Balanc3 is a self-described “triple entry” piece of accounting software, developed directly to be used with businesses that make use of the Ethereum blockchain in order to facilitate outgoing, ingoing, and internal financial transactions of a certain business.
What Is Balanc3?
Balanc3 is a product of ConsenSys, a “venture production studio” that focuses on using blockchain and blockchain-inspired technologies to create what it calls “spoke” ventures that are transparent and decentralized.
ConsenSys was founded by Joseph Lubin, who is described on the ConsenSys website as a former autonomous mobile robotics, machine vision and artificial neural network expert with electrical engineering and computer science degrees from Princeton University. Lubin continued to branch out and grow, founding ConsenSys and shepherding it through the development of several blockchain-inspired applications, with a specific focus on providing programming and infrastructure for the Ethereum digital currency.
Powered by smart contract technology, Balanc3 is a “triple entry” accounting system that uses blockchain technology to ensure the integrity of accounting records by using the Ethereum blockchain and decentralized data storage systems to not just construct and store documents but also to manage them and sign them digitally, and these documents can be as varied as invoices, employment contracts, and other types of business documents.
Because of the nature of blockchain-recorded data, using Balanc3 as an accounting method means that accounting records entered into its system are inviolate, ensuring accuracy in that they cannot be altered in any way – not even by the individuals who own and have full access to the system.
Balanc3 represents an opportunity for any high-profile business to access an accounting system, built on proven digital blockchain technologies, that is both completely transparent and unalterable. This provides support for any company using digital currencies to make and receive payments, especially in the current legal environment where digital assets are exist in an unlicensed state by governments both local and national.
Balanc3 is, quite likely, the first application of blockchain technology in an accounting setting that provides valuable, transparent, and completely unalterable records – or at least it’s the first one we’ve ever heard of. This makes parent company ConsenSys a bona fide innovator, and it proves once again that the underlying technologies that have paved the way for digital currencies like Bitcoin, Ethereum, and others have the potential to be useful for – as many government regulators have scornfully said – more than simply buying illicit goods on the black market.
What does this mean for the average consumer? Not much, except that you’re likely to see similar blockchain-powered services as Balanc3 emerging in the future. What does it mean for business professionals? Well it’s certainly going to be much harder to “cook the books” when you’ve got an unalterable blockchain preventing you from embezzling funds from your Fortune 500 company, that’s for sure.
If you have a business and you’re interested in learning more about Balanc3 or any of the other blockchain-based applications that ConsenSys is developing, we recommend contacting them directly.