March 12, 2022 — 3 min read
Blockchain - Powering the next-gen of Innovation
Blockchain is a technology that has tremendous untapped potential. Here, I list a plethora of use cases for blockchain technology.
Use Cases of Blockchain
- Payment: Instant payment settlement using crypto stablecoins (CBDCs) - currently bank transfers or even Visa payments take days if not weeks to settle in the backend. Crypto allows for such settlements to be instant and nearly free.
- Borrowing/Lending: Instead of paying 12-20% unsecured loans to credit cards, use crypto as collateral for a 3-6% loan. This way you don't need to sell crypto and pay taxes on gains while continuing to hold an appreciating asset.
- Stock Market: Allow stock market trading without a middleman, users can act as liquidity providers themselves and earn fees from trades or dividends.
- Event Ticketing: Tickets created as NFTs, are easily traceable and cannot be counterfeit. Wallets holding NFTs can be airdropped for future event invitations or discounts
- Title / Deed Ownership of Property or Asset: Represent the title and registration of a car with an NFT, which can be used to securely sign the message to start the car (i.e. use it as the key to the car).
- Sports Fans: Create a more engaged fan base by creating sports fan tokens; allow fans to actively participate and have a vote on events, season ticket distribution, earn a share from merchandise, vote on governing bodies, etc. (e.g. Chiliz).
- Insurance: Payout insurance based on smart contract data(e.g. flood, storm) without the middle man. Allow insurance to be integrated within yield farming, liquidity staking (protection against impermanent loss),etc.
- Supply Chains: Track and verify the legitimacy of goods in a distribution chain, such as medical goods, wine, etc (e.g VeChaindeployed in Malta for tracking COVID vaccines).
- Gaming:- Create in-game items as NFTs, where users can freely trade items with each other and use them across multiple games (i.e. bring your favorite battle sword crafted in one game to a different game)- Own land in virtual reality games where you can display your NFTs. Decentraland already has a virtual version of Silicon Valley, where many major companies have purchased land to set-up their online presence.
- Artists / Musicians & Royalties:- Artists can sell their art online as NFTs without the middle man; any piece of art (music, photo, podcast) can be created with a royalty feature to allow that artist to financially benefit from future resales- Musicians can put out music as NFTs and distribute to fans; they can engage with fans further by whitelisting addresses that hold their assets for special memberships/events/airdrops.
- Peer-2-Peer Financing:- Currently, invoices take up to 2 months to settle, leaving companies struggling with liquidity at times. Tokenizing these invoices and allowing users to lock in their funds for a steady 10-15% ROI will unlock liquidity for businesses and provide a yield to its participants.- Tokenizing real estate projects also allows developers to access instant liquidity.
- Identity Management: Create an online identity that’s stored (and encrypted) on the blockchain and which is in full control of the user. The user will be able to allow/restrict access to various parts of your digital ID in a time-locked or function-locked manner - a way to verify your identity without having to go through KYC (e.g. Litentry on Polkadot and AtalaPRISM on Cardano).
- Distributed Social Media: Distributed social media allows people to buy into their favorite influencers' social tokens, have an active say, and participate in that community as well as trade the tokens.
- Resources Sharing & Incentives: There are many projects that will reward you with tokens in return for network bandwidth(Theta), data (Filecoin, Bittorrent, Storj), and other computer resources which is then used to build decentralized systems
- Privacy Coins Transfer value in a completely private way. No one can peak, see, or check anything in coins like Monero or Phala. Projects such as Tornado Cash allow hiding value transfers between more open crypto
- Marketing & Advertising - Change the status quo of the advertisement market by opting into alternative products/services such as Brave Browser or My Tiki, taking away the power from the middle man (Google/Facebook)and giving it back to the end-users.
- Trustless Voting - Both on a national level and local/company level.
- Social Welfare & Universal Basic Income (UBI) - Distribution of welfare/UBI can be simplified and more directly targeted.
- Reduce Corruption - Due to the transparent nature of the blockchain, corruption can be greatly reduced.
- Humanitarian Aid Distribution - World Food Organization is already employing blockchain technology to optimize their aid distribution to conflict countries such as Syria. Technology improves efficiency, cost, and transparency over the current system. Oxfam distributes aid in the form of digital currency to small Pacific countries in need.