« Public Company Quality Continues to Improve, 13 Generators above 80% | Main | Is Digital Financial Reporting About to Cross the Chasm? »

Triple-Entry Accounting System

This is interesting, triple-entry accounting system. That is part of ConsenSys' vision. Not sure what they mean by "triple-entry".  Double-entry relates to balancing debits and credits.

Ethereum is hard to explain.  ConsenSys explains the four pillers of etherium here. Ethereum uses the same sort of technology as bitcoin, blockchainWikipedia provides this explanation of ethereum:

Ethereum is a cryptocurrency platform and Turing-complete programming framework intended to allow a network of peers to administer their own stateful user-created smart contracts in the absence of central authority.

Read this blog post and you will understand why "Turing-complete" is important.

InterPlanetary File System is basically a distributed file system.  Watch the demo here.

XBRL, well, read this blog if you want more information. Clearly XBRL Global Ledger will be a part of the "XBRL" piece of the puzzle. What they don't mention is the US GAAP and IFRS Financial Reporting XBRL taxonomies. Other taxonomies will likely be important, such as other reporting schemes, tax basis information, etc.  And, of course, when information goes into the digital triple-entry accounting system, you will want to get some of the information out in the form of a structured digital financial report, not old fashioned unstructured reports.

Here is another paper on triple-entry accounting.

Posted on Monday, November 30, 2015 at 04:15PM by Registered CommenterCharlie in | CommentsPost a Comment

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
All HTML will be escaped. Hyperlinks will be created for URLs automatically.