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Given that it features elements such as decentralization and transparency, blockchain certainly has the potential to improve information and accounting quality. Also Read: Beginners Guide: What is Consensus Algorithm? Lets go through them below one by one to make more sense out of it. All network participants with permissioned access see the same information at the same time, providing full transparency. Independent auditors will need to understand blockchain technology as it is implemented at client sites, whether clients are pursuing blockchain business opportunities, implementing blockchain business applications, or applying blockchain in accounting. The solution is to do transactions off-blockchain and only use blockchain to store and access information. Those who work in accounting don't yet need to know all of the ins and outs of blockchain technology, but it's definitely time to keep an eye on developments at least within your organization. If you want to learn more, then you should check out our detailed beginners guide on blockchain: Blockchain For Beginners: Getting Started Guide. It maintains a decentralized and secure record of crypto transactions. The reliance on users makes it as one of the disadvantages of blockchain. It uses the Proof-of-Work consensus algorithm that relied on the miners to do the hard work. But what makes blockchains attractive to modern organizations? In December 2017, Chartered Professional Accountants of Canada (CPA Canada), the Association of International Certified Professional Accountants (the Association), and the University of Waterloo Centre for Information Integrity and Information System Assurance (UWCISA) published "Audit & Assurance AlertBlockchain Technology and Its Potential Impact on the Audit and Assurance Profession," a paper focused on explaining blockchain technology and how it could potentially impact the financial statement audit, introduce possible new assurance services, and create new roles for the Certified Public Accountant (CPA) auditor in the blockchain ecosystem. Here are some facts about the blockchain ecosystem and how it will influence accounting in 2021 and beyond.