Accountants And Blockchain?

What Should We Know (and Prepare For)?

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Strategic Finance Mag — July 2018

“Here Are 10 Industries Blockchain Is Likely To Disrupt”

The following is from Bernard Marr (LinkedIn profile)

“ In simplest terms, blockchain refers to a decentralized database. If you think of a traditional database like a spreadsheet, running on a single computer, blockchain distributes that so the spreadsheet runs on millions and millions of computers.”

“The real disruption here is that trust is established through collaboration and code, rather than a central authority. So you no longer need a bank to make a money transfer around the world. You no longer need an escrow account to buy a home, or a real estate agent to facilitate the transaction.”

The industries mentioned do not refer to accounting, but clearly, it will ultimately have ramifications on our industry.

“Here’s What You Really Need to Know About Blockchain”

“Still, — and very contrary to the current hype — very few of us will ever work with a blockchain or even know it is there. The real revolution will come not from the technology itself, but from its secondary effects in the form of new business models.”

Greg’s analogy to relational databases was especially helpful for me.

“With relational databases, however, all you need to know is the query language and you can extract what you need from any database, no matter who set it up. That’s why today, we can hop on a system like the Internet and pull data from just about anywhere we want. It’s what made the information age possible.”

Very few accountants actually understand relational database structures or work with them in any great detail. However, we all use them and pull information from them everyday.

“The most salient aspect of blockchain is that it functions as a distributed database. Unlike relational databases that house data in one location, blockchain distributes data everywhere at once in a secure form. So we can track data wherever it goes, what it’s used for and see who alters it in any way. That will create a radically more transparent information economy.”

Accountants LIVE in the “information economy”, so we better be getting ready!

“Blockchain and Crypto Courses Explode In 2018”

Michael K. Spencer posted this Medium article which provides a insight to the explosion of interest in blockchain.

“Even Mary Meeker presented something on this. Former Wall Street analyst Mary Meeker’s well-known annual Internet Trends report for 2018, published May 30, shows interest in cryptocurrency “exploding” since January of last year.”

Don Note — The Mary Meeker report is great reading every year!

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Mary Meeker 2018 “Internet Trends Report” Slide

Wrap Up

Clearly, blockchain and it’s ramifications on many industries, including accounting, is a big deal!

About Don

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“It’s time for DIFFERENT”

Don is passionate about helping professionals and organizations keep up, develop and adapt to the changing business world that we operate in.

Connect with Don!

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It’s time for DIFFERENT— On a mission to challenge the status quo to a more productive and effective end… #digital #Excel #data #analytics

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