Block Chain Technology and the New Wave of Accounting Practices - Research Article 45-55

Aug 29, 2026

Uploaded by Rhys

Block chain provides a new, secure, and accessible method for processing and storing both financial and non-financial information. This paper applies a conceptual approach to analyze how block chain technology reshapes accounting practices. Growing interconnection of business transactions and technological development redefine accounting standards beyond conventional norms, influencing accounting and auditing globally. The study concludes that traditional accounting practices should be reviewed and redirected by adopting and integrating block chain technologies and related by-products, including cryptocurrencies.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages11

Reading Time28 min

AccessFree to download

Introduction

Block chain evolution and impact on accounting models

Distributed ledger, security, and validation mechanism

Types of block chain technology and use cases

Crypto-assets, cryptocurrencies, and accounting implications

Block Chain Technology and the New Wave of Accounting Practices Sebastine Abhus Ogbaisi1* Monday Edosa2 Lawrence Ayemere Ibadin1 1Department of Accounting, Faculty of Management Sciences, Ambrose Alli University, Ekpoma, Edo State, Nigeria 2Department of Accounting and Finance, College of Management and Social Sciences, Glorious Vision University, Ogwa, Edo State, Nigeria *[Correspondence Email :](Correspondence Email : sebastine.ogbaisi@aauekpoma.edu.ng)[ ](Correspondence Email : sebastine.ogbaisi@aauekpoma.edu.ng)[sebastine.ogbaisi@aauekpoma.edu.ng](Correspondence Email : sebastine.ogbaisi@aauekpoma.edu.ng) [https://doi.org/10.33003/fujafr-2024.v2i2.92.45-55](https://doi.org/10.33003/fujafr-2024.v2i2.92.45-55) Abstract Block chain offers a new and secure way to process and store financial and non-financial information that is easily accessible to users. This paper utilizes a conceptual approach in examining the link between block chain technology and the new wave of accounting practices. With the growing interconnectedness of business transactions, development of block chain technology, has no doubt redefined accounting practices, setting and reforming new standards from the conventional norms. The use of block chain technology has altered the accounting and auditing space in the global architecture, bringing into fore, new patterns, innovations and developments in the field of accounting. Invariably, accounting practices would need to accommodate and embrace this digital money evolvement in its conventional standards in order to meet up with the ever increasing, demanding, evolving and competitive global accounting architecture. The study concludes that there is a consensus on the need to review and redirect the orientation of traditional accounting practices by adopting, accommodating, integrating and harmonizing block chain technology and its by-products, cryptocurrencies into current development in accounting practices and reports. Furthermore, the prospect of accounting practice has become broadened, defining and integrating new limits with block chain technology. This, without doubt, is creating a more harmonized accounting practice in the global professional space. Keywords: Accounting Practices, Block Chain Technology, Decentralized Network, Evolving Technology. 1.0 Introduction The creation and evolution of block chain technology over the past decade has accelerated exponentially, and is altering traditional business and accounting models/practices. Block chain offers a new and secure way to process and store financial and non-financial information that is easily accessible to users (FASB Bulletin, 2023). Block chain technology is a distributed ledger technology that can be used to create secure and transparent transactions. Block chain comprises of a series of ‘blocks’ each of which contains data for multiple transactions, a hash (similar to a unique record number), and the hash of the previous block. Each block is validated by a decentralized network of participants (such as, peer –to peer network without a central authority, and is connected to another block using cryptography (that is, code) . Block chain technology is an advanced database mechanism that enables the distribution of transparent information within a business network. A block chain database stores data in blocks that are connected together in a chain. Block chain technology uses cryptographic algorithms (secure processes) to secure each block of data and bind the blocks together to create a record of previous data (Legge, 2024) . Legge (2024) opines that there are basically, four main types of block chain technology exist, namely, public, private, consortium, and hybrid. Each of them has separate advantages, drawbacks, and specific use cases. In a world where robotics and artificial intelligence (AI) and digital technology have dominated the global space, it is no longer surprising that ‘money’ the very pivot on which t

FAQs

What relationship does the paper examine between block chain technology and accounting practices?

The paper conceptually examines how block chain technology links to the new wave of accounting practices and how it influences accounting standards.

How does block chain technology secure information and transactions?

It uses a distributed ledger and cryptographic mechanisms to validate transactions through a decentralized network, making tampering with stored data highly difficult.

What conclusion does the study reach about traditional accounting practices?

It concludes that accounting practices should be reviewed and redirected by adopting, accommodating, integrating, and harmonizing block chain technology and related by-products, such as cryptocurrencies.

Aug 29, 2026

Uploaded by Rhys