The digital roadmap is continuously evolving, as information technology embeds itself in both business and everyday life. The invention of the Internet has redefined the way we communicate on all levels, making everything easier, faster and cheaper. Disruptive information technologies pinpoint weaknesses and change old business models most companies and national authorities have grown accustomed to. Following the increasingly digitised business economy, in which almost everything can be ordered at the tap of a smartphone and transactions are routinely processed and analysed in real-time, it can sometimes feel like the tax system is stuck in analogue.
This article aims to guide you through the fundamentals of blockchain technology and tax, striving to connect both worlds and explore potential synergies.
Introducing Blockchain Technology
In 2008, the Internet quietly welcomed a mysterious white paper, written by a person or persons under the pseudonym Satoshi Nakamoto. The publication described a new, digital currency based on the idea of cryptographically chaining blocks of data, designed to rely solely on computer technology, detached from any intermediaries. This was the dawn of Bitcoin. For years, Bitcoin grew in popularity and value, but the underlying technology called blockchain remained largely unnoticed or associated strictly with Bitcoin. Nowadays blockchain has evolved from being a quiet presence behind Bitcoin to a technology that could…
