The Adoption of Blockchain Technology and the Future of Insurance
The concept of Blockchain is interchangeable with cryptocurrency, but this is not the complete picture. Although Blockchain enables the concept of peer-to-peer electronic cash systems, it is important to distinguish between Blockchain and cryptocurrency. The Bitcoin and cryptocurrency aspect of Blockchain allows distributed ledger technologies to be applied to enterprise systems, public databases, and emerging markets.
Blockchain as a business application is in it’s infancy. Blockchains and DLTs have seen the most growth and adoption in the financial services industry. Blockchain technology establishes trust by creating a decentralized and distributed network that shares a common record of immutable transactions linked together with hash pointers. Transactions are verified on the network by miners, usually incentivized by a rewards or fee system using consensus algorithms such as proof-of-stake or proof-of work.