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blockchain technology

Blockchain technology refers to a distributed ledger technology where the entries are made, saved, verified, and continued in order of transaction entry on each counterparty's secure computer system involved.

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blockchain technology

Blockchain technology refers to a distributed ledger technology where the entries are made, saved, verified, and continued in order of transaction entry on each counterparty's secure computer system involved.

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Each entry is related to the previous entry to ensure validity and immutability of the overall transaction. Essentially, the ledger is shared by all the parties to the transaction, and it allows all of them to see and verify the complete transaction and to avoid redundancy and inconsistency. Blockchain is the technology behind Bitcoin. It is also being used in certain financial services and banking sectors. It provides for a more secure way of doing direct business between peers and requires less human intervention. Using a common buzzword of today, it is a disruptive technology and has the potential to change the way certain business transactions are handled radically. It is also being used, at least as an experiment, for certain insurance-linked products, like natural catastrophe swaps. The insurance and reinsurance industry is interested in blockchain technology because it has the potential of reducing administrative workload, eliminating frictional costs, reducing, if not eliminating, inconsistency, and improving auditability.