Aside from being a platform for cryptocurrency, blockchain can also provide web users with the capacity to build value and verify digital information. Emerging business applications for blockchain technology include the following:
With new companies such as Airbnb and Uber becoming global success stories, the sharing industry is now proven as a business model. But at present, customers who like to avail of ride-sharing service have to depend on Uber as a third-party provider.
But if payments can be enabled through P2P, the blockchain technology can open the door to direct transaction between the passenger and the driver, which will lead to a genuine sharing industry. One good example is the Open Bazaar, which employs blockchain to build a P2P online platform.
Users can download the application on their devices, and they can easily transact with vendors without the need to pay for transaction charges.
The protocol implements a no rules policy, which means that personal credibility will be even more significant for these transactions compared to what is currently happening in marketplaces such as eBay.
Public ledgers allow the coding of simple contracts that will execute if the preset conditions are already established. One example of this is the Ethereum network, which is an open-source blockchain, which was created especially for this purpose.
Although it is still in its infancy, Ethereum has gained a lot of traction in the last few years, and cryptocurrency experts believe that it has the potential to leverage the power of blockchain on a genuine global-shaping scale. At the present level of development of blockchain, smart contracts could be designed to perform basic functions.
For example, you can pay one derivative if a financial instrument has already met a specific benchmark through the use of blockchain technology and Bitcoin that enables the automation of the payout.
By improving the transparency and accessibility of information, blockchain technology can become a catalyst in the way government administers its basic services as well as the result on polls or elections.
Smart contracts can also help to make the process faster and easier. One example is the application Boardroom, which allows organizational decisions to happen within the blockchain. This could disrupt how organizations govern and how they manage digital assets such as data and equities.
A decentralized method of keeping records online will bring a lot of advantages. Disseminating data throughout the whole platform will safeguard files from getting lost or hacked.
For example, the Inter-Planetary File System or IFPS makes it easy to build how a public web could function. Comparable to how BitTorrent moves data online, IPFS can eliminate the need for centralized client-server interactions such as the present form of the Internet.
A new version of the World Wide Web that is composed of decentralized websites has the potential to expedite the file transfer and streaming. This improvement is not only efficient but important in upgrading the Internet’s presently overloaded systems for delivering content.
As you might already know, there is no limit on how you can reproduce and distribute information in the Internet. This has provided many online users around the world a huge reserve of free content.
But this is not good news for holders of copyright, because they can lose control over their intellectual property. Through smart contracts, copyright can be protected. It can also automate the sale of creative content via the Web, which eliminates the risk of replication and redistribution.
One good example of this is Mycelia, which employs the blockchain technology to build a P2P music distribution system. Established in the UK by the artist Imogen Heap, the platform allows artists to sell their songs directly to their fan base.
It also allows artists to license samples to producers and manage royalties to musicians and songwriters. These functions work through smart contracts. This use for the blockchain has a robust chance for success because blockchain can be used to release payments in a small percentage of Bitcoin, which are also known as micropayments.
IoT refers to the network-regulated administration of specific forms of electronic devices. One example is the regulation of air temperature within a database facility. Through smart contracts, it is possible to manage the automation of remote systems.
This can be done through the integration of network facilities, sensors, and software as well as the exchange of data between systems and objects. The result could improve cost monitoring as well as efficiency of the system. The most important players in telecommunications, tech, and manufacturing are all looking to dominate the IoT.
This includes At&T, IBM, and Samsung. An organic extension of current systems regulated by these companies, IoT apps will be able to be applied in a wide range of purposes from massive management of automated systems, data analytics, and predictive maintenance of mechanized parts.
We have a specific requirement for improved management of our online identity. The capacity to confirm your identity is the cornerstone technology of financial transactions that could occur online.
However, the resolution for the risks involved in security that come with online portals are not completely perfect. Public ledgers can provide better ways for proving who you are, alongside the possibility of digitizing personal files.
Securing personal identity is also crucial for internet communications in the sharing industry for example. Nevertheless, an outstanding reputation is the most crucial condition for conducting online transactions.
Establishing standards for digital identity can be a highly sophisticated protocol. Aside from the technical challenges, an encompassing web identity solution will require cooperation between the government as well as private organizations.
The problem can be exponentially challenging if we factor in the requirement to navigate the legal systems in various countries. At present, online stores depend on the SSL certificate to ensure that the transactions online are safe.
Using social media platforms such as Facebook and Twitter is free, right? This is not completely true. In exchange for using these platforms, you are paying these companies with your personal information.
But through blockchain, you can have the capacity to administer and sell the information that their web activities produce. And because this can be easily disseminated in micro currencies, Bitcoin will be used to facilitate this transaction.
For instance, Enigma — a project at MIT — has the capacity to understand that the privacy of the user is key in creating a marketplace for personal information. It uses cryptographic strategies to allow individual information sets to be divided between nodes, and also at the same time process massive calculations over the data group in general.
Scalability can be achieved by fragmenting the information, unlike in blockchain technology where information could be replicated on each node.
Stock trading can also take advantage of blockchain technology through the improved efficiency of the shared platform. Once implemented, P2P trade confirmation could become more instant against the usual clearance time of three days. However, this could eliminate the need for custodians, auditors, and clearinghouses.
Several commodities and stock exchanges are now using early forms of blockchain technology for the services they provide. This includes the Japan Exchange Group (JPX), Frankfurt Stock Exchange (Deutsche Borse), and the Australian Securities Exchange (ASX).
Crowdfunding projects such as Gofundme and Kickstarter are now implementing the comprehensive framework for the rising P2P economy. The popularity of these platforms signifies the increasing interest of people who want to have direct involvement in the development of specific products.
The blockchain technology is elevating this interest to the next level by building venture capital funds through crowdfunding. For example, in 2016, the Decentralized Autonomous Organization (DAO) of Ethereum managed to raise as much as $200 million within 60 days. Crowdfunders bought DAO tokens, which allow them to choose the smart contract project they are interested in.
However, the project was hacked and compromised because of poor due diligence. But nonetheless, the test suggests that the technology has the ability to drive new ways for people to cooperate.