Should accountants care about blockchain?

• DOI: http://doi.org/10.1002/jcaf.22424
• Date: 01 April 2020
• Published date: 01 April 2020

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Should accountants care about blockchain?

Stephen H. Fuller | Ariel Markelevich

Accounting Department, Sawyer Business

School, Suffolk University, Boston,

Massachusetts

Correspondence

Ariel Markelevich, Suffolk University,

120 Tremont Street, Office 5341, Boston,

MA 02108.

Email: amarkelevich@suffolk.edu

Abstract

The use of blockchain technology has increased tremendously over the last

decade. Blockchain continues to evolve and new features and capabilities are

developed continuously. Although the use of the technology started in crypto-

currency (specifically, Bitcoin), it has expanded to other areas that can benefit

from a shared, secure, ledger. This article investigates the potential impact of

blockchain technology on the accounting profession. This article analyzes data

security and privacy considerations, technology, adoption, and implementation

considerations, and some considerations that relate specifically to accounting

and auditing. We find that the unique needs of an accounting information sys-

tem may not be a good match for blockchain as it currently exists. While we

explain that blockchain may deliver many benefits, particularly in the areas of

data reliability and the financial statement audit, we identify several factors,

which raise significant questions about whether blockchain will ever be signifi-

cantly integrated in the accounting function. Chief among those concerns is

the scalability of the technology at an acceptable cost. While significant invest-

ment has and will be made for further development of blockchain business

applications, it is our assessment that proponents of blockchain integration in

accounting have not yet made the economic case for it. We also have signifi-

cant concerns about whether blockchain technology can adequately address

risks associated with data security and privacy. Addressing all these issues will

be a minimum requirement for gaining widespread acceptance by firms and

their accountants.

KEYWORDS

accounting information systems, blockchain, distributed ledger, information technology

adoption

1|INTRODUCTION

Blockchain technology has grown virally over the last

decade due to the emergence and sensational growth in

cryptocurrencies starting with Bitcoin. In more recent

years, the focus on blockchain has expanded well beyond

cryptocurrencies to a wide variety of potential business

processes for which blockchain may be an effective

solution. Worldwide spending on blockchain technology

is projected to grow at a compounded annual rate of 73%

through 2022 when it is expected to total almost $12 bil-

lion, with the growth spread across both geography and

industries (IDC, 2018). It is fair to say that, initially, many

parties conflated the concepts of blockchain and Bitcoin

and did not understand the unique technology character-

istics of blockchain. In a recent international poll

Received: 14 June 2019 Revised: 16 September 2019 Accepted: 19 October 2019

DOI: 10.1002/jcaf.22424

34 © 2020 Wiley Periodicals, Inc. J Corp Acct Fin. 2020;31:34–46.wileyonlinelibrary.com/journal/jcaf