What is Blockchain?
According to Blockchain for Dummies, “Blockchain is a shared, unchanging ledger that simplifies the process of recording transactions and tracking assets across a business network. An asset can be real (a house, a car, cash) or vague (intellectual property, patent, copyright, branding). A blockchain network can track and trade virtually anything valuable, minimizing risk and reducing costs for everyone involved. “
There are different ways to create blockchain networks. They can be public, where anyone can join, private, where an organization operates the network, licensed, where participants need an invitation or permission to join, or created by a consortium and is maintained.
The possibility of Blockchain
Blockchain is an accounting technology. It deals with the transfer of ownership of assets and the maintenance of proper financial information. The accounting profession is broadly concerned with the measurement and communication of financial information, and with the analysis of the information mentioned. Most occupations relate to determining or measuring property rights and obligations, or planning how best financial resources can be allocated. For bookkeepers, utilizing blockchain gives lucidity about the presence of resource proprietorship and obligation and can significantly further develop effectiveness.
Above all, blockchain has the potential to improve the accounting profession by reducing the cost of laser maintenance. And reconciliation and providing complete assurance of asset ownership and history. Blockchain can help accountants free up resources to gain clarity about the resources and obligations available to their organization and to focus on planning and evaluation rather than keeping records.
With other automation trends like machine learning, blockchain will do more transaction-level accounting – but not by accountants. All things considered, effective bookkeepers will be the individuals who assess the real monetary translation of the blockchain record, wedding the record to financial reality and valuation.
Blockchain is the replacement of bookkeeping and reunion work. This could jeopardize the work of accountants in those areas, while adding to the power of those focusing on pricing elsewhere. Appropriate work in consolidation and acquisition, for example, allows more time to be spent on law and consultation distributed over key figures and for an overall faster process.
Five predictions for the Blockchain Future
While the future of blockchain is exciting, new innovations are constantly entering the market with the promise of greater and bolder use of technology. As active blockchain networks lead to real transformative change in many industries, the IBM blockchain team predicts the following five trends in the near future:
1. Realistic governance model will create soon
In 2022, they will begin to see new governance models that will enable large and diverse consortiums to make decision-making, approval schemes and even payments more efficiently. These models will help to capture data from different sources and capture new and more powerful data sets. Moreover, the next one to three years, a measurable governance model will be seen for 85% of CTOs and CIOs to interact across multiple blockchain networks to become an important feature of their organization’s blockchain environment.2. Interconnection comes one step closer to reality.
2. Interconnection comes one step closer to reality
Although reaching the highest level of interconnection may be many years away. And the definition of interoperability may take many form. We find that today 83% of companies believe in the certainty of governance and standards that allow interoperability and interdependence between licensed and unlicensed blockchain networks. More than one-fifth believe it is essential to join an industry-wide blockchain network. While there is still work to be done on this front, with more emerging networks gaining critical weight this year. Above all, we will see more members of a single network expect guidance on integration between different protocols.
3. Integrate AdSense technology with blockchain to take it to the next level
The integration of technology with blockchain will help us do something that not done before. More reliable data from blockchain will better inform and strengthen the underlying algorithms. Blockchain will help secure that data and audit every step of the decision-making process, enabling sharp insights driven by data that network participants trust.
4. Validation tools will start fight against fraudulent data sources
With the need for higher data protection systems, this year blockchain solutions will use legitimacy tools. Including crypto-anchors, IoT beacons and Oracle. A process that integrates digital resources into the physical world through external data injection into networks. This will improve confidence and eliminate reliance on human data entry, which is often prone to errors and fraud.
5. Central banks will expand into wholesale and retail central bank digital currencies (CBDCs)
As countries in Asia, the Middle East and the Caribbean begin experimenting with CBDCs in real time. There is no doubt that they will continue to gain momentum in the new year. And redefine payments in a variety of ways. For one, CBDCs will see a steady expansion in wholesale CDBCs, with some initial campaigns in retail CBDCs. In addition, we see interest in the tokenization and digitization of other types of assets and securities. Such as central bond debentures for treasury bonds.
Note: Information about the future of blockchain is promising and do your own research.