Proposed TED Talk for High School Freshman: Ledger Innovation

I recently was asked to present for a second time about my career to a local high school freshman class, and wondered if I could make the subject matter interesting. So I spoke in the form of a proposed TED Talk on financial systems and ledgers. I talked about how computers have changed the world in the course of my lifetime; I asked them for … Continue reading Proposed TED Talk for High School Freshman: Ledger Innovation

Blockchain Gap: Trust and Efficiency

I’ve taken a few weeks break from the blog, considering what to do next about financial systems. Today’s video though makes clear the major gap I see in blockchain. Trust is at the core of the efficiency of today’s financial and business systems.  But blockchain, as developed by Bitcoin, is premised on a “trustless” system. One of the significant promises of blockchain is greater efficiency. … Continue reading Blockchain Gap: Trust and Efficiency

Blockchain Gap: Posting Process

We’ve discussed the blockchain gaps of liquidity management, double entry accounting, and reporting integration.  This week’s episode discusses posting processes. The purpose of posting processes is almost forgotten in today’s world of ubiquitous computing.  But they are still used in nearly every major business process–every ledger–to state a position as of a point in time. All analytical processes begin with a balance, with a position. … Continue reading Blockchain Gap: Posting Process

Blockchain Gap: Reporting Integration

Today’s episode is in response to a question from Steven Ulmer about the challenges of reporting using Blockchain. The development of papyrus in ancient Egypt was a breakthrough technology, but today if one needs to write a contract or record transactions in a ledger, it’s not that expensive to buy a piece of paper. Deciding what to write down is much, much more expensive.  It … Continue reading Blockchain Gap: Reporting Integration

Blockchain Gap: Double Entry Model

Almost everyone knows that accounting deals with debits and credits; but many fewer people know what the purpose of those are.  The purpose of a ledger was to show a position as of a point in time–and it does this through the use of balances.  Balances show how things stand at some particular point. But a ledger is not a static thing.  It changes all … Continue reading Blockchain Gap: Double Entry Model

Blockchain Gap: Liquidity Management, the Core of Banking

Banking at its core is the process of matching illiquid loans against liquid deposits. Blockchain is very focused on tracking individual items, perhaps loans for example; probably less on tracking individual deposits. Yet this process of matching illiquid loans against liquid deposits does not start by matching loans and deposits individually; one has to assess what the problem looks like in total. Blockchain adds nearly … Continue reading Blockchain Gap: Liquidity Management, the Core of Banking