One of the biggest areas where blockchain technology could have a huge impact for investors in the future is the development of GAAP-based distributed accounting systems that integrate online transaction ledgers built on blockchain technology to maintain the books and records of public companies. Accounting ledgers based on blockchain technology would increase financial transparency, provide 'real-time' financial reporting and improve corporate fraud detection.
Enron, WorldCom, Lehman Brothers and Saytam are all dark moments in corporate history. One way or another, they all cooked the books to hide their true financial position, at the expense of investors, customers, and sometimes, the tax payer. Could the blockchain be used to stop corporate fraud?