Bitcoin Masterclasses in Zurich: Blockchain enables us to change the nature of accounting
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Dr. Craig Wright recalls the benefits outlined in the first session, such as having verifiable true information on the chain and all that entails, and asks what areas we can implement it.
Looking at art first, Dr. Wright imagines a scenario where there is a dispute over ownership. We can verify who owns it using the information on the blockchain. Art auction companies like Christie’s can make it the norm for buyers and sellers to transact on the blockchain, accelerating technology adoption in their industry. In fact, one of the reasons why large auction houses like this exist and have such prominent positions in the market is that they are trusted, but Bitcoin SV (BSV) removes the need for trusted intermediaries in all possible areas, creating peer-to-peer economies where they never has existed before.
Dr. Wright emphasizes a point he made earlier, saying that auction houses like Christie’s serve more than one purpose, so eliminating the need for a trusted middleman does not necessarily remove them. It is also the case for auditors, accountants and other experts. In the new blockchain-powered economy, they would serve a different purpose, but they would still add value and be needed for certificates and other important things.
Sticking to the art example, Dr. Wright again points out that blockchains cannot solve all problems. Warehouses can burn down, art can be damaged in transit, people can tamper with it, etc. Blockchain can help track where and when these things happened, but things like insurance companies, security teams, and other services will still be needed.
“We want to move people to value addition,” says Dr. Wright. Doing so can also save companies significant amounts of money by reducing the labor hours required to do things. Having one provably true data set that anyone can look at, attest to and do what they need to will also create significant time and financial savings.
When looking at parts in supply chains, Dr. Wright says one of the main reasons for inaccurate inventory records is that it’s simply too difficult to give each box and item its own number. With the blockchain, it becomes easier. Doing so will allow for other interesting avenues, such as tracing the history of each unique part through its life cycle.
Speaking of life cycles, Dr. Wright asks if there are things that don’t expire. The group is thinking about gold. He then asks them to imagine that each gold bar is tokenized, making it possible to audit inventory much more easily and making it easier for suppliers and sellers to ensure that their gold bars are traded regularly. Likewise, things like diamonds can be traded or stolen, and blockchain can make it easier to detect when that happened.
“We have a technology that enables us to change the nature of accounting,” he says. It’s no longer about saying we have one box of 20 widgets, but rather about having specific widgets. Being able to register things cost-effectively on an individual basis is what makes this possible. This has huge implications, including enabling companies to obtain verifiably accurate real-time inventory information, more easily track fraud and more.”
“We’re not going to put a barcode on a coffee bean, but we’re going to track how many people go in and out and look for irregularities,” says Dr. Wright, summarizing the point of this session and the third Masterclass in general.
Watch Bitcoin Masterclasses Series 3 with Craig Wright: Yes, human accountants are still needed
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