The Evolution of Accounting Techniques
Triple-Entry Accounting
Double entry accounting is the basic principle of the accounting system used by all companies and organisations. It is based on the idea that an organisation’s transactions and financial position can be represented by accounts. Each account contains the history of changes in the monetary value of a particular aspect of the organisation. Double-entry is when the posting record is recorded in at least two accounts: a debit account, and a credit account.
Bitcoin allows for greater transparency because anyone can access the blockchain and observe every transaction that takes place. When a transaction takes place, the whole world witnesses it. This is an accounting revolution: Bitcoin makes possible the first implementation of triple-entry accounting, which allows all third parties to have confidence in the veracity of a company’s accounts.
