Blockchain Technology Perhaps in response to the 2008 global financial industry crash, a person, or an entity, named Satoshi Nakamoto developed a protocol for a peer-to-peer electronic cash system. That protocol became the foundation for distributed ledgers called blockchains. Blockchain is a bit like a global spreadsheet or ledger. It does not have a central database; instead, it runs on computers provided by volunteers around the world. A blockchain is public: anyone can view it at any time because it resides on the network, not within a single institution. A blockchain is encrypted and it uses public and private keys to maintain a sort of virtual security. A blockchain allows a person to safely send money to another person without going through a bank or financial services provider. Many in the financial services industry refer to blockchain technology as distributed ledger technology. And some see blockchain as a more reliable database than their existing databases. As digital money becomes increasingly widespread, and coupled with an estimate that more than 50% of the world's population owns a smartphone, some believe that blockchain technology will supplant the banking industry’s old technology. This new financial technology partnership could be the pathway to widely available digital financial products. Governments are starting to pay attention to cryptocurrencies. In 2015, the U.S. Commodity Futures Trading Commission decided that Bitcoin, and other virtual currencies, should be properly defined as commodities.