The ability to quickly transfer, verify, and store information with a high degree of security is one of the key benefits of the Blockchain technology. Businesses depend on timely, accurate information that is not prone to tampering. Blockchain technology provides these features in an instant, transparent manner. For this reason, it has many uses, including the financial services industry.
Blockchain was first used in cryptocurrency. Its development helped prime the conversation around the technology. Today, it is used for numerous other applications, including health insurance and surgical billing. Blockchain technology can also be used for QR codes, data storage, and smart contracts. It can even help track health insurance claims in real time. The future of this technology remains uncertain, but its applications are growing rapidly.
It is important to understand how blockchain works before using it for your business. The technology was initially designed to support new forms of digital money. Satoshi Nakamoto proposed the technology during the financial crisis in 2008. This technology allows online payments and digital currency to occur without the intervention of a central bank. In this way, it eliminates the need for trusted parties, making the flow of value simple, fast, and secure.
As a result, it is important to know the legal definition of blockchain. This will help to deter bad actors. The SEC’s definition is likely to include permissioned blockchains, but it will also acknowledge the differences in consensus protocols. The SEC has an opportunity to clarify its definition through a brief, and the Federal District Court of the Eastern District of New York will have the final word. After all, the SEC definition of blockchain will set the tone for laws and courts pertaining to this industry.