

Triple Entry Accounting (2005) - jc123
http://iang.org/papers/triple_entry.html

======
seanstickle
As a fan of accounting, I hasten to point out that this is only one of a
couple of different triple-entry accounting schemes, which include:

* [Momentum accounting]([http://en.wikipedia.org/wiki/Momentum_accounting_and_triple-...](http://en.wikipedia.org/wiki/Momentum_accounting_and_triple-entry_bookkeeping))

* [Cryptographically-sealed triple entry accounting]([http://bitcoinmagazine.com/9969/triple-entry-bookkeeping-bit...](http://bitcoinmagazine.com/9969/triple-entry-bookkeeping-bitcoin/))

~~~
iang_fc
The first link above, "Momentum Accounting" is a very different use of the
term "triple entry". Arguably, it has a better claim to the use of the term
accounting because it is higher layer.

The second link is more or less the same thing as the posted paper, within the
bounds of journalism. Which concept probably has a better claim to the term
bookkeeping because it is lower layer.

Igor also describes the same thing, more or less, in a really good hacker's
guide to Bitcoin:

[http://financialcryptography.com/mt/archives/001499.html](http://financialcryptography.com/mt/archives/001499.html)

Where it gets interesting is whether Bitcoin can be considered triple-entry. I
think with a fair stab, yes:

[http://financialcryptography.com/mt/archives/001325.html](http://financialcryptography.com/mt/archives/001325.html)

But we will have to let the serious accountants and also historians have their
say on this one.

~~~
iang_fc
Darn it. That should be Ilya Grigorik's article here:
[https://www.igvita.com/2014/05/05/minimum-viable-block-
chain...](https://www.igvita.com/2014/05/05/minimum-viable-block-chain/)

------
thehammer
While it's interesting from an accounting perspective, it could revolutionize
payments. Imagine if you never gave your credit card number to a merchant,
only signed a receipt from them in a way that assured the bank that the
transaction was legitimate. PCI would be a non-issue since sensitive
information is never exchanged. It also opens all new ways to pay for things,
since the transaction could be submitted to the bank by either party (customer
pays vs merchant charges).

~~~
kordless
Uh, Bitcoin?

~~~
thehammer
Sure, but it doesn't need to be. The recipient doesn't need to care if the
payment is coming from a bank account or a cryptocurrency (as long as there's
a party to convert in between).

------
chaz72
What they consider to be the "third entry" is a cryptographically signed
receipt.

Is that a newly invented "triple entry" or is that just a better way to keep
track of the traditional "source documents"? (still a good idea, but maybe it
doesn't need a fancy new term)

~~~
stephengillie
It sounds like the latter with a lot of shock and awe about the mathematical
probability of authenticating the party who generated the source documents.

------
alien3d
I'm building software account.I quite understand what he about to mention.When
big company involve,the lot of passing layer from document a to document b.
Actually this was very infective upon implement.Performance very weak. In real
life,single ledger is more then people need.Double entry ledger for those
requirement MSAB,FRS,FS whatever. Another page saying triple accounting was
future transaction ? Sometimes Customer wanted simple application,sometimes
customer wanted super complex flow system.Kinda hard to fulfill every their
wishlist.

------
stephengillie
This looks like a technical solution to a business problem.

~~~
jamesrom
The best kind of solution.

------
jessaustin
(2005)

~~~
stephengillie
Knowing that this idea is nearly a decade old, and still not even briefly
mentioned in passing by university accounting professors, is a fairly good
indicator of the lack of value had by the idea. Whereas if it were generated
in the past year, we may be on the bleeding edge of acquiring and employing
this knowledge -- beta-testing it before experts in the accounting field have
had a chance to review that code.

~~~
jonathlee
Your interpretation, unknown due to lack of value, may be valid but is more
likely incorrect. Historically, ideas take a long time (decades or more),
before adoption. Some are simply not marketed on a wide scale, little exposure
causing little adoption/implementation. Other ideas, even though as equally
valid as ones that are adopted, are simply not implemented due to circumstance
(one excludes the other due to existing infrastructure, etc.). Others are
actively resisted (especially in the sciences, e.g. tectonics, ulcers due to
bacteria/viruses instead of stress). Please do not judge an idea based on its
age or lack thereof.

