Bitcoin changed the accounting method of accounting and created a distributed bookkeeping method based on the double entry bookkeeping method. and promoted the reform of accounting.
We can say that accounting is the foundation of economics. At present, people's economic activities are all based on the bank account system, and the accounting rules of which are all based on double entry bookkeeping. Double entry bookkeeping has a long history. In Europe in the 12th to 13th centuries, due to Italy's developed money economy at that time, double entry bookkeeping had already appeared in cities such as Venice.
Why is this bookkeeping system called double entry bookkeeping? Because every transaction is recorded in at least two different accounts. The result of each transaction will be recorded in at least one lender and one borrower's account, and the total amount of both parties is equal. Double entry bookkeeping can reflect economic activities more completely, allowing users to understand the entire process of each economic activity and know the final result.
In our economic and business activities over the past 500 years, modern civilization has been built on the basis of double entry bookkeeping accounting. Although it improves the efficiency of economic activities and records the entire process of economic activities, but it is inevitable that there will be fraud problems caused by false accounts. At present, after more and more companies are listed on the capital market and publicly raise funds, the problem of "false accounts" is widespread in these listed companies. Many listed companies do not rely on their real performance to promote the company's development, but deceive users by creating fake accounts. This asymmetry of information between companies and users has caused a lack of trust.
After the birth of Bitcoin, the distributed bookkeeping method it pioneered reformed accounting in another way.
Bitcoin's economic system uses distributed ledger, which is composed of many equal nodes, and each node has all the data. This means that every user of the system has an automatically updated ledger that contains every transaction that occurs in the system. The nodes in the system reach a "consensus" on the transaction through the consensus mechanism. Once the transaction is confirmed, no one can tamper with it. In the Bitcoin system, a copy of each transaction will be broadcast to users across the network, instead of being controlled by a centralized institution.
In this way, the distributed ledger can not only record economic behavior, but also other data, and at the same time tell every user that this data cannot be changed. Distributed ledger has the following characteristics：
- 1.Transparent：All accounting information is transparent, anyone can check them.
- 2.Equality：All bookkeeping nodes are equal, there is no difference between them, and everyone has the same status.
- 3.Shared：All bookkeeping nodes share bookkeeping information, and all record all information in the ledger.
- 4.Immutable：When the ledger information is confirmed by consensus, unless a 51% attack occurs, all ledger information cannot be tampered with.
- 5.Holographic：Bitcoin ledger can not only record the transfer of funds, but also record the transfer of information, integrating funds and information transfer.
- 6.Decentralized：The Bitcoin ledger is a common accounting by multiple nodes and maintains a ledger together, so there is no center.