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NODE40 is a blockchain platform for blockchain hosting and asset blockchain management. The NODE40 team will tell us more about this interview.
1) Tell us briefly about yourself.
Co-founder Perry Woodin Managing Director of NODE40
My interest in blockchain technologies began with the financial incentives that digital currencies use to encourage participation in the network – from early Bitcoin mining to Dash-boosted complete nodes.
Co-founder Sean Ryan – Chief Technology Officer of NODE40
For much of my career, I worked as a computer engineer in a range of industries including state government, universities, consulting and various non-profit organizations. My entrepreneurial debut began with the foundation of NODE40 with Perry Woodin. Receiving digital currencies from our customers meant that I really needed to understand the accounting for this new asset class. That deep immersion has led to our flagship accounting product.
2) What is NODE40?
We founded NODE40 in 2015, initially focusing on blockchain stability by hosting secondary incentive nodes, but we soon noticed a gap in the market where effective accounting software was needed for cryptocurrency investors.
NODE40 Balance was our response to the confusion experienced by those investing in cryptocurrencies and tokens when it came to calculating taxes. We have fine-tuned accurate accounting and reporting software for digital assets, allowing users to interface with their various trading accounts, view their profits / losses, annotate various transactions with useful information, and even generate automated forms. for the tax authorities
3) What is wrong with the tax laws related to cryptocurrency and the wider world of technology in the United States and beyond?
Generally speaking, legislators seem concerned about plumbing digital currencies into existing legal frameworks, without paying close attention to the complexities of the networks or tokens emitted on them. While the United States and European countries seemed to have made progress in this area in 2014, since then there has been little deliberation or fiscal orientation, leaving investors largely in the dark. A more appropriate approach would be to expand the rules of each regulatory authority to specifically talk about cryptocurrencies. Authorities also classify assets as a commodity, or security, or property, or the currency is not at the height of their own guidelines because conflicts may arise between them that may require the involvement of the court. Confusion is not only bad for the effective application of the regulations. It's bad for space participants to try to stay high, but inadvertently collide with some obscure rule in some agency.
4) Why is it important to clarify the tax laws on cryptocurrency?
Everyone is talking about mainstream adoption and there are some obstacles to be clarified before we get there – better UI / UX for portfolios and platforms, better scalability and institutional investment.
One of the biggest obstacles to widespread adoption, however, is undoubtedly an appropriate legal framework. Many investors and individual companies do not want to be involved when the tax status of cryptocurrencies and tokens is not clear, for fear of falling out of the way.
5) What mistakes do you see doing business and people with regards to cryptocurrencies?
The blockchain tells a very precise story about transactions. The biggest mistake we see people are trying to apply accounting methods like FIFO or LIFO ex post facto. Such commercial strategies are considerations to be made in commercial time, not fiscal time. For the sake of precision, it is important to use a service such as ours that produces a control trail of what actually happened on the blockchain for the backup of the fiscal position. Failure to properly report the transactions to the competent tax authorities is a setting for future headaches.
6) Would you advise people or companies to accept cryptocurrencies as payment?
It depends on the business model. For transactions that need to be confirmed instantly (for example in a cafeteria), existing methods like cash or paper could be better: solutions 2 are now being developed that allow almost instantaneous settlement. The payment channels, the Lightning network and the Dash InstantSend are some examples. For companies in the online sector, where instant transactions are not a priority, it is very easy to implement something like BTCPay to accept a myriad of cryptocurrencies – as long as these companies are willing to risk such volatile activity (although there are take-off ramps automated), as well). It may be much cheaper to make cryptocurrency transactions than traditional payment networks, but volatility makes it a poor unit of account, so budgets will need periodic adjustments when they include digital assets.
7) What do business executives know about cryptocurrencies?
Of course, I'm here to stay. Ten years have passed since the first Bitcoin block was extracted and cryptocurrencies have since seen an uninterrupted flood of innovation that works to make them faster, more scalable and easier to use. The denationalized currency reduces transfer fees and puts security in the hands of fund owners, as opposed to a third party like a bank.
They are not exempt from the law, however. Most of the regulations are ambiguous, so it's important to keep meticulous records, especially when you actively negotiate. Spreadsheets are often not at the height of the task, so cryptographic software is particularly recommended to keep track of inflows / outflows related to cryptocurrency, profits and losses.
Work with industry experts. As space matures, we are witnessing a greater number of individuals specialized in all aspects of cryptocurrency: accounting, taxes, legal, security and more. Business leaders should be aware of who these experts are and how to take advantage of their services.
8) Where do you see NODE40 in five years?
We will continue to build software that takes away the boredom and uncertainty from fiscal reporting in which cryptocurrencies are involved, constantly improving it to reflect what we hope will be a more focused legislative framework here and abroad. With this legislation, we expect our customers' needs to evolve and we want our platform to continue to be a leader in tax analysis within space.
Visit https://www.node40.com/ for more information.
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