Blockchains: An Experiential Accounting Learning Activity

Abstract

Organizations such as the AASCB and the Pathways Commission (2012) recommend that emerging technologies be included in the accounting curriculum. Yet the inclusion of emerging technologies represents a challenge for accounting educators due to the complexity and uncertainty associated with many technologies, as well as the rapid pace of technology change and innovation. This paper answers the call by the Pathway Commission (2012) for additional research focused on enhancing learning experiences to better reflect current and emerging technologies. Using an experiential learning approach (Butler, Church, and Spencer (2019), we create a hands-on, learning activity focused on blockchains in order for accounting students to gain a conceptual understanding of blockchains and its applications and implications beyond bitcoins.

A new paradigm of Luca Pacioli’s bookkeeping on blockchain phenomenon

“…Each block is a group of transactions added to the last block by reaching a consensus on its authenticity among users. This block is then passed to each network user to update the pre-existing database (Coyne & McMickle, 2017;Lee et al, 2021;Chowdhury, 2021). The blockchain system records all transactions ever made, shared through a consensus distributed among each user of that transaction, and it is challenging to determine consensus.…”

“…Giant corporations cannot use public blockchains because they do not want to provide their information to the public. In addition, on public blockchains, no authority regulates a person to read or verify records on the blockchain (Lee et al, 2021).…”

“…Blockchain technology has changed the nature and type of economic transactions to digitize with the various forms of algorithms that accompany such transactions. The transactions are then translated into an economical language to be recorded in the bookkeeping of economic transactions, currently known as double-entry (Lee et al, 2021). However, in reality, transactions involving blockchain are rarely recorded intact in the accounting of economic transactions.…”

“…However, the concept of debit and credit is experiencing several obstacles over the development of the phenomenon of digital transactions, one of which is transactions carried out through blockchain technology. This transaction involves a programming language that is very difficult to detect by ordinary recording systems, so a recording mechanism is needed to explain the phenomenon (Lee et al, 2021;Chwdury et al, 2020;Perez et al, 2020). Thus, the authors argue that the double-entry recording system requires adjustments to various blockchain transactions so that the recording implementation of the programming language can be adjusted.…”

“…However, it is related to the many distributions of transactions that occur continuously, so the implementation of double-entry cannot be implemented in transactions involving blockchain technology. Thus, triple-entry implementation in blockchain transaction systems is relevant to events or transactions that occur continuously (Lee et al, 2021;Chwdury et al, 2020;Ijiri, 1986;Fraser, 1993).…”