Research On Financial System Application Based On Blockchain

Blockchain has become a familiar topic and even a hot issue to ordinary people as well as the whole society,which results from the emergence and application of some digital currencies,such as bitcoin.In other words,as the technical support of it,there is no doubt that people will pay more attention to blockchain itself.What blockchain relies on is the encrypted distributed ledger which is totally different from the credit mechanism that we currently apply.Therefore,the blockchain technology has made tremendous progress to rebuild the model of economic industry.To be more specific,one of the most prominent advantages of blockchain is the anonymous credit mechanism which already turns into a reality by several advanced technologies.The unified algorithm,lightning network and intelligent contracts make the blockchain possible.In addition to that,the encryption technology,which is based on cryptography is also the important one.All these factors pave way to a decentralized system.This system can dramatically improve working efficiency,since people can make full use of the point-to-point transaction and lightening network;besides,the distributed encryption storage will guarantee the security of certain information while maximize the information transparency and decrease the cost of information gathering.Accounting is destined to be the major aspect that needed to be reform,if there were certain revolution,for its close correlation with a company's economic development and the changes in value.All of the four major accounting firms are now competing with each other for any outbreak within the blockchain area,because there is no denying that along with the application of blockchain technology,the accounting system will go through huge reform,even revolution.Based on the introduction of blockchain technology and Deloitte Rubix platform,firstly,this paper will make a comparison between the new and traditional accounting model and reveal the difference when dealing with accounting information,especially in the emerging,storing,transmitting and processing of certain information statistics,by relating to the economic business activities of specific company.Secondly,to prove that the blockchain will bring vital influence among various core business such as cross-border payment,accounting,data storage andbusiness audit,this paper will analyze how the new model might have advantages over the traditional one when dealing with the important business.Thirdly,the idea that the blockchain-based financial system will exceed than other forms in dealing with accounting process and lower the cost of time and human resources.Moreover,due to the unchangeable encrypted distributed data storage,it can provide a more accurate and secure accounting information and make contributions to the transparency of certain information.Therefore,on the one hand,this will be much helpful for a company's self-auditing and real-time auditing.On the other hand,the accounting industry should explore more potential and future application of blockchain technology so as to speed up its development.