Blockchain is a type of distributed ledger technology where transactions are recorded with an immutable cryptographic signature called a hash. This means if one block in one chain was changed, it would be immediately apparent it had been tampered with.
For accountants, blockchain could mean significantly reduced reconciliation work, near real-time financial information, and increased accuracy, leading to a shift in how accountants add value to a business.
Blocks on the blockchain are made up of digital pieces of information. They store information about transactions like the date, time, and dollar amount of your most recent purchase. They also store information about who is participating in transactions.
A decentralized system means the information is not stored by one single entity. Everyone on the network owns the information.
Blockchain technology will change the way accountants generate and verify transactions and balances. This could make the accounting function leaner and more efficient.