NASDAQ said in 2015 that blockchain technology was being used in its initial safety operation. Since then, blockchain technology used in FinTech has swept the globe and become more and more popular all over the world.
A business or organisation usually uses an accounting information system (AIS), which is typically designed as a centralised platform, to collect, maintain, control, and reveal its financial data so that auditors, accounting professionals, executives, legislators, and taxing organisations can use it. To assure the highest level of accuracy in a company's financial transactions and record-keeping, as well as to make financial data easily accessible to those who legitimately need access to it, all while keeping data intact and secure, blockchain could work closely with AIS.
Blockchain as a decentralised public ledger can record the ownership, origin and movement of financial data. The widespread use of smart contracts and distributed ledger technology will significantly contribute to improving the security and productivity of the financial industry.
FinTech accounts for the largest share of the blockchain market. Some researchers reviewed the uses of smart contracts and distributed ledger technology (DLT) in FinTech and guided the direction of financial solutions. They gave a thorough analysis of the most pertinent blockchain-based FinTech solutions as well as a breakdown of FinTech industries and segments in their survey. For each portion, they included an explanation and an evaluation of how each blockchain implementation helped investigators and FinTech companies solve the vast majority of their challenges. In this system, blockchain was a neutral intermediary responsible for distributing the data, automating storage, and verifying the process. Moreover, it could serve as a secure platform for accounting that did not allow for tampering or irregular accounting practises. The blockchain could record monetary exchanges between two parties, such as bill payments and bank deposits. Thus, the role of accountants might change into one of verifying ledger transactions.
Another study focused on the application of blockchain in accounting practise and research to find areas that might benefit from further research as well as to create a framework for how blockchain affects accounting processes. Blockchain had a wide range of effects on accounting practise and study. The reasons why practitioners were engaged in this technology, including triple-entry accounting system, the inalterability of operations, the mechanisation of repetitive work that did not require voluntary choices, the recognition of cryptocurrencies in accounting records, value-chain management, and social and ecological auditing.
The key conclusions with regard to the auditing and accounting processes were that immutability on the blockchain was undoubtedly beneficial for auditors and accountants and could help prevent fraudulent activity and ensure the accuracy of data and information. The capacity to execute genuine accounting and uninterrupted auditing, the potential for testing a complete database rather than a sample, the decrease of mistakes, and the removal of the requirement for balance are just a few of the benefits that could come from blockchain technology. With third entries maintained on a chain, triple-entry accounting was another potential use, despite certain concerns about privacy and visibility that needed to be addressed.
It was predicted that blockchain developments would have a substantial impact on accountants, auditors, and legislators, especially when it came to processes linked to the methods in which trades were originated, conducted, documented, balanced, audited, and published. Blockchain could play a rather significant role in the fields of ecological and social accounting and monitoring, even though it could not entirely replace the functions of auditors and insurance premiums.
Accordingly, the FinTech industry has learned how innovative blockchain can be for boosting revenue, improving the terminal experience, optimising the supply chain, improving efficiency, and reducing company risk. Blockchain for AIS will achieve critical mass in adoption during the next several years and become widely used in the future.
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