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Author Topic: Bitcoin: TRIPLE ENTRY CROWD ACCOUNTING  (Read 9993 times)
molecular
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November 22, 2011, 02:34:16 PM
 #41

"Accounting period", as used in the finance industry and in business, means a month, a quarter, a fiscal year.
Accounting period can be any period. Accounting periods are not only those periods that are defined in IRS manuals... Every organization is free to define their own accounting periods to suit their internal needs. If you need reliable data for all financial transactions every minute then 1 minute can be the accounting period.

If you are familiar with the algorithm that miners run though, you'll know that's not the case.
Hmm... Well, I thought you have started this thread trying to abstractly describe Bitcoin in as few words as possible with terms that would make sense to those who are familiar with banking but not with technology? So, my short answer to your initial question is miners are like auditors and what they do is like reconciling data sets of financial transactions for 10 minute accounting periods.

I'm not sure the block finding duration is equal to any "accounting period". A transaction has a timestamp, that's when it should be considered to have been taken place. It can only be decided at a later point (with enough confirmations by miners) wether or not it took place.

On the transaction list my bank gives me, for example, there are two timestamps. One designating the point in time when the money flow was considered to be happening (relevant for calculating interest, for example) and the point in time the transaction was validated by or inserted into the system. The two can be different.

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November 22, 2011, 03:13:49 PM
 #42

On the transaction list my bank gives me, for example, there are two timestamps. One designating the point in time when the money flow was considered to be happening (relevant for calculating interest, for example) and the point in time the transaction was validated by or inserted into the system. The two can be different.
Of course, they can be different. The first one is date/time of value (i.e. when change of ownership took place) and the second one is date/time of accounting (i.e. when the corresponding record in the general ledger was made).

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November 22, 2011, 04:07:19 PM
 #43

The second date would be the posting date. Posting, meaning similar to recording or confirming. (As opposed to reconciliation. The second date is not necessarily the date your bank decided to redo the math to see if it added up, it is the date it was deemed recorded on your account.)

Companies claiming they got hacked and lost your coins sounds like fraud so perfect it could be called fashionable.  I never believe them.  If I ever experience the misfortune of a real intrusion, I declare I have been honest about the way I have managed the keys in Casascius Coins.  I maintain no ability to recover or reproduce the keys, not even under limitless duress or total intrusion.  Remember that trusting strangers with your coins without any recourse is, as a matter of principle, not a best practice.  Don't keep coins online. Use paper wallets instead.
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September 21, 2012, 04:26:12 PM
 #44

Bumping this great and useful thread.
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September 21, 2012, 06:22:38 PM
 #45

Bumping this great and useful thread.

yeah, i have to agree not being an accountant.
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September 21, 2012, 06:46:04 PM
 #46

This is like trying to explain a gas pedal to buggy whip manufacturers.

"The gas pedal stimulates the horsepower of the engine."

"No, no, it whips the engine into working harder."

Just give it up.

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September 21, 2012, 07:07:42 PM
 #47

This is like trying to explain a gas pedal to buggy whip manufacturers.

"The gas pedal stimulates the horsepower of the engine."

"No, no, it whips the engine into working harder."

Just give it up.

no, it serves a useful purpose.  of course you can take the position that it doesn't matter, Bitcoin is going to succeed one way or another eventually.  but if we as a collective can explain Bitcoin to skeptics in a coherent, clear manner that eventuality will come much faster.
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