Announcing Balanc3: Quickbooks for Token Launches
Balanc3 — a ConsenSys formation — has been working in stealth for over a year to build out a blockchain-based accounting platform. We have brought together leaders in both the accounting and blockchain industries to inform the design of our product. What we’ve built is a flexible set of utilities that are built to monitor on-chain transactions and transform that data into the traditional accounting formats needed for reporting and compliance. The resulting technology is a user-friendly bridge between the token world and traditional accounting systems.
Financial Accountability for Token Sales
As the blockchain ecosystem of decentralized applications, token sales, and token holders grows there is increasing need for financial transparency. Much like public companies that have their shares traded on secondary markets, tokens of decentralized applications are also traded on secondary markets. However, public companies are required by regulatory bodies to report to their investors and have their financial statements audited to quell the possibility of fraud. Balanc3 has developed the tools to provide this level of financial transparency for stakeholders in the blockchain industry.
New Opportunities + New Pain Points
Currently, applications which rely on managing and tracking token transfers in Ethereum face difficulties in linking their on-chain interactions to traditional reporting and compliance processes. These groups are seeing explosive growth as the ecosystem rapidly matures, but cryptocurrencies and token transfers are an entirely new type of interaction which do not naturally fit into legacy accounting systems. As a result, product owners and CFOs face difficulties in accounting for internal operations and ensuring tax compliance. Our platform gives users the ability to track cryptocurrency transfers and compile live financial reports which translate this data into formats that are well-understood by accountants and regulators. Balanc3’s foundational infrastructure for viewing and managing blockchain interactions will enable automated interplay between modules such as invoice tracking and payroll management in future releases.
The Accounting Blockchain Coalition
The Accounting Blockchain Coalition is an initiative started by Consensys’ Balanc3 team which empowers its members to gauge the impacts that blockchain technology brings to the accounting industry and drive innovation. Coalition members include accounting firms, accounting associations, standards setting bodies, regulators, law firms, investors, and blockchain innovators. The members partake in monthly calls to educate each other on best practices around blockchain for the accounting industry, focusing on topics like valuation, financial statement presentation, and legacy systems upgrades. Five ABC working groups were announced at the ABC Conference in June, which was attended by over 400 accounting and blockchain professionals at Microsoft Technology Center.
- Token Standards for Assets
- Assurance of Blockchain Companies
- Taxation of Digital Assets
- Digital Asset Management
- Enterprise Resource Planning (ERP) Systems
These working groups and the professionals involved will be setting the accounting guidance and standards around the accelerating blockchain industry.
Our Team
The Balanc3 team brings together an experienced group of blockchain engineers, accountants, executives, web developers, legal professionals, and entrepreneurs focused on driving innovative solutions and transparency in this emerging industry. We spend our time laser-focused on building robust and secure data streams, an intelligent accounting platform, and beautiful web and mobile apps for our industry partners and customers. As the space matures, we look forward to sharing our platform with the crypto community, the accounting industry, and wider world.The team continues to grow quickly with support from the greater ecosystem within ConsenSys and beyond. Join us.
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Disclaimer: The views expressed by the author above do not necessarily represent the views of Consensys AG. ConsenSys is a decentralized community with ConsenSys Media being a platform for members to freely express their diverse ideas and perspectives. To learn more about ConsenSys and Ethereum, please visit our website.
