Blockchain Hash, the Missing Axis of the Accounts to Settle the Triple Entry Bookkeeping System

Alessio Faccia, Narcisa Roxana Moşteanu, Luigi Pio Leonardo Cavaliere

Research output: Chapter in Book/Report/Conference proceedingConference proceedingpeer-review

Abstract

The bookkeeping accounting method recognized all over the world is based on the so-called double entry, with which in each account (defined T-Account for its shape) there are two sections, Debit and Credit. These two sections take on different meanings depending on the nature of each account. The double entry is an exceptional consolidated accounting method that dates back to the fifteenth century, however it has highlighted limits in terms of auditing. The single entry did not take into account the cross relations between the accounts, reporting only on the journal. The double entry has overcome this limit by introducing the ledger, but a cross-check of the mirrored transactions recorded by the other companies is still missing. The introduction of blockchain technology could now offer a new opportunity to ensure further auditing control. The transition from double entry to triple entry is therefore only a matter of time. The blockchain itself is borrowing the word "ledger"from accounting and now it is time for accounting to introduce a third leg (another axis) to the T-Accounts, that can be turned into a new X-shaped version of accounts. This third axis can be used to include the unique identifier of each transaction represented by the Hash.

Original languageEnglish
Title of host publicationICIME 2020: Proceedings of the 2020 12th International Conference on Information Management and Engineering
Publisher Association for Computing Machinery
Pages18-23
Number of pages6
ISBN (Electronic)9781450387521
DOIs
Publication statusPublished - 16 Sep 2020
Externally publishedYes
Event12th International Conference on Information Management and Engineering - Virtual, Online, Netherlands
Duration: 16 Sep 202018 Sep 2020
Conference number: 12
http://www.icime.org/

Publication series

NamePervasiveHealth: Pervasive Computing Technologies for Healthcare
ISSN (Print)2153-1633

Conference

Conference12th International Conference on Information Management and Engineering
Abbreviated titleICIME 2020
CountryNetherlands
CityVirtual, Online
Period16/09/2018/09/20
Internet address

Keywords

  • accounting
  • blockchain
  • bookkeeping
  • shared ledger
  • Triple Entry

ASJC Scopus subject areas

  • Human-Computer Interaction
  • Computer Networks and Communications
  • Computer Vision and Pattern Recognition
  • Software

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