McKinsey defines blockchain as a distributed register to store static records and/or dynamic transaction data without central coordination by using a consensus-based mechanism to check the validity of transactions. The technology, which grew out of the online currency Bitcoin is suited for applications requiring transparency on records with a permanent time and date stamp, such as titles, document histories, and notary services. On the insurance side, Allianz piloted a blockchain-based smart contract that automates catastrophe swap transactions, and other insurers including AXA and Generali are investing in blockchain applications, McKinsey says.