Dai, J. & Vasarhelyi, M.A XXXXXXXXXXToward Blockchain-Based Accounting and Assurance. Journal of Information Systems Vol. 31 No. 3, p5-21, Database: Ebscohost It involves studying this article...

Running Head: FINANCIAL ACCOUNTING         1
FINANCIAL ACCOUNTING        6
FINANCIAL ACCOUNTING
Table of Contents
1) Three Phases of Blockchain Technology    3
2) Triple Entry Accounting    4
3) Arguments made by the Author    5
4) Potential Issues with Blockchain Technology    6
References    8
1) Three Phases of Blockchain Technology
In the modern times, block chain technology has been changed the financial ecosystem. Across the globe, the technology seems to have been adopted. There are few issues with the technology as well. Each information of a financial event can be stored in the form of blocks. It is highly transparent due to which there is a chance of leak of data, which is a major issue in the modern times.
As noted by Dai and Vasarhelyi (2017), phases of block chain technology include Bitcoin and Cryptocu
ency, Ethereum and Smart Contracts and Web .0. The block chain technology has developed over the years and the beginning of blockchain was the Bitcoin. It is stills considered by some that; blockchain is best suited for crypto cu
encies. Bitcoin has proved to be an effective store of value in the past. It is under continuous development.
The second phase of blockchain was Ethereum and Smart contracts (McCallig, Ro
& Rohde, 2019). It was introduced with the idea that web design could aim to foster creativity. Bitcoin is refe
ed to as digital gold whereas Ethereum is refe
ed to as the digital oil. As noted by Schmitz and Leoni (2019), arguments have been made that Web 2.0 has essentially distu
ed political economies by allowing users to place undue value on their opinions. There have been criticisms with the block chain technology due to data privacy and other similar issues. Although it helps an organisation in getting away with the issues of frauds and manipulation of accounts due to third party dependence for verification of entries.
The third phase of the blockchain is the Web 3.0. It expected to deliver on micro formats, data mining, natural language search, artificial intelligence and others. It involves a secure platform where there is enough privacy. According to Kokina, Mancha and Pachamanova (2017), blockchain technology might be able to provide an open, immutable, and decentralized platform to power future transactions and applications on the internet. The third phase is supposed to resolve all the data privacy issues along with reducing the cost involved in using the blockchain technology. The technology has developed over the period and development of the same is expected over the period.
The fourth stage of block chain technology can be the acceptance of the same. Not everyone accepts the technology until date. However, with the advancement of technology all the glitch and issues will be solved, which will lead to acceptance of the same by everyone. Every revolution has to pass through three stages until all accept the same.
2) Triple Entry Accounting
Triple entry system of accounting is an advanced version of double entry system of system. In case of double entry system of accounting, the entries are posted and verified by the same personnel. As commented by Watson (2017), although there is a check of the books of accounts by third party auditor, there are chances of e
ors, which hamper the credibility of the transactions. In case of block chain technology, there a third party verifies entries. Each transactions are verified by third party, which reduces the chances of e
ors and manipulations.
However, the data is exposed to a third party, which reduces the data privacy. In the modern times, data is highly valuable as the whole world is driven by data. There are higher chances of cyber-attacks due to involvement of third party. On the other hand, the chances of manipulation are reduced by a great extent. The system records all the information regarding the transaction between business parties and data flows within the organisation. The system creates a record for every transaction in the block chain ledger, which leads to an interlocking system of accounting records.
The accounts in the blockchain...