In a blockchain, each block is “chained” to the previous one in a peer-to-peer data sharing network.

We’ve all heard the buzz about the potential applications of blockchain technology. But what’s actually happening in developing countries in Asia and the Pacific?

Beyond bitcoin payments and remittances, blockchain exists largely in the pilot stage. Governments and banks are collaborating with technology firms to see if it can be used to solve persistent problems like traceability, identification, and trust.

Let’s bring some clarity to the hypotheticals. But first, what exactly is blockchain? It's a type of database that takes records and puts them in a block (akin to, say, a sheet in your Excel file).

Each block is then “chained” to the previous block, using a cryptographic signature. This allows blockchains to be used like a ledger, which can be shared and corroborated by anyone with permission.

In short, it’s peer-to-peer sharing of data – it does not require a trusted intermediary.

Read the blog post

https://www.asiapathways-adbi.org/2017/07/blockchain-pilots-making-waves-in-developing-asia/

https://blogs.adb.org/blog/blockchain-pilots-making-waves-developing-asia

Authors

Alisa DiCaprio, ADBI research fellow

https://www.asiapathways-adbi.org/author/alisa-decaprio/

Steven Beck, Asian Development Bank head of trade finance

https://www.asiapathways-adbi.org/author/steven-beck/