REA, Triple-Entry Accounting and Blockchain: Converging Paths to Shared Ledger Systems

32 Pages Posted: 11 Jun 2020 Last revised: 17 Jul 2023

See all articles by Juan Ignacio Ibañez

Juan Ignacio Ibañez

UCL Centre for Blockchain Technologies; The DLT Science Foundation

Chris N. Bayer

Development International e.V.

Paolo Tasca

UCL Centre for Blockchain Technologies

Jiahua Xu

University College London - Department of Computer Science; The DLT Science Foundation; École Polytechnique Fédérale de Lausanne; UCL

Date Written: May 15, 2020

Abstract

The concept of shared ledger systems offering a single source of truth has repeatedly called traditional bookkeeping into question. Improving upon the long-standing double-entry system, solutions such as the Resource-Event-Agent (REA) accounting framework, triple-entry accounting (TEA) and blockchain have been advanced. However, to date, the historical development of these concepts remains murky. This paper conducts a genealogical analysis of shared ledger systems, in particular tracing the development of REA, TEA and blockchain. We show how the REA framework has had a distinct influence on independent streams of research in the field of TEA, and how this interaction may be traced to the present incarnation of shared ledger systems in blockchain. In doing so, we duly acknowledge the influence of key individuals contributing to this development, correct common misconceptions and map out how the paths of REA, TEA and blockchain overlap in the realm of shared ledger systems.

Keywords: Triple-Entry Accounting, REA Accounting Model, Single Source of Truth, Blockchain, Distributed Ledger Technology

Suggested Citation

Ibañez, Juan Ignacio and Bayer, Chris N. and Tasca, Paolo and Xu, Jiahua, REA, Triple-Entry Accounting and Blockchain: Converging Paths to Shared Ledger Systems (May 15, 2020). Available at SSRN: https://ssrn.com/abstract=3602207 or http://dx.doi.org/10.2139/ssrn.3602207

Juan Ignacio Ibañez (Contact Author)

UCL Centre for Blockchain Technologies ( email )

UCL CBT UCL Computer Science
Malet Place London WC
London, London WC1E 6BT
United Kingdom

The DLT Science Foundation ( email )

United Kingdom

Chris N. Bayer

Development International e.V. ( email )

Germany

Paolo Tasca

UCL Centre for Blockchain Technologies ( email )

Gower Street
London, WC1E 6BT
United Kingdom

HOME PAGE: http://paolotasca.com

Jiahua Xu

University College London - Department of Computer Science ( email )

London
United Kingdom

The DLT Science Foundation ( email )

London
United Kingdom

École Polytechnique Fédérale de Lausanne ( email )

Quartier UNIL-Dorigny, Bâtiment Extranef, # 211
40, Bd du Pont-d'Arve
CH-1015 Lausanne, CH-6900
Switzerland

UCL ( email )

UCL Computer Science
Malet Place London WC
London, London
United Kingdom

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