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Crypto currencies have created something called triple entry accounting. Double entry accounting, invented in Florence in 1300’s has enabled debt which is the r
by adamnemecek 8y ago
Crypto currencies have created something called triple entry accounting. Double entry accounting, invented in Florence in 1300’s has enabled debt which is the reason the city flourished. I wonder what does triple accounting enable?
- therein 8y agoCan you elaborate? How did they allow that? What is triple entry accounting?
- adamnemecek 8y agoBlockchain is triple entry accounting. You have anount, parties, and proof.
- therein 8y agoOkay so the entire ownership/txn history of that asset itself is accounted for, and that's what's triple entry accounting is. Got it.
- MR4D 8y agoCan you elaborate on how double entry accounting enabled debt? Debt existed way before Pacioli invented (borrowed?) double entry accounting. For instance, in the Bible, Proverbs 22:7 - “The rich rule over the poor, and the borrower is slave to the lender.”
- pdkl95 8y agoDebt existed several thousand years before money was invented[1]. Regarding the bible's many references to debt: note that it doesn't talk about inventing debt. The concept of debt - and the problems it creates - were already commonplace enough that for priests to add social commentary about debt into religious texts. Predating the book of Proverbs by ~700 years, Leviticus 25:8-13 discuses the concept of a "Jubilee" every 50 years where slaves/prisoners were freed and debts were forgiven. Double entry bookkeeping was a great idea that expanded many aspects of business and finance because it was a type of error detection for complex accounts that could be done - in the era before calculating machines - by hand using only addition. [1] See David Graeber's writings/talk for a good overview of the ancient history of debt and the invention of early forms of money from the need to standardize debts/payments/etc.