Letter of the CEO: The Future of Accounting
Hi Intrachain Community,
I hope you enjoyed our latest blog series on the Future of Accounting. In this post, I want to elaborate on my opinion on this topic and explain why our software operates on an Ethereum Blockchain.
As I stated in my last letter to the Intrachain Community, my vision is to drive the digitalization of accounting further in order to make reconciliation work in accounting obsolete with the help of blockchain. The manual adjustment process of faulty accounting transactions is costly in terms of time and money, unnecessary, as well as simply unsatisfying. With Intrachain it is my long-term goal to penetrate the accounting market to such an extent that accounting is handled on blockchain.
Even though, the accouting sector was one of the first to be digitalized, this revolution is nowhere near completion. One part of accounting which still lacks full automation is, for instance, intragroup reconciliation. Currently, automated reconciliation functions fully automated only up to 80 to a maximum of 90 percent due to manual correction loops, for instance. Consequently, the reconciliation process is not entirely automated. The manual interactions take time and increase the cost of execution of projects and tasks, which inevitably results in bad financial performance of companies.
Against this background, taking accounting to the next level and tackeling the problems that still persist is Intrachain’s main goal. Intrachain offers a higher degree of automation: all process steps that are currently still manually initiated are automated. An automated solution that revolutionizes the world of accounting.
We are introducing Intrachain — a process mining software with integrated blockchain for intercompany cost allocation and transactions.
Ethereum vs. Hyper Ledger
When we founded Intrachain, we had to decide on which open source platform to operate on. Two of the leading platforms in this space are Ethereum and Hyper Ledger. People often assume that we use Hyper Ledger as our platform. But why is Ethereum our platform of choice?
Comparing Ethereum to other open source platforms such as Hyper Ledger, Ethereum obviously offers a variety of benefits. Ethereum is one of the leading and most used platform because of its benefit of a blockchain platform with a built-in abstraction layer, which serves to unify the ecosystem. Further, Ethereum offers the tantalizing promise of one chain to rule them all, or at least one chain to act as the foundation. Our Intrachain software operates on an Ethereum Blockchain mainly out of the simple reason of maturity.
Hyper Ledger offers many advantages and an incredible technology which could be interesting also for Intrachain. The main benefit of Hyper Ledger is that it is designed to support pluggable implementations of components delivering high degrees of confidentiality, resilience and scalability. Its architecture is modular and provides a lot of flexibility in many different use cases.
However, Hyper Ledger is currently still in the incubation phase and is therefore in comparison to Ethereum not yet fully developed. Once all current challenges and hurdles of Hyper Ledger are solved and improved, a future transition from Ethereum to the high-potential Hyper Ledger platform is conceivable.
But until this is the case, we want to use the best platform that is currently available, which is why our choice is Ethereum.
Stay tuned to experience up close how we will put my vision into action and thereby revolutionize the accounting world once and for all.
Next week’s blog will be dedicated to the topic Smart Contracts, followed by the first Letter of our Core Developer who elaborates further on this topic. Stay tuned!
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