Blockchain technology and decentralized governance

The Evolution of Accounting in the Internet Era

The way things are done changes constantly in the internet era. Similarly, accounting is evolving, and essential elements like ledgers are now maintained electronically. One technique for keeping ledgers private and free from outside interference is the blockchain. Unquestionably among the most brilliant inventions, the blockchain has altered and developed over time into something more important than the original. Fundamentally, this technology functions in a manner that permits information distribution rather than copying. This method makes it possible to operate quickly and securely with digital currencies. With the current trend in technology and the fact that some of the online transaction methods such as bitcoin have popped up, this technique is now used more than ever. One thing making this type of technology spread faster is the fact that one does not have to know how it works to utilize it (Ballabio and Gerardo). It only needs some necessary information in its operation. After knowing how to use it, the user will understand why it is becoming a game changer in the financial sector. Even though many businesses have adopted the use of this technology to make their businesses lucrative, many entrepreneurs in the current times find it hard to integrate it into businesses.

Challenges in Integrating Blockchain Technology

Evidently, there is a wide assortment of reasons that make small business owners unable to integrate this type of ledger and information storage media into their businesses. However, this does not mean that this kind of technology does not improve the performance of the company as well as the security of the transactions. In the study above, (Underwood and Sarah 15) states that blockchain enhances the transaction recording of any business using it. This is because there would not be any possibility of changing the information housed in the information system unless the change is done on all computers in the network. Due to the fact that many users monitor the blockchain, it is often hard to hack or even compromise (Hegadekatti, Kartik and Yatish 2016). This system is hard to shut down because the transactions cannot be reversed, the operations are secure and allow whatever the spec of activity is going on therein to be viewed and verified by just any individual permitted to view it.

Privacy Concerns and Other Limitations

Because of the security in making transactions, it appealed to companies offering financial services. However putting this type of technology into a good use is one of the most daunting tasks. One of the reasons why putting this technology into use is hard is the fact that many bankers require privacy and implementing such technologies as part and parcels of their businesses would compromise the privacy needed by the client (Crosby and Michael 7). There are other stumbling blocks in the course of adopting these technologies because it is a shared system that is used to execute transactions. This shortcoming allows rival companies to even spy on one another, something that might lead to detrimental impacts on security of the client’s financial information (Trautman and Lawrence 2016). Many businesses are doubtful when it comes to implementing this system because it is immutable. Many individuals would be devastated by this feature when they are not able to reverse a wrong transaction due to a zero that was added accidentally. In some instances, illegal operations that are not reversible might make companies make huge losses (Ballabio and Gerardo). Even though the system comes with many disadvantages, some of the individuals attest that such technologies could lure many companies offering financial services into implementing it because they are quick to reduce their cost of operation (Mattila, Timo and Jan Holmström).

Works Cited

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