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Technical

Focus on blockchain's risks before the rewards Logo cgma

  Kirk Phillips |   Free |   Aug 2018 |   FM magazine

Blockchain is a digital ledger technology which has become very popular. Switching to this technology can promote efficiency and eliminate processes but it does come with risks. This article explores the way it operates and the benefits and pitfalls to avoid. In particular there could be gaps in the legal framework and security issues associated with its use.

Topics covered:
  • Management accounting: Technical: Risk management & internal control: Risk management policies & procedures, Advanced
  • Management accounting: Technical: Accounting information systems: Accounting information systems and digital technologies, Intermediate

1 Comments/Reflections

Gary Hammond

Gary Hammond Sep 2018

An interesting article which has filled some knowledge gaps in my ongoing understanding of blockchain.   The use of digital technology to replace legacy manual processes, or at least processes overseen by manual governance is exciting and has the potential to change the accounting landscape significantly.   

For Blockchain, time will tell whether this route gains sufficient trust to be a successful alternative to traditional transnational methods.  Other uses of technology and data such as 'making tax digital' initiative in the UK will only become more prominent in the near future.

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