5 Ways Blockchain Will Revolutionize The Insurance Ecosystem

Blockchain is often associated with Bitcoin (see footnotes below for links to articles on Bitcoin). Bitcoin is a new form of digital currency. Think of it like PayPal, except you don’t have to feed the account, dollars or pounds or pesos. The backbone of the system is a software platform called blockchain.

It is the blockchain that keeps track of who owns how many Bitcoins (or whatever digital currency or cryptocurrency you possess), how the currency is being transferred amongst users of that currency, along with timestamps of all transactions.

The blockchain is a sophisticated database that acts as the accounting ledger.

Now, if you are like me, you might shrug at all of this. What does a digital payment system developed by computer geeks have to do with insurance? For the better part of the year, I too struggled with this.

I kept reading articles about blockchain and insurance and couldn’t quite grasp how they were going to connect. It seemed like a classic ‘solution looking for a problem’ conundrum. And then one day, the light bulb turned on in my head.