Jul 2021

The distributed ledger future: Recording transactions without an accountant

By: Odyssey General
Tags: bitcoin

The impact of governments across the world pushing large amounts of currency into their economic markets has created a unique situation, of which the ramifications will not be known for many years to come. At the same time, countries are unique in terms of their approach to covid in terms of lockdown, vaccination approach and herd immunity. With these black swan “once in a lifetime” events running in the foreground, there is still ongoing digitization and globalization, and an ongoing interest in bitcoin and other digital coins.

The digital coin issue has entered sufficient mainstream for the Australian tax office to advertise publicly it will be looking to tax Bitcoin and other digital coin transactions, and advising on taxable transactions. The digital age has fundamentally changed the world. We have embraced digitized music and film, and we can now go into a car park without picking up a ticket or having to pay. 

The distributed ledger system on which bitcoin and many other systems are built has attracted a raft of public opinion across the spectrum. Some are suggesting bitcoin is not a currency but instead should be looked at in light of it’s ability to be an enabling platform for transactions.

Bitcoin, or some other distributed ledger system, will have applications in the future that we can’t yet comprehend. For instance, in a system where motor vechicles are automated (driverless) and go to an electric charging station (without humans) and receive a charge, there will be an automatic cost/invoice generated to the owner of the car. This service from automation to automation will involve a completely new requirement for invoicing and payment.

In more real world situations, the removal of the “banks” in the system of money can be extrapolated to consider what else can be removed. A secure payments system between peers doesn’t need banks to telegraphically transfer money.  

In the future we may remove the need for central bodies to maintain patents, contracts, land titles, or proof of ownership – all can be held securely held in the public ledger.

We should see ongoing disruption in the marketplace as middlemen are replaced one by one. Consider already payments without the bank middleman, investments without a broker, loans without a bank, insurance without an underwriter, charity without a trustee (gofund me), escrow without an agent, betting without a bookie, or even perhaps record keeping without an accountant.

The distributed ledger system is truly global, secure, nearly instant, and nearly free. It must surely be integral to the future of money and commerce.

If you need assistance with outsourcing your Australian compliance drop us a line.

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