Blockchain technology underpinning Bitcoin created a consensus-based distributed ledger system secured by cryptography. It has turned the concept of smart contracts into a reality to start a social experiment of a decentralized economic and political order with an endless number of potential use cases of blockchain.

As a young technology, Blockchain has faced a number of practical issues in its application on a large scale and, given the disruptive nature of the technology, it has raised many regulatory concerns. Given its potential for enormous social benefits, however, it has attracted the attention of many corners of the society and its development and application are advancing rapidly.

This In Depth piece is based on a keynote address to the Accounting Committee at this year’s Annual General Meeting of the International Swaps and Derivatives Association on April 24.