Topics blockchain technology – blockchain application in the field of accounting in vietnam product blockchain

Introduction...41.Blockchain technology offers several key features that contribute to its uniqueness and disruption:...41.1.An example of a version of blockchain commonly referred to as

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DISCUSSION PAPER

INTRODUCTION TO ACCOUNTING AND FINANCIAL

ANALYSIS OF ACCOUNTING

TOPICS BLOCKCHAIN TECHNOLOGY – BLOCKCHAIN APPLICATION IN THE

FIELD OF ACCOUNTING IN VIETNAM

Product: Blockchain

Instructor:

Student Group: Group 4

Class Module: 24100EAUD0217E

PROJECT TEAM MEMBERS

1 Pham Quang Thang

(Leader-0961962602)

21K690039

6 Hoang Thi Phuong Dung 21K630136

Table of Contents

I Introduction 4

1 Blockchain technology offers several key features that contribute to its uniqueness and disruption: 4

1.1 An example of a version of blockchain commonly referred to as Blockchain 2.0 is Ethereum 5

1.2 An example of a version of blockchain commonly known as Blockchain 3.0 is EOS (Enterprise Operating System) 6

1.3 Distributed Ledger Technology (DLT) offers several key features that distinguish it from traditional centralized systems These features include decentralization, transparency, security, immutability, and efficiency 7

II The influence of Blockchain technology in the field of accounting 8

2.1 State the concept, characteristics, and an example of tripartite accounting 8

2.1.1 The concept of tripartite accounting 8

2.1.2 Features of tripartite accounting 8

2.1.3 Examples of Blockchain technology in triple accounting 8

2.2 State the concept, characteristics, and 1 example of Blockchain operating mechanism in accounting 9

2.2.1 The concept of blockchain technology 9

2.2.2 Features of blockchain technology 9

III The influence of Blockchain technology in the field of accounting 11

3.1 Updating technology for accountants 12

3.2 Building a Blockchain application company (Give examples) 12

3.3 Blockchain application on accounting software 13

IV Conclusion, limitations, and publication: 14

Summary

In the context of the stormy development of the current 4.0 technology revolution, Blockchain is considered by researchers as a spearhead technology and has a great influence

on many fields, including the field of accounting Blockchain technology promises to bring many benefits but also contains many risks Blockchain can also be used to build more complex applications such as smart contracts, where the terms of the contract are executed automatically based on pre-programmed conditions To keep up with the advancements of the times, it is essential to learn about Blockchain technology and its applications Blockchain is an important and breakthrough technology that brings security, safety, and transparency to transactions and information sharing between parties without relying on intermediaries The article studies Blockchain technology and its application in the field of accounting in Vietnam

I Introduction

Blockchain has been and is being appreciated for its potential to significantly influence accounting and auditing methods by improving transparency, safety, and efficiency in financial reporting and verification processes Blockchain helps to increase transparency in the accounting field by creating an immutable ledger and at the same time allowing this information to be viewed by the stakeholders This technology ensures that all financial information recorded on the Blockchain is clear and public, reducing the risk of fraud or manipulation

The Blockchain system also provides security and immutability in storing accounting data Blockchain uses cryptographic algorithms to protect the data in each block of information Once a transaction or information is added to the blockchain, it becomes very difficult to change without consensus from the network members This enhances the reliability and accuracy of financial information

1 Blockchain technology offers several key features that contribute to its uniqueness and disruption:

Decentralized: Blockchain operates on a distributed network of computers or nodes, eliminating the need for a central authority This decentralization ensures that no single entity has complete control over the system, enhancing transparency and reducing the risk of fraud

- Transparency: All transactions recorded on the blockchain are visible to all network participants This transparency enables real-time access to trusted information, enhancing accountability and trust among stakeholders

Security: Blockchain uses advanced encryption techniques to secure data Once a transaction

is recorded on the blockchain, it is nearly impossible to change or delete, ensuring the

Immutability: When a transaction is added to the blockchain, it becomes part of the historical record that cannot be changed This feature ensures that records are not tampered with and can be relied upon for inspection, compliance, and dispute resolution

Efficiency and automation: Smart contracts, self-executing agreements with predefined rules, automate processes and eliminate the need for intermediaries This increases efficiency while reducing the costs and human errors associated with manual interventions

Traceability: Blockchain enables tracking and tracing of assets or goods throughout their lifecycle Each transaction is linked to the previous one, creating an auditable trail that enhances supply chain management and prevents counterfeiting or fraud

Together these features make blockchain technology highly attractive across a wide variety

of sectors, offering solutions to longstanding problems related to trust, security, transparency, and efficiency…

Bitcoin was the first fully functional blockchain implementation and remains the most widely known and used cryptocurrency

- The Bitcoin blockchain acts as a decentralized peer-to-peer network where participants can send and receive digital money (bitcoins) without the need for intermediaries such as banks The blockchain maintains a public ledger that records all the transactions ever made on the network

In this version of blockchain, the main focus is on enabling secure and transparent financial transactions The consensus mechanism used in Bitcoin is proof-of-work, which requires participants (miners) to solve complex mathematical puzzles to validate and add new transactions to the blockchain This process ensures the integrity and security of the network The blockchain version of Bitcoin, or Blockchain 1.0, has attracted significant interest and paved the way for further improvements and iterations in blockchain technology It laid the groundwork for the development of other cryptocurrencies and inspired further exploration

of blockchain's potential applications beyond financial transactions

1.1 An example of a version of blockchain commonly referred to as Blockchain 2.0 is Ethereum.

Ethereum has extended the capabilities of the Bitcoin blockchain by introducing smart contracts, enabling the execution of programmable agreements and decentralized applications (DApps)

Unlike Bitcoin, which mainly focuses on financial transactions, Ethereum's blockchain aims

to be the foundation for decentralized applications It provides a Turing complete programming language that allows developers to create and deploy their own smart contracts

rules encoded into the blockchain They automatically execute transactions and act on specific conditions, eliminating the need for an intermediary or third party to execute

- Ethereum introduced its native cryptocurrency called Ether (ETH), which serves as both a medium of exchange and a utility token to power the network Additionally, Ethereum's blockchain uses a consensus mechanism known as proof-of-stake, which is different from Bitcoin's proof-of-work system, offering improved scalability and energy efficiency

By introducing programmable smart contracts and extending blockchain functionality beyond financial transactions, Ethereum has enabled the development of various decentralized applications in industries such as finance, and chain management supplies, games, etc It has become a prominent platform for innovation in the blockchain space, making it a notable example of Blockchain 2.0

1.2 An example of a version of blockchain commonly known as Blockchain 3.0 is EOS (Enterprise Operating System)

EOS aims to address the scalability limitations and performance issues faced by previous blockchain platforms, such as Bitcoin and Ethereum

- EOS uses a delegated proof-of-stake (DPoS) consensus, allowing for faster transaction processing and higher throughput In DPoS, token holders choose a limited number of block producers responsible for validating transactions and adding them to the blockchain This design allows for faster block confirmation times and higher transaction volumes than traditional proof-of-work or proof-of-stake mechanisms

- EOS also introduces the concept of parallel processing, where multiple transactions can be executed simultaneously on different chains in the network This horizontal scalability enhances the platform's ability to handle large-scale applications and greatly improves efficiency

Furthermore, EOS provides developers with an operating system-like environment that simplifies the creation and deployment of decentralized applications The platform provides features such as authentication, authorization, management, storage, and communication protocols, making it easier for developers to build complex and scalable DApps

With its focus on scalability, performance, and developer-friendly tools, EOS represents an example of Blockchain 3.0 It aims to provide a robust infrastructure for enterprise-grade applications and support mass adoption by addressing the limitations of previous blockchain versions

1.3 Distributed Ledger Technology (DLT) offers several key features that distinguish

it from traditional centralized systems These features include decentralization,

a central authority This decentralized structure ensures greater resilience, reduces single points of failure, and promotes peer-to-peer transactions

- Transparency: DLT allows all participants to view and verify transactions recorded on the ledger This transparency promotes trust because stakeholders can independently verify the integrity of the data without relying on an intermediary

Security: DLT uses cryptographic techniques to secure transactions and data The decentralized nature of DLT makes it more resistant to hacking or unauthorized modification, enhancing the overall security of the system

- Immutability: Once a transaction is written to the ledger, it is virtually impossible to change

or delete This immutability ensures data integrity and verifiability, making DLT highly reliable for various applications

Efficiency: DLT streamlines processes by automating transactions and eliminating the need for intermediaries Smart contracts, programmable agreements executed on the blockchain, improve efficiency by automatically enforcing predefined rules

- Specific examples of DLT include:

1 Bitcoin: As the first and most famous cryptocurrency, Bitcoin uses blockchain technology

to facilitate secure peer-to-peer financial transactions without the need for intermediaries like banks

2 Ethereum: The blockchain platform introduces smart contracts, allowing the creation of decentralized applications (DApps) Ethereum offers programmability and has become the leading platform for blockchain-based development

3 Ripple: Focusing on supporting fast, low-cost international money transfers, Ripple uses its own consensus mechanism called the XRP Ledger It aims to provide a seamless experience for financial institutions and improve cross-border payments

4 Hyperledger Fabric: An open-source enterprise-grade framework, Hyperledger Fabric provides modular tools and components for building private, permission blockchain networks It caters to different industries, enabling organizations to create secure and scalable DLT solutions

These examples highlight the versatility and wide range of applications that can be achieved through DLT From cryptocurrency to enterprise-grade solutions, DLT continues to shape industries by providing innovative and transformative solutions

II The influence of Blockchain technology in the field of accounting

Was Created by GS Ijiri in 1989, but not very popular Triple accounting is described as an improvement to conventional double accounting in which the accounting entries of the related parties are cryptographically sealed by a third entity (Blockchain) In the simplest terms, when both parties agree on a transaction that has occurred, a 3rd party appears and confirms this transaction is successful Similarly, a receipt or confirmation accompanies the audit's subsequent verification But this transaction does not need those two things (receipt and audit) but will be saved directly to the Blockchain - where you cannot change what has been confirmed, except to open a new transaction

1) Diagram of the working mechanism of triple accounting in Blockchain

2.1.2 Features of tripartite accounting

for everyone It is accessible to everyone, so everything is completely transparent, and the data cannot be tampered with or changed once confirmed This helps users, customers, and investors all trust those books and papers, and the audit will then be "unemployed", helping

to reduce intermediary costs, as well as avoid wasting time identifying bright

- Thanks to the three properties of Blockchain, immutability, transparency, and

decentralization, no one can edit cheat, or tamper with data, also known as "public observation but secret control" "

2.1.3 Examples of Blockchain technology in triple accounting

+ Example 1:

When a sales contract is signed, an order can be attached to the contract, followed by an invoice, delivery note, shipping note, and payment document, for the order order that There will be a unique ID generated for this contract/order, invoice, to connect them together All parties to this transaction can access this ID to track and control the transaction-only trackable, not fixable Thus, tripartite accounting and blockchain are the perfect combination for the industry

+ Example 2 of triple accounting:

Company X purchases goods worth VND 100 million from company Y, according to the principle of double recording

We have:

Company X

Record incoming goods and pay money

Debit goods account: 100 million VND

Credit cash account: 100 million VND

Company Y Record export goods and cash collection Debit cash account: VND 100 million Credit account revenue: 100 million

mechanism in accounting

2.2.1 The concept of blockchain technology

- Technically, blockchain is a decentralized database that stores information in blocks of information that are linked together by encryption and expand over time Each block of information contains information about the creation time and is linked to the previous block, along with a timecode and transaction data Blockchain is designed to resist data change: Once the data is accepted by the network, there is no way to change it (Andersen, 2017)

- In terms of accounting - auditing, blockchain is a technology that allows the transmission of data securely based on an extremely complex encryption system, similar to the accounting ledger operating in the field of engineering digital The participants only need to build a ledger network that shares all transaction information when one member updates the information, all other members are allowed to view, and read…

2.2.2 Features of blockchain technology

- The main difference of blockchain is the distributed ledger technology with the ability to transact without the need for a trusted third party - like a bank (Ashton, 2009)

Distributed Ledger Technology and Centralized Ledger

- Blockchain can be seen as a distributed, decentralized, transparent, and timed database of