Blockchain technology is hard to ignore as practically everybody\u2019s talking about it. That\u2019s understandable because it\u2019s predicted to disrupt the value flows that underpin business transactions and economies as well as create new business models. It has enormous power to solve business problems. But is a blockchain \u201cdistributed ledger\u201d secure?\nBlockchain is still in its infancy, so company leaders are naturally concerned about whether it can be manipulated. Organizations worldwide are seeking to take advantage of the new opportunities and disruptive power of blockchain \u2014 organizations that understand the magnitude of potential security issues. It has been rigorously tested in pilots and at scale by many governments, institutions and companies that have found the technology is incredibly secure.\nHere are some of the most notable entities that have examined blockchain and are now moving to adopt it.\nGlobal banks and financial institutions. Everest Group\u2019s market research finds more than 60 global banks and financial institutions are researching, experimenting or working on blockchain-enabled applications and use cases.\u00a0\n\nUK\u2019s central bank. The Bank of England\u00a0conducted a proof of concept (POC) to identify blockchain\u2019s real potential from hype. The bank has since confirmed that an upcoming version of its main interbank payments system will be compatible for settlements in blockchain-distributed ledgers.\n\n\nQatar\u2019s commercial bank. Qatar\u2019s Commercial Bank, together with regional partner banks in Egypt, India, Oman, Turkey and UAE, completed a blockchain pilot for processing international transfers. The pilot confirmed increased transactional security as well as accuracy. Commercial Bank is now looking to extend the network to banks in other countries. It also will conduct the second phase of the project, shifting the focus to legal and trade documents.\n\n\nChinese financial institution. The People\u2019s Bank of China conducted a trial of blockchain technology for digital currency transactions. After investing significant resources testing the technology, the bank announced its support for blockchain.\n\nGovernments.\u00a0Government entities in the U.S. and around the world have also been evaluating blockchain\u2019s security and benefits.\u00a0\n\nState of Arizona. Last month, the state passed a bill granting legal status to blockchain smart contracts. The bill states that \u201cA record or contract that is secured through blockchain technology is considered to be in an electronic form and to be an electronic record.\u201d\n\n\nState of Nevada. Similarly, Nevada is creating a legal basis for blockchain and smart contracts. A Senate bill proposed two months ago says that no entity shall impose requirements inhibiting the use of blockchain and smart contracts.\n\n\nState of Delaware. The state\u2019s government has been evaluating blockchain smart contracts for settling stock transactions. Delaware\u2019s blockchain trials are viewed as relevant to overhauling systems in Wall Street institutions.\n\n\nUkraine. Ukraine has announced it will deploy a blockchain to track the sale of state assets. The country\u2019s central bank also announced it plans to create a blockchain-based currency.\u00a0\n\n\nDubai. Having finished its security and accuracy testing of blockchain in the areas of health records, land title transfers, business registration, tourist engagement and shipping, Dubai\u2019s Global Blockchain Council is awarding millions of dollars in venture capital to companies interested in accelerating blockchain. Dubai also plans to have its city government be the first blockchain-powered government in the world.\n\n\nCanadian proof of concept. Peer Ledger (a Canadian blockchain company), SAFE-BioPharma Association (which manages the global SAFE-BioPharma digital identity management standard) and Synchronoss (a provider of standards-based digital identities) jointly conducted a proof of concept to test the security of digital identities engaged in a blockchain distributed ledger transaction. The POC proved that entities in the blockchain can extend SAFE-BioPharma-compliant credentials to the blockchain, and when needed, de-anonymize blockchain identities to trusted identities.\n\nSupply chains. EY has been testing blockchain for supply chain management. Their finding? Blockchain breaks down \u201cislands of information\u201d among entities in a supply chain without compromising security and privacy. Private blockchains accommodate shared information and private information together in a shared governance model.\nBitcoin.\u00a0One of the most secure examples of blockchain is bitcoin. It\u2019s a well-publicized fact that some exchanges for buying and selling bitcoin currency have had security issues. But blockchain \u2014 the underlying technology for all digital currencies \u2014 has never been manipulated to date.\nWhat makes blockchain secure?\nCryptography secures the records in a blockchain transaction, and each transaction is tied (in the chain) to previous transactions or records. In addition, the transaction records are distributed among and viewable by all participants of a blockchain distributed ledger. An attempt to tamper with the data would require that the hacker also change all the previous records in the blockchain.\nMoreover, blockchain transactions are validated by algorithms on the nodes (computers in the network of participants in the distributed ledger). A single entity cannot create a transaction. Finally, blockchains provide transparency, giving each participant the ability to monitor the transactions at any time.\nParticipants can opt to set up a private or public blockchain. A private blockchain limits the number of participants that are verified and trusted.\nQuite frankly, aside from someone cracking the cryptology, blockchain is one of the most secure digital capabilities available.\nAs happens with adoption of any new technology, some organizations are more willing to experiment with small projects and deal with the calculated risks as they evaluate the potential benefits. These early adopters often become market leaders, so it\u2019s worth monitoring the results of these leading-edge organizations\u2019 evaluations of blockchain.