The World Bank announced on August 10 that 70 years after its first bond transaction, it will be issuing the first bond to use entirely blockchain technology, in part to help the bank gain experience in the use of blockchain. The World Bank’s innovation lab partnered with the Commonwealth Bank of Australia (CBAUF) and Microsoft on this endeavor almost a year in the making.
Blockchain is a growing list of records, or “blocks” linked using cryptography and resistant to modification since it is essentially an open, distributed ledger that can record transactions between two parties efficiently and verifiable in a permanent way. This means that once data is recorded, the data in a block cannot be altered without altering all later blocks, which requires majority consensus of the network. Just imagine all the people around the world agreeing to verify a single block and all subsequent blocks!