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This invention describes a way for an online accounting service to keep track of a business's financial records so that no one can secretly change them. For every new entry in the accounting books, the service creates a special digital tag using a secret code that changes over time. This tag allows the service to later prove that the order of entries hasn't been messed with. The system is specifically designed for a network-based accounting service managing journals for a merchant.
Why it matters: The general demand for verifiable, tamper-proof financial records has significantly increased since 2018, partly driven by the maturation of blockchain and distributed ledger technologies. This patent offers a centralized, cryptographically robust approach to achieving similar data integrity for accounting journals, which might be more practical for many businesses than a full DLT implementation.
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