“Blockchain is a technology,” Harvey explained. “It is a distributed ledger, which means it can be quickly and easily accessed by many.” He also said that blockchain “is immutable, which means you can only add to it, but not alter history. And it is cryptographically secured.”

Based on accessibility, blockchain is divided into public and private blockchains. While public blockchains do not require trust to access — they are open to all — access to private blockchains is restricted and trust is required. The distinction becomes very important in blockchain’s applications.

Harvey believes blockchain can solve many problems, but that it is particularly good at two broad types of applications: verification and efficient exchange of ownership.

Bitcoin is a public blockchain that has exactly those two features. The public nature of the ledger ensures transparency. Ownership can be verified on the network, as all past transactions are stored on the network for all to see.

Bitcoin is also a testament to blockchain technology’s security, which is critical for storing and transferring value. Each “block” of transaction data on the bitcoin network needs to be accepted by the later blocks in the chain. The process has ensured that “hacking” bitcoin, say, by altering historical transaction data, is not even remotely feasible.

Per Harvey, the probability of successfully altering transaction data on the bitcoin network is about 1/1000th the odds of winning two Powerball jackpots in a row!

Harvey thinks blockchain will transform the financial services industry by cutting out the middleman. Financial institutions are frequently referred to as financial intermediaries, and those intermediation activities are the ones that Harvey expects to be disrupted first. But it does not stop there. The payment business provides a good case study.

In the traditional banking setup, money is transferred from one customer’s account to another via the payment networks that banks belong to. Blockchain threatens to change all that by enabling what Harvey calls “machine-to-machine payment.” When two machines are connected through blockchain technology, they can make instant payments to each other. More broadly, these machines can receive real-time financial statements for transactions performed with any other machine connected to the same blockchain.

And it does not stop there. Harvey cited property markets and digital currency issued by central banks as examples. The former make title insurance obsolete, and the latter has tremendous potential to reduce money laundering activities. Machine-to-machine payment may even help counteract spam emails and DDoS attacks.

There are significant regulatory hurdles and substantial time and effort are required to develop and implement practical applications. Harvey remains optimistic, however. As he closed his presentation, he declared that “blockchain is not going away.”