Welcome back to Flash Learn!
This week we are here to see six blockchain use cases where the technology will be truly disruptive.
To find our answer we have used the McKinsey blockchain report and put the main findings below for you.
As seen last week, the main benefits of blockchain are transparency, immutability, security via cryptographic functions, thus increasing efficiency. Blockchain technology allows transactions of value and verification without a third party.
The use of blockchain technology can be divided into six use cases in 2 categories:
1. Static registry
- Blockchain enables a distributed database, for storing reference data, without counterfeiting. Blockchain ensures the necessary immutability via its technology to keep crucial information safe. It could serve land, patent and origin registries. For example, the National Agency of Public Registry of the Republic of Georgia, called Exonum is using the static registry function of the blockchain to secure land registry records.
- These registries are similar to a static registry, but constitute a separate category with a wide array of use cases. These functions on the blockchain mean registration of identities, voting, personal information, and qualifications. They enable faster and safer storage of identities and ease up verification processes. Several blockchain-based companies are providing this services, such as Civic.
3. Smart contracts
- Smart contracts built on top of a blockchain allow two parties to establish a contractual agreement. All the necessary conditions are recorded within, and the contract will be executed automatically when the criteria are met. This allows for plenty of new possibilities in insurance, escrow accounts, protection of intellectual properties. For example, insurance companies as Swiss Re, Aegon, Allianz and more have created B3i, the Blockchain Insurance Industry Initiative to help put blockchain in use and serve clients better.
4. Dynamic registry
- A blockchain database with instant updates all over the network, visible to all the parties involved. This is a revolutionary possibility for managing supply chains. Blockchain allows to connect an entire network of companies and track a product from farm to customer. For example, IBM has formed the Food Trust, where food manufacturers and join the blockchain to help monitor food quality and safety.
5. Payment infrastructure
- A form of a dynamic distributed database registering cash or cryptocurrency exchanges between parties with high speed and efficiency. These use cases include peer-to-peer transactions and transactions crossing banks and borders. One of the most famous companies establishing a new payment infrastructure is Ripple, with a considerable network of significant players as Santander, Unicredit or the Spanish BBVA.
- other cases can be a combination of above-mentioned models or services which do not belong in any of these categories.
This categorization is a summary of the blockchain use cases today. In the coming years blockchain technology will considerably evolve, and open space to many new business models and functionalities.