Blockchain technology has already become known for its “immutable ledger” capabilities. It is also poised to re-invent traditional accounting.
According to Deloitte , blockchain technology will upend entire industries. This starts with the financial industry, but it won’t be the last. The reason? Accounting and clearing features used in the financial industry, particularly when blockchained, have broad applications to every other vertical not to mention business that keeps books.
The accounting business is one of the core industries in every modern economy. Around the world, there are over 1.3 million accounting firms, employing more than 6 million people and generating close to $500 billion in the U.S. in 2017.
There are several ways blockchain technology will begin to make an immediate impact. This includes the fact that the accounting industry is so far, at least, just beginning to wake up to if not implement digitalization.
When adding blockchain to the mix, the deliberately slow, mutual control mechanisms and checks and balances of modern accounting become not only faster but actually more reliable. In fact, blockchain may well be the silver bullet to ending fraud in the accounting industry. Utilizing blockchain, an Enron scandal would be much harder to pull off. And the 2008 meltdown, based in large part on massive fraud in the mortgage industry, would never happen again.
The point is blockchain is coming to accounting, whether or not accounting is coming to blockchain. And further, it does not take a great leap of faith, not to mention the direct application of technology to see how start-ups with reliable tech, a good business plan, and a strong team, could make huge inroads into underserved ecosystems quickly.
Blockchain technology, in fact, according to Deloitte, is the next iteration of the world’s second oldest profession. Instead of having to keep separate books based on invoices and receipts, transactions can be recorded in a joint register real time. This will create an interlocking system of enduring accounting records. Making sure everything totals – in two companies – is much easier. Not to mention across a distributed system of asset assignments.
Ledgerium’s ecosystem creates a convenient, decentralized and efficient way of managing accounting ledgers between any two or more parties.
The completely mobile and easy-to-use interfaces and platform feature strong security and identification verification, including biometrics. Transactions and smart contracts can be quickly created, in an environment which supports all currency and asset types and classes.
Additional features include digital authorization of files, upload and transfer of documents, management of previous transactions, and of course bank statements. User consent is required for certain kinds of transactions. Subscriptions can be automatically renewed and changed.
If accountants fear that this is precisely the kind of application that will put them out of a job, for the moment, that is actually unfounded. One of the greatest needs within the industry right now is to find better and cheaper ways for authorizations if not verifications.
Ledgerium’s platform is designed to enhance the integrity of the professionals who follow the law and allow them to do their jobs better and far more cheaply. Everything that used to have to be done manually will now be synchronized, corroborated and reconciled via the blockchain.
Once verified and authorized to participate on the platform, smart contracts can be created by either “buyers” or “sellers.” These are not necessarily buyers of goods or services, but rather those who need accounting services to track this activity. For example, a transaction could involve the request for goods, the production of an invoice, confirmation of payment and verification of delivery. At every step, requests, documents, and verification are treated as tokenized transactions that are verified, encrypted and signed using public and private key technology.
Ledgerium has been developed to provide blockchain as a service (or Baas) ledgers to clients. The system includes three major components:
Ledgerium Identity Platform: The LIP handles identification, verification and authentication. This platform serves as the foundation of the entire system.
Ledgerium File System: The LFS creates a secure, efficient file storage system for users across the Ledgerium ecosystem.
Ledgerium Blockchain: The LGM chain is both a consortium blockchain and an accounting and auditing application layer. This allows selected parties to participate in the chain. Users will have both a public and private identity.
With the purchase of system tokens, individuals to enterprises will have access to a platform which creates immediate and real advantages to the status quo.
Decentralized Ledgers: These are far superior to centralized versions because of cost to intermediate with third parties, because they create a dynamic ecosystem of asset transfer and ledger reconciliation and because they are far more accurate, complete and consistent.
Triple Entry Accounting: The Ledgerium system uses something called triple entry accounting. This is an alternative form of accounting record keeping compared to the double entry accounting. Rather than adjusting records of the same transactions in privately managed, independent databases, both parties’ sides of every transaction are recorded in a shared book.
Identity, security and privacy: Blockchains by definition, provide a level of security, identity verification and privacy that traditional methods of verification just do not match. This is because identity is controlled and verified at multiple steps along the way – from signup to access to and verification or reconciliation of documents and facts.
The team vision at Ledgerium is to provide the tools and technology to improve the industry, reform it where necessary, and reduce the work and cost of regulatory agencies.
Here are the details of the upcoming Ledgerium token sale:
Token name: LGM
Token base: ERC-20
Token supply: 35,000 ETH worth of LGM tokens
Token sale target: 40,000,000 LGM
Token sale date: Early March 2018
Token price: 1 ETH = 100,000 LGM (with discounts based on volume token purchase during the ICO)