by Penelope Johnson – Senior Manager, Product Strategy & Management, Association of International Certified Professional Accountants
When someone mentions blockchain, the first thing that likely comes to the minds of accounting professionals is Bitcoin. However, blockchain technology extends far beyond cryptocurrency. In the age of disruption, the keys to success are staying ahead of new innovations and adapting whenever necessary. First, you need to fully understand how the complicated process works. Here are three ways to break down blockchain.
Understand the basics
Blockchain has been called the most disruptive technology in decades. Simply put, it’s a distributed digital ledger of continuously growing records called blocks. These blocks are linked and secured using cryptography. It contains a true, verifiable and permanent record of each and every transaction ever made in the system.
Recognize its growth and adapt accordingly
The global blockchain market is expected to grow from $412 million in 2017 to $7.7 billion by 2022. According to UK-based Juniper Research, 57 percent of large global corporations are either actively considering or in the process of deploying blockchain infrastructure. Two-thirds of those that have already started are expecting to have blockchain implemented by the end of 2018. The accounting and finance profession will play a significant role in driving the adoption of blockchain technology, including those in the audit and tax areas.
If accountants can develop the new skills necessary to properly utilize blockchain, they can increase revenue, relevance and value. The Association is developing a comprehensive learning program, Demystifying Blockchain, to ensure you have education and competencies in this space. By bringing concepts to life with innovative learning elements, like augmented reality and video simulations, you’ll understand and prepare for the blockchain revolution.
For more information about how technology is disrupting the accounting profession, check out our Beyond Disruption podcast.