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

63 Pages Posted: 11 Jun 2020 Last revised: 26 Jan 2021

See all articles by Juan Ignacio Ibañez

Juan Ignacio Ibañez

Universidad Católica de Córdoba; UCL Centre for Blockchain Technologies

Chris N. Bayer

Development International e.V.

Paolo Tasca

UCL Centre for Blockchain Technologies

Jiahua Xu

University College London - Department of Computer Science; Ecole Polytechnique Fédérale de Lausanne

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 systems, 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 shared ledger systems 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 had a distinct influence over 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 each individual 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)

Universidad Católica de Córdoba ( email )

Obispo Trejo 323
Córdoba, X5000IYG
Argentina

UCL Centre for Blockchain Technologies ( email )

Gower Street
London, WC1E 6BT
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 )

United Kingdom

Ecole Polytechnique Fédérale de Lausanne ( email )

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

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