Triple-entry Accounting, Blockchain and Next of Kin: Towards a Standardisation of Ledger Terminology

TL;DR

This paper aims to standardize terminology in triple-entry accounting within blockchain technology to improve clarity and understanding, addressing current inconsistencies and ambiguities in the field.

Contribution

It provides a structured framework to distinguish key concepts like accounting, bookkeeping, and different types of distributed ledger systems, promoting standardization.

Findings

Clarified the distinctions between accounting, bookkeeping, and ledger types.

Proposed a standardized terminology framework for TEA in blockchain.

Highlighted the importance of clear definitions for technological advancement.

Abstract

Triple-entry accounting (TEA) is simultaneously a novel application in the blockchain universe and one of the many concepts applied in blockchain technology. Its Wild Wild West status is accompanied by a lack of consistent and comprehensive set of categories, a state of play that impedes a proper apprehension of the technology, leading to contradictions and oversight of important nuances. To clearly delineate the confines of TEA within the world of blockchain, we provide building blocks to standardise its terminology. Particularly, we distinguish between essential elements such as accounting and bookkeeping, as well as between decentralised systems, distributed ledgers and distributed journals.