Blockchain technology has the potential to reduce transaction errors and enhance the quality of reporting significantly. This article proposes a conceptual blockchain-based protocol, labelled Smart Ledger, as a replacement for the traditional accounting information recording system. A smart ledger is a computerized algorithm that utilizes blockchain technology to perform accounting ledger functions. Its validity is based on two mechanisms within the blockchain architecture: Fractional Accounting Transactions (FAT) and Hierarchical Accounting Transaction Execution (HATE). As such, the smart ledger is a hybrid protocol that combines accounting information recording principles with the immutability of blockchain technology. If widely implemented, it could have a significant impact on accounting practices and the accounting profession.
- accounting information
- fractional accounting transaction
- hierarchical accounting transaction execution
- smart ledger
ASJC Scopus subject areas
- Economics, Econometrics and Finance (all)