Blockchain is an innovative method of securing established activities by virtue of its decentralisation and ability to defer fraud and misduplication. There are a myriad uses for blockchain apart from safeguarding crypto currencies and here are some examples of those uses, some of which are already being applied, some of which are proposed and some of which may be proposed in the not too distant future. Listed in alphabetical order.
Automatic Payment Systems. Setting up automatic payment systems such as utility bills payments or other regular payments.
Decentralised Markets. A decentralised market allows trading without the intervention of a third party thereby reducing the risk of misduplication, costs and improves security. Distributed cloud storage. Reduces the cost and risk of identity theft and duplicated data.
Encrypted messaging. Messages can be encrypted and placed on the block chain and used in legal cases since they cannot be interfered with once placed on the blockchain.
ID storage and validation. Establishing ID which then cannot be changed or falsified.
Inventory. Recording and listing stock. This can save a lot of time and costs especially when there are multiple stock takes in different branches required.
Loan and Security Settlements in Banking Replacing the slow and expensive paper trail currently in use that can take days to complete.
Notaries. Providing a record of a notary that cannot be falsified or changed once entered in the blockchain.
Post trade clearing and settlements. It is estimated banks can save 10 billion dollars a year by changing to a blockchain for post trade clearing and settlements. Many banks are piloting this as we speak.
Proof of ownership. Ownership of goods can be established authenticated and tracked and once in the block chain there is no question as to the authenticity of the record.
Publishing. One of the big issues in publishing is the ripping off of published works. Recording one's works on a blockchain ensures that the rightful ownership of those works is firmly established at the outset and any later claim can be proven to be false.
Real Estate. Recording and registering of real estate transactions and deals.
Smart Contracts. Smart contracts are Smart Codes encode or establish business rules in a programmable language onto the blockchain and are enforced by the participants of the network. For example, the code can be established to directly interact with how money flows. Whereas a normal transaction will allows you to send money from A to B, a smart contracts can set the criteria that you can only send money from A to B, on the condition that C occurs.
Stock exchange where settlements can be instant rather than take days and be subject to after the fact queries. Some stock exchanges are investigating the potentialities of blockchain in this quarter.
Tracking Diamonds and other precious items. Providing a decentralised database where anyone can verify a diamonds authenticity. The same could apply with other precious gemstones and even for precious metals.
Trade finance. Reduce the expensive and time consuming paper trail currently used.
Voting. Reduce the risk of fraud in voting by using a blockchain to record each vote when is then established and cannot be later altered.
To name but a few.
The above are just a few of the possibilities. Others include an improved ethical standard in various industries, such as non-profit for example, travel transactions, Education, Reduction in banking fees due to increase competition in banks utilising blockchain and many more.
Blockchain is the future not just of fintech and business but also in a many other areas of our daily lives.
This article is for information purposes only and is not to be construed as financial information for any purposes such as investment or speculation and it is the responsibility of the reader to perform proper due diligence before acting upon any of the information provided. We recommend that you consult with a licensed, qualified investment advisor before making any investment decisions.