The purpose of this project is to research the cutting-edge technology available in the market place and propose a practical use of it in Accounting Information System. The technology may be currently in use in a limited capacity or may be a future concept. Students are expected to use books, articles, internet, and any other available sources to collect information to do this project. Each source must be properly sited.
Project topic: Blockchain technology
- Its use in a particular business cycle (This is my part)
Brief explanation:
Blockchain technology is poised to change the accounting game — and it can help you stand out if you know how to use it.
In simple terms, blockchain is the distribution and decentralization of database technology. It can protect encrypted data and maintain an expanding list of transactions among all parties involved. Especially in the financial sector, blockchain technology has the potential to transform entire industries.
Accounting is currently based on a double-entry bookkeeping system in which the accountant and independent auditor input and verify a company’s financial information. With blockchain technology, there’s no longer a need for this kind of redundancy, since the data are verified without another party. It’s a complete, automated digital audit of each individual transaction.
It’s widely understood that when multiple parties are involved in a transaction, they tend to keep their own records. This process is inefficient and time-consuming, and there are often issues with reconciling differences between records.
Blockchain uses modern encryption methods to allow companies to use a common data retention infrastructure. That means it allows both sides of a transaction to be recorded at the same time in a shared ledger, even as each accountant, auditor, and the company maintains a privately managed database.
