Blockchain Set to Disrupt Accounting for First Time in 500 Years with Triple-Ledger Technology
by Josh Anderson
NORTH CHARLESTON, SC — Blockchain data centers are pushing the envelope, and that means that they’re setting new standards. At CapRE’s Southeast Data Center Spring 2018 Update, we invited Allan Williamson, Principal of At Home Crypto LLC and Nathan Porter, Partner at Cryptos Managed to offer insight into what blockchain and crypto-currencies will mean for future data center design, construction, and development. Below, Porter asked Williamson a question from the audience about the potential for blockchain technology in and outside of the data center environment.
Porter: In the long term, there is expected to be a paradigmatic shift using blockchain’s accounting innovation on multiple industries and businesses, which are all looking to trim costs and share information more efficiently, as well as roll out new products faster. What are some examples that companies are working on and how is it changing data centers?
Williamson: I’m sure you guys have heard people say something to the effect of, I’m not a fan of bitcoin but I like the underlying blockchain technology that supports bitcoin. And bitcoin in itself was an advance in money, but it was also an advance in accounting. One of the first advances we’ve had in accounting in a really long time.
Well, I don’t know how many of you guys are bookkeepers or if you do anything on that side of it, but you have single-entry accounting, which is basically just a straight line that adds the facts or whatever – you bought something, you paid for something, you paid some money, and it went out. Then you have double-entry accounting, which is where you have your credits and your debits, which is what most people do today. It was invested something like the 1500s. Five hundred years later, Satoshi Nakamoto, when he wrote his white paper, basically what bitcoin was, was the first ever real life example of triple entry accounting. Which was theorized sometime in the late 90s.
The idea of triple-entry accounting is that you have this immutable ledger. So you have your debit and you have your credit – the exchange of the transaction. But then you have the immutable ledger which says exactly why that entry took place. And what that does, is allows us to remove third-party entities from a lot of different things. So think of it as a bank, for example. You have your debits and your credits, and the bank acts as that third-party that verifies that those two transactions actually took place. So now what you’re able to do is remove that third party from the situation, and those transactions can take place peer to peer.
But because of the immutable ledger, that third entry, we can actually confirm that everything is 100% legitimate. We can track the movement of that specific token anywhere that we want to.
So the fact that you can remove a third party is huge. And a lot of people don’t realize just how impactful that will be on society and how we operate. So think of your card registration. It could remove the need for having to register your car, or your home, any asset that you own with the government anymore. We no longer need the government to verify that that transaction actually took place.
Another way that it can actually be used is that there is a technology out there called BCHAIN. And that’s logistics-oriented. So say you’re Louis Vuitton. One of the issues that Louis Vuitton has is with counterfeits. People making knockoffs of whatever they make will cut into their margin. So what you can do, using blockchain technology, is have a tag put into the actual product, so a Louis Vuitton bag with a special piece of technology inside of it. And what that does, using BCHAIN technology is follow it from the manufacturer to when it was picked up to when it was sent to the sort facility, to when it was actually shipped out. All of that stuff will follow it all the way through, so you can see it’s an authentic Louis Vuitton purse or whatever the case may be.
Another example, is a company in Atlanta called Patientory. And what Patientory does is take your medical information and store it on the blockchain. So one of the problems we have is you have three different specialists and those specialists don’t always communicate together. All of your medical information or history doesn’t always get communicated because of HIPAA compliance.
So what it does it gets stored on the blockchain and anyone who has the necessary privacy keys can go in and see your entire medical history. If all they need to do is update it, because it’s like a lab tech or something like that, then they will have a public key that allows them to send the necessary data to the blockchain. So now you can actually go from doctor to doctor, and hand them your actual key, so they can see your entire history, and it’s all encrypted with the actual blockchain itself.
Check out previous CapRE Insider Reports covering earlier remarks by Porter and Williamson:
- There’s Not Just One Type of Crypto-Mining — What Kind Does Your Data Center Need?
- At Home Crypto’s Allan Williamson Talks the Future of Blockchain Data Centers
- Will Blockchain Mining Pools Operate as Decentralized Data Centers?
- Decentralized Cloud Storage: The Next Evolution of Blockchain Disruption?