BLOCKCHANE TECHNOLOGY IN ACCOUNTING AND AUDIT

Abstract

Introduction. In the coming years, the accounting sector is expected to undergo major changes due to the fact that Blockchain technology is being actively introduced in the financial sector of the countries. The article gives a critical assessment of the situation, as well as discusses the problematic aspects and prospects for the development of the blockchain in the system of accounting and auditing. The definition of the economic content of the blockchain is investigated. It has been found that the cryptocurrency system works on Blockchain technology, the essence of which is the possibility of a separate group of people to manage a virtual "ledger", i.e. one sheet of such a book is a block, and the book itself is a chain of block sheets. The platform is a public register based on distributed ledgers, which can be shared across multiple network nodes, providing each participant with their own copy. The studied technology has an important feature for accounting, because the information created in this database can be trusted, even if there is no trust in the counterparty. Blockchain technology is the basis of the basic principles of cryptocurrency: transparency, anonymity, decentralization,speed and security. Blockchain technology and one of the products of its implementation - cryptocurrency, can really be a starting point for the transformation of the world economy and its implementation in Ukraine. With the help of the blockchain, the relations «state-business», «business-business», «population-state» can change significantly. In other words, the main transformation will be related to the possibility of delegating to a computer program (algorithm) the conduct and certification of transactions without the participation of third parties (state, banks, other intermediaries), the results of which will be trusted by all or most economic entities (market). Methods. The authors used the following scientific methods in the process of research: induction and deduction - in the process of studying the general trends of Blockchain development in Ukraine, analysis and synthesis - during theoretical generalizations, formation of appropriate conclusions; bibliographic - research of literary sources to obtain the necessary information on the research topic; method of associations and analogies - for proposed new ideas and proposals that arise from comparison with other more or less similar objects. Results. Proponents of Blockchain technology believe that the new tool will be able to replace not only accountants but also banking institutions and many financial intermediaries. According to the Blockchain Research Institute, Ukraine was on the list of 14 countries that were recognized as leaders in the implementation of Blockchain. However, the state needs to restructure huge systems with a huge number of people to use this tool. Blockchain technology aims to put an end to traditional methods of accounting, documentation, processing, registration, inventory systems. Blockchain allows companies to register both parties to a transaction simultaneously in a shared book in real time, rather than storing matched records of financial transactions separately in a private database. The need for traditional double-entry bookkeeping will be eliminated, as the verification of the legality of accounting will be fully automated. Disscusion. The main task set when writing the article is to substantiate the feasibility of using blockchain technology in accounting and auditing.