Tim Bouma on Nostr: The reason that double entry accounting took off like a rocket in the 15th century ...

The reason that double entry accounting took off like a rocket in the 15th century because it introduced the concept of ‘self’ into bookkeeping. In brief, a debit and credit is always in relation to an entity, and enables a balance sheet for that entity. Before that, the bookkeeping was inseparable from the bookkeeper and it was not possible to keep books on behalf of others.

The other important innovation is the self-validating accounting identity function: debits == credits for any accounting transaction. If you read Pacioli’s treatise on manual account he talks about the importance of making each transaction self-explanatory in the journal, before posting into the various accounts.

And if you’ve done your job right, Assets=Liabilities + Equity, if not, you’ve got a late night ahead of you.

All this to say, we’ve got all of the elements for #nostr to take off like a rocket.