block chain technology create impact in the field of accounting by enabling a peer to peer transaction through network

1. RECENT TRENDS IN
ACCOUNTING-BLOCK CHAIN
JIBIN T VARGHESE

2. WHAT IS BLOCK CHAIN?
A blockchain is a Open database that is shared across a network of computers. Once
record has been added to the chain it is very difficult to change and it uses
To ensure all the copies of the database are the same, the network makes constant
checks. Blockchains have been used to underpin cyber-currencies like bitcoin,but many
other possible uses are emerging.
MISCONCEPTION:
BLOCK CHAIN ≠BITCOIN
Blockchain is platform on which Bitcoin operates

3. DEFINITION OF BLOCKCHAIN
TECHNICALLY:
Block chain is back ended database that maintain a distributed ledger That can be inspected openly
BUSINESS WISE:
Block chain is exchange network used for recording transaction, values and assets between peers
without the assistance of intermediaries

4. ADVANTAGE OF BLOCK CHAIN.
• Transparency
As already stated block chain is open back ended database ,That means other users or
developers have the opportunity to see what all are happening in between them.
• Reduced transaction costs
Blockchain allows peer-to-peer and business-to-business transactions to be completed
without the need for a third party, which is often a bank. Reduces transaction cost.
• Faster transaction settlements
Blockchain technology is working 24 hours a day, seven days a week, meaning blockchain-
based transactions process considerably more quickly.
• Decentralization
Another central reason blockchain is so exciting is its lack of a central data hub. Instead of
running a massive data center and verifying transactions through that hub, blockchain
actually allows individual transactions to have their own proof of validity and the
authorization to enforce those constraint.

5. HOW IT WORKS?
STEP 1:TRANSACTION
TRADE IS RECORDED IN NETWORK AND CONTAIN ALL THE DETAILS
DIGITAL SIGNATURE.
STEP 2:VERIFICATION
THE RECORD IS CHECKED BY THE NETWORK. THE COMPUTERS IN THE
NETWORK, CALLED 'NODES', CHECK THE DETAILS OF THE TRADE TO MAKE
IT IS VALID.
STEP 3:BLOCKS
THE RECORDS THAT THE NETWORK ACCEPTED ARE ADDED TO A BLOCK.
BLOCK CONTAINS A UNIQUE CODE CALLED A HASH. IT ALSO CONTAINS THE
HASH OF THE PREVIOUS BLOCK IN THE CHAIN. THE BLOCK IS ADDED TO THE
BLOCKCHAIN. THE HASH CODES CONNECT THE BLOCKS TOGETHER IN A
SPECIFIC ORDER.
STEP 4:EXECUTION
TRADE GET EXECUTED AND VALUES WERE EXCHANGED.

6. BLOCKCHAIN & ACCOUNTING
Blockchain has the potential to enhance the accounting profession
• By reducing the costs of maintaining and reconciling ledgers,
• Providing absolute certainty over the ownership and history of assets.
• Blockchain could help accountants gain clarity over the available resources and
obligations of their organisations.
• Free up resources to concentrate on planning and valuation, rather than
recordkeeping.
Accountants will not need to be engineers with detailed knowledge of how blockchain
works. But they will need to know how to advise on blockchain adoption and consider
the impact of blockchain on their businesses and clients. They also need to be able to
as the bridge, having informed conversations with both technologists and business
stakeholders. Accountants’ skills will need to expand to include an understanding of
principle features and functions of blockchain.

7. LIMITATION OF BLOCKCHAIN:
 UNCERTAIN REGULATORY STATUS
 COST
 SECURITY
 LARGE ENERGY CONSUMPTION

8. THANK YOU