blockchain – I Teach Accounting Information Systems

Think your crypto is secure?

Nomad is the latest cryptocurrency trading firm to be hit with a significant theft of its crypto assets. Last week they announced a $190 million theft of their digital assets. Nomad is not alone. In a report by blockchain analytics firm, Chainalysis, over $1.7 billion of cryptocurrency was stolen this year through May.

Hand with image of bitcoin — Photo by Worldspectrum on Pexels.com

There is a false sense of security regarding safeguarding crypto assets as they reside on the blockchain, which has long been touted as secure. Although the blockchain is relatively secure, many software applications automate the trading of cryptocurrencies. These applications are the weak spot for many blockchain operations. This opens the door for hackers to steal large amounts of assets without leaving a trace.

For more on the Nomad theft, see the article at: https://www.reuters.com/technology/us-crypto-firm-nomad-hit-by-190-million-theft-2022-08-02/

Blockchain in Accounting – Hype or not?

Not that long ago it seemed that blockchain was everywhere. The hype of blockchain as a cure-all was quite prevalent, including a commentary in the Wall Street Journal commenting how blockhain can end poverty. See article.

However, it seems that much of the hype has died for the moment as practitioners find ways to utilize blockchain when it makes the most sense, rather than implementing blockchain for the sake of using blockchain.

A recent podcast with the Journal of Accountancy discusses where the accounting industry is at this time for using blockchain. To view the article and associated podcast, go to: https://www.journalofaccountancy.com/podcast/blockchain-accounting.html

In my opinion, the use of blockchain was over hyped at first. Now that the dust has settled, accountants can find ways to use it to increase reliability of transactions and speed up some processing.

Think Cryptocurrency is safe? Think again.

“In 2019 alone, an estimated $4.26 billion in cryptocurrencies was lost due to hacks, cybertheft, scams, misappropriation or insider fraud, up about 250% from 2018.” Fraudsters have upped efforts to attack cryptocurrencies in recent years.

Fraudsters are using schemes such as: embezzlement, Ponzi schemes, phishing and ransomware.

Unlike other frauds, if a person loses cryptocurrency, there is no recourse or way to recover it.

For how forensic accountants can help, go to: https://blog.aicpa.org/2020/05/cyber-criminals-are-finding-ways-to-steal-your-digital-dollars.html#sthash.Sv5ebunY.dpbs

Are you teaching Blockchain?

For those of us discussing blockchain in our accounting courses, it can sometimes be difficult for students to visualize how the blockchain works.

I recently used this game in my business analytics and emerging technologies course for upper level accounting students. The feedback was great! Students commented that it helped them visualize the blockchain even more.

https://www.instructables.com/id/The-Blockchain-Game/