Blockchain-Driven Financial Systems: Transforming Accounting Practices and Economic Structures

Abstract

The blockchain technology is revolutionizing financial systems through heightened transparency, security, and efficiency in economic practice and accounting. The article explores the revolutionary impact of blockchain on financial institutions, where decentralization, reduction of costs, and fraud prevention are among the key benefits. Blockchain in accounting has also introduced triple-entry accounting, self-executing smart contracts, and immutable ledgers that have significantly reduced errors and compliance risks. Economically, blockchain systems are transforming financial transactions, challenging conventional banking methods, and affecting monetary policies through the introduction of cryptocurrencies and Central Bank Digital Currencies (CBDCs). Regulatory challenges, scalability, and the risk of financial exclusion are issues that need to be overcome to achieve broad acceptance. This study offers a comprehensive analysis of the revolutionary impact of blockchain technology on accounting methods and economic systems, highlighting potential trends and policy recommendations for successful integration.