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.

Currency Exchange Rates

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.

Visualization of blockchain

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/