Work-Standard Accounting Practices: Triple-Entry Account Bookkeeping

The emergence of Cryptocurrencies, beginning with Bitcoin, has made it feasible to entertain the development of Triple-Entry Account Bookkeeping as an expansion of Double-Entry Account Bookkeeping. Conceptually speaking, Triple-Entry Account Bookkeeping follows very similar premises to that of Double-Entry Account Bookkeeping. What made it so distinct in practice and thus worthy of mention here is that Triple-Entry Account Bookkeeping incorporates a third entry into the equation, a feat made possible by Blockchain Technology.

Prior to Bitcoin and Blockchain Technology, it was impossible to envisage the presence of a third party beyond that of the buyer and the seller within a transactional sale. One could only evaluate the transactional sale from the perspectives of either the buyer, the seller, or both. Blockchain Technology facilitates the existence of the third party by allowing anyone with access to the Blockchain to learn about the transactional sale. The Blockchain features cryptographic security measures designed to ensure that the identities of the buyer and seller are both hidden to the third party. At the same time, neither is aware of the identities of the third party. After all, anyone with access to the Blockchain is technically capable of becoming that third party, and the buyer and seller would not be the wiser to the cryptography employed by the Blockchain.

Moreover, Triple-Entry Account Bookkeeping includes another feature that has also been programmed into the Blockchain. Every transactional sale is assigned its own Timestamp and incapable of being altered or destroyed. The digital records are shielded from tampering. This creates an auditable financial trail to keep watch over the movements of Cryptocurrency and the changes in balances between Wallets. Thus, the Blockchain functions as a real-time ledger that is being recorded automatically, in addition to notifying people about the existences of newly created Cryptocurrencies. In fact, the Blockchain itself is what ultimately enables the accumulation of existing Cryptocurrencies and the creation of newer ones.    

Since Bitcoin came with a built-in limit to how many can be created on its own Blockchain, new Cryptocurrencies are being introduced to the digital realm in response to that limitation. All of the newer Cryptocurrencies, including Ethereum, rely on their variations of Blockchain Technology. But they all retain the same technical designs which stem from Triple-Entry Account Bookkeeping. The obvious benefit of employing a Triple-Entry Account Bookkeeping System is its transparent, real-time auditing and processing of any transactional sales.    

The Work-Standard has sought to contend with the emergence of Triple-Entry Account Bookkeeping when it came to the topic of Digital Arbeit and Digital Geld. For outside of the digital realm, Actual Arbeit and Actual Geld continued to reign supreme. Compared to Actual Arbeit and Actual Geld, Digital Arbeit and Digital Geld needed to be converted into Actual Arbeit and Actual Geld before accountants could include them as additional sources of Arbeit and Geld. The solution posited in The Work-Standard (2nd Ed.) and The Third Place (1st Ed.) is to devise a subvariant of the Life-Energization Reciprocity (LER) Process. The Life-Energization Reciprocal Electrification (LERE) Process will become relevant later on in Section Three, where it will be discussed in relation to the Blockcycle Technology and the accounting practices to be employed alongside it.  

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