Comment by thisisit

Please spend sometime reading up on Enron before saying this. As it has been pointed out Enron's book was clean. The problem was mainly due to "Revenue Recognition" [1] and valuations. It basically describes when a revenue can be added on to the books. Enron booked it's revenue as soon as deal was booked. So, if they got 100 million deal for next 5 years, they should be booking 20 million each year. What they were doing was to show 100 million as revenue for this year. This is not a single entry as many people believed rather a series of credit and debits which always balanced.

The amazing thing is blockchain, specially things like Monero or Zercoin, makes it even more difficult to spot this as Enron would have been able to open accounts as they wanted.

I am writing a piece on blockchain transactions and I still don't understand how this triple account thing applies.

Let me explain how double accounting works - You and I have 100 in Bank A. The Bank A notes:

Bank's Liability to: You - 100

Me - 100

Total - 200

Asset for:

You - 100

Me - 100

Total - 200

When I pay you 50 out of it, the book shifts:

Bank's Liability to :

You - 150

Me - 50

Total - 200

Asset for:

You - 150

Me - 50

Total - 200

Both side in balance.

Now this book is obviously internal. Can you use this same example and explain how triple accounting works in blockchain?

[1]: https://www.investopedia.com/terms/r/revenuerecognition.asp