By Hitendra Patil
Accountaneur: The Entrepreneurial Accountant
Let's talk about the technology behind blockchain.
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You have accessed information from the Internet for quite a few years. Now you have started accessing information on the cloud.
The Internet gave rise to the cloud. It totally transformed the business models of accounting, tax and audit software companies.
Blockchain has the potential to kill cloud. Yes. Kill cloud. Think of it. In the accounting and tax profession, cloud essentially means you access your clients’ accounting and tax info on a remote computer, using a browser and the Internet. Cloud has also started automation and integration to enable those remote computers hosting different software to access and use data between them.
But blockchain will likely do away with the need to have this software centrally hosted at some data centers. Blockchain will use the Internet to enable smaller, individual business-level accounting and other databases to interact with those of other similar smaller (or even larger) business entities. It’s like door- to-door delivery of mail, without going through a central collection and distribution agency like the Post Office or a courier company. “Disintermediation” will be triggered by blockchain.
Tomorrow, information will access information for you, on behalf of you, the way you define it to, without the possibilities of manual errors of omissions and commissions.
Accounting life – networked. Actually, blockchained!
Identity theft will be extinct. Technology will make your digital DNA known to those with whom you do business, yet it will not be prone to impersonation. Privacy and trust will converge in this future world, in such a way that both are protected equally.
Each transaction will have its own DNA – auto-verified and confirmed by the counterparty to the transaction. It’s like your clone doing in a digital world what you did until today in the physical world!
Authentication, Analytics, Access
Cars that drive themselves. Wearable technologies that monitor health and wellness variables. The real-time ability to mine, integrate and analyze colossal volumes of information about your business and use the intelligence curated from it to deliver it when and where needed – through new generation tailored products and services – using the combination of high-speed broadband, smartphones/tablets and digital/social media will profoundly change the way accounting is done and consumed. It's always-on accounting!
Accounting systems will learn how you decide, when you are required to do what, where your payments will come from and go to, and even why you might want to consider which choices, given a business situation that you may not have even thought of.
The industry insights will not be based on what the thought leaders think of but will be derived from provable data points and trends supported by real-time information. It's predictive accounting!