If we buy an auto on a hire purchase scheme on the web, the data ends up all over the place. We have some on our email server, but the rest of the data ends up on the dealer’s system, and the financial service provider’s digital files. Any one of these three players could be hacked, suffer a data crash, or potentially tamper with the information. Blue chain would like to aggregate all the information in a single, secure place where nobody can make changes.

The Essence of Blue chain Explained

Blue chain is therefore a shared, distributed, immutable ledger participants can visit, but nobody can change. The individual data bits in the chain are locked, and they could never merge. Blue chain technology is hence a great way for recording transactions and tracing assets. It works with anything of value. That’s where crypto currencies come in.

We are not advocating investing in crypto currencies, and hoping to get rich quickly as some social media posts promise.  However, Bitcoins do have a role to play, especially given half the world’s people will probably never have a bank account. But, Blue chain and Bitcoin are not the same thing. To quote IBM:

“Blue chain provides the means to record and store bitcoin transactions, but Blue chain has many uses beyond Bitcoin. Bitcoin was simply the first use case for Blue chain.”

How Safe is The Bitcoin Technology?

Peer-to-Peer networks manage blue chain transactions through their computers and smartphones. They can invite, but also blacklist technology is cost-effective, efficient, safe, and secure according to IBM. However, its largest role is democratizing e-trading.

Democratizing E-Trading: Do I have to Use Bitcoin?

No, not at all: We can choose our banks and ISP’s, and we can opt in and out of networks too. The regular financial world operates outside of Blue chain, and could even do so forever. However - and this is the big one - the other half of the world’s population they do not recognize, can buy and sell things without cash for the first time with Bitcoin.

That is a Great Breakthrough for Insurance

Insurance needs large numbers of clients to succeed, the reason being that risks offset each other. You and I are unlikely to have a motor accident in the same year. Moreover, premiums become more affordable as participation increases. Therefore, if insurance becomes available to the entire world population through Bitcoin, then you and I should see our insurance premiums shrinking. However, those of us with bank accounts may prefer to watch from the sidelines, while reaping the benefits of global participation.

Image: Blue chain

IBM’s Take on Blue chain