Bitcoin, DLT and Bank Ledgers: A Central Banker's View

With the development of information technology, ledgers have gradually been digitalized and various types of accounting databases have emerged.

Each blockchain is a ledger, and there is no essential difference in the accounting sense from the traditional ledgers.

Just as traditional bookkeeping accounts for both balance information and flow information, the integration of the UTXO model and the account model provides information demanders with more complete, three-dimensional ledger information, and is becoming the current trend in the development of DLT ledgers.

Ensures consistency of distributed ledgers through transaction signatures, consensus algorithms and cross-chain technologies, and automatic completion of account-document matching, ledger matching, and account-reality matchingIt should be said that any entity has its right to perform bookkeeping and has its own account.

The same entity usually holds a variety of ledgers, for example, a company has cashier ledger, cash ledger, bank deposit ledger, inventory ledger, invoice ledger, operating expenses ledger, general ledgers, administrative expense ledger, accounts receivable ledger, fixed assets ledger, 17 column breakdown ledger, intangible assets ledger, paid-in capital ledger, etc.

Because ledgers are easy to be forged and falsified, the question how to protect and maintain the consistency of various "Distributed" accounts has become the key point of accounting and auditing.

The account reconciliation refers to checking and collating the relevant data recorded on the ledgers and accounts, so as to achieve the matching between account and document, between different accounts, and between account and real amount.

DLT first guarantees the matching account and document through transaction signatures.

The DLT ledger should have enough ubiquity to cover all types of accounting elements globally.

DLT not only reduces accounting costs and improves efficiency, but also allows the user to penetrate to the bottom of the business operation and obtain complete information, thus improving decision-making efficiency.