This article provides an introduction to the concepts of what is commonly referred to as “blockchain technology”.
Banks, institutions and even governments are looking at blockchain technology as a secure storage and distribution solution. There is growing demand to understand the implications of blockchain and how to respond to it.
While there is a debate on the role of bitcoins as a mainstream “currency”, the underlying blockchain technology, consisting of "blocks" of data in a digital ledger, is believed to be highly resistant to malicious tampering, thus offering significant advantages to governments, banks and the financial services sector in general.
The financial services industry is currently shifting to a higher gear when it comes to using Distributed Ledger Technology. In this chapter the following points are discussed:
"The internet revolutionised the way we exchange information. Blockchain is revolutionising the way we exchange value on the internet."
To help you understand what the blockchain technology is, we have covered it under six angles:
functioning and security functions
advanced applications - smart contracts
basic applications - virtual coins
blockchain applications and the trust model