Blockchain: Where is the insurance industry converges?

Today, blockchain has become a must-have topic as companies accelerate their digitalization process. The 2008 financial crisis is a key factor in understanding the craze for this new technology.
Beyond the economic catastrophe and market instability, from 2008 onwards, developers turned to innovative technology to create algorithms capable of tracking the origin of transactions in an unfalsifiable way. If the French insurance industry is interested in this new technology, it’s because it promises profound and revolutionary changes in transaction management. It enables transparent and secure transmission and storage of information, thanks to an innovative computer system organized as a peer-to-peer network. A set of computers, called “nodes”, are interconnected. Each node keeps a copy of all transactions.

Blockchain is defined as a “distributed ledger”.

Time has a fortiori changed our philosophy. Looking at the major fintech operators, we see that it’s not a question of changing the current system. On the contrary, we need to streamline the system and make it more secure. We need to enable dialogue in an
interconnected world. At the heart of blockchain, the R3 consortium brings together a large number of financial institutions that are asking to be developed.

Blockchain principales

Blockchain is a sequence of blocks, each of which is a structure that groups together a certain number of transactions. They are created and managed by a separate, cloud-based network governed by rules agreed between its members. The Blockchain provides a shared register for recording the desired transaction and tracking the movement of an asset of a tangible nature (land, house, car, cash…) or an intangible one, namely intellectual property items (patents, copyrights or digital).

Transactions in a blockchain are aggregated into chained digital blocks. In this data structure, validated transactions are integrated into blocks that have a “unique” identifier depending on their content. A signature is obtained by means of a hash fingerprint. Each block contains the signature of the previous block in the chain, guaranteeing the integrity of all records and data on the blockchain since the first block.