Blockchain now gives us a powerful way to share and access value.” Real estate and auto industry leaders are using it to track assets and the price at which they were bought and sold.