Martin is using a technology that enables insurers to share fraud-related information securely without a third party. This distributed digital ledger is called

Martin is using a technology that enables insurers to share fraud-related information securely without a third party. This distributed digital ledger is called

• A. Blockchain.
• B. A predictive model.
• C. The Internet of Things.
• D. Telematics.

Answer: (A)

Blockchain is a distributed ledger technology that lets many participants maintain a shared, tamper-evident record of transactions without relying on a central intermediary. In this setup, data about fraud can be added in blocks and verified by the network through a consensus mechanism, so every insurer has an up-to-date copy and trust is established through cryptographic links rather than a single gatekeeper. This enables secure, transparent sharing of fraud-related information while preserving integrity and auditability. The other concepts don’t fit this use case. A predictive model analyzes data to identify patterns of fraud but doesn’t serve as a shared ledger. The Internet of Things refers to interconnected devices collecting data, not maintaining a shared ledger. Telematics involves vehicle data for usage-based information, again not a decentralized ledger for fraud records.

Blockchain is a distributed ledger technology that lets many participants maintain a shared, tamper-evident record of transactions without relying on a central intermediary. In this setup, data about fraud can be added in blocks and verified by the network through a consensus mechanism, so every insurer has an up-to-date copy and trust is established through cryptographic links rather than a single gatekeeper. This enables secure, transparent sharing of fraud-related information while preserving integrity and auditability.

The other concepts don’t fit this use case. A predictive model analyzes data to identify patterns of fraud but doesn’t serve as a shared ledger. The Internet of Things refers to interconnected devices collecting data, not maintaining a shared ledger. Telematics involves vehicle data for usage-based information, again not a decentralized ledger for fraud records.