How is the current balance of an account computed by systemaccounting?


The balance of any account is computed similarly to how programmers build the most recent version of their code using revision control. Instead of building from all the changes in a codebase to determine its current version, systemaccounting sums all the transactions comprising an account's history to determine its current balance:


R = the sum of all transactions where a user was on the revenue side,

E = the sum of all transactions where the same user was on the expense side.


R - E = the current balance of a user's systemaccount.

While lines of credit may be offered between users, negative balances are not possible because systemaccounting is not a lender; it's an app that is designed to define and record the acceleration of value.

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