Blockchain distributed ledger technology: An introduction and focus on smart contracts

Abstract

Abstract The rapid evolution of the blockchain and distributed ledger technology and the associated applications will require many changes in the way business is transacted and how transactions are recorded. Significant R&D investments in blockchain environments and the maturation of application uses of “smart contracts” and other types of self‐executing tools are establishing frameworks for expanded use, infrastructure growth, and further development. The realization of the impact of these investments is currently changing entire business processes, transforming industries, and impacting governments globally. This global disruptive impact is a major technology evolution and will be transformational to society over the next several decades much as the Internet has been over the last 30 years. As these changes will be especially transformational to fundamental accounting processes, tools, and methodologies of today, accounting and finance professionals would be wise to embrace the technological challenges associated with blockchain technology.