Vincent D’Agostino, associate managing director with K2 Intelligence’s U.S. Cyber Investigations and Incident Response practice, discusses “How Banks Can Leverage the Bitcoin Infrastructure: AML Expert Calls on Financial Institutions to Take Advantage of Blockchain” in a podcast with Bankinfosecurity.com.
Blockchain, the main technological innovation of Bitcoin, stands as proof of all the transactions on the network, providing chronological order with every block containing a hash of the previous block. To use conventional banking as an analogy, the blockchain is like a full history of banking transactions. Bitcoin transactions are entered chronologically in a blockchain just the way bank transactions are, with blocks akin to individual bank statements.
According to Vinny, “The blockchain provides a digital signature that can be used to authenticate documents. You can hash a document, you can authenticate it through the digital signature, and those documents then become part of the blockchain; and if someone were to alter those documents in any way, it would invalidate that hash and you would know it’s a fraud.”
Hear the full podcast.