"Given the evolving landscape of digital currencies and blockchain technology, explore the potential impact of these innovations on traditional financial accounting practices.

**Part A:**

Examine the challenges and opportunities faced by companies in adopting cryptocurrencies like Bitcoin as a means of transaction. Discuss the implications for revenue recognition, valuation, and financial statement presentation when dealing with cryptocurrency transactions. Analyze the volatility of digital currencies and its impact on financial reporting, especially concerning fair value measurements and impairment testing. Delve into the regulatory considerations and accounting standards relevant to cryptocurrencies, and evaluate their effectiveness in addressing the unique accounting issues posed by digital assets.

**Part B:**

Analyze the role of blockchain technology in revolutionizing financial transactions and auditing processes. Explore how blockchain ensures the integrity of financial data through its decentralized and transparent nature. Discuss the potential applications of blockchain in areas such as supply chain finance, smart contracts, and audit trails. Evaluate the challenges and benefits of implementing blockchain-based accounting systems, considering factors like security, privacy, and interoperability with existing financial systems. Provide recommendations for companies looking to leverage blockchain technology in their accounting practices while ensuring compliance with regulatory requirements and maintaining the integrity of financial information."