While accounting software and other platforms have evolved dramatically in complexity and sophistication, the fundamental design principles have remained that each respective transacting party maintains its own relative ecosystem and exchanges information with other stakeholders.
It is this core premise which blockchain, with its distributed ledger structure has vast potential to disrupt.
Blockchain works on a distributed ledger model which records every transaction and maintains the chronology & authenticity of the information on a secure global network which is designed to be tamper proof. The technology allows the transacting parties to interact seamlessly, eliminating record keeping activities across order-to-cash, record-to-report processes and procure-to-pay.
With this promise, blockchain has started to catch the imagination of finance and accounting executives with possibilities of transforming F&A operations similar in ways the internet revolutionized knowledge sharing collaboration.
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