REA, Triple-Entry Accounting and Blockchain: Converging Paths to Shared Ledger Systems
32 Pages Posted: 11 Jun 2020
Date Written: May 15, 2020
In recent years, the concept of shared ledger systems offering a single source of truth has begun to put traditional bookkeeping into question. To date, its historical development remains unclear and under-researched. This paper conducts a genealogical analysis of shared ledger systems from their early forms such as Resource-Event-Agent (REA) accounting and triple-entry accounting (TEA) to their present incarnation in blockchain. We show how accounting frameworks developed between the 1980s and the early 2000s constitute the historical roots of TEA and have impacted much-discussed blockchain applications of today. As such, 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 converge in the realm of shared ledger systems.
Keywords: Triple-Entry Accounting, REA Model, Single Source of Truth, Blockchain, Distributed Ledger Technology
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