Blockchain Use Cases
How to spot a use case?
A Blockchain is not a replacement for a database. Many of the blockchains and tokens created in the past two years, have been without a product, or a concrete use case. This article aims to inform the reader on how to tell a good use case from a bad one.
What can a blockchain replace?
A blockchain can replace a centralized third party, that is subject to corruption, manipulation, or human error. This third party may have the power, or ability to charge fees outside the scope of what is reasonable for the service that is being provided. Some examples of these third parties are as follows.
Social Media Platforms
Uber / AirBnB
How does a blockchain replace the third party?
The third party is replaced with unbiased code. If we take Bitcoin for an example, Bitcoin doesn’t care who you are, where you are, or why you’re using the platform. Bitcoin checks to see if the parameters of the transaction are valid, and if they are, then Bitcoin allows the transaction to occur on the network. This simple example illustrates the broader use case by highlighting the three of the benefits of blockchain.
Censorship Resistance: The ability for a system to circumvent or bypass censorship efforts.
Cross-Border Payments: The lack of acknowledgement of arbitrary geo-political borders that traditional organizations have to conform to the regulations of.
Unbiased Service: The systems lack of awareness of who is using the system.
So who will benefit?
The first to benefit from blockchain, will be the people of the planet who are most affected by the above three factors. Individuals who face censorship, oppression, and bias based on their socio-economic status will benefit the most in the near to medium-near future. There are already people in developing countries where their currency is highly devalued by corrupt governmental regimes that are taking advantage of the current financial system. Blockchain has the ability to provide a more fair replacement system.
Those of us who are privileged to live in a country that has excellent financial services are not going to notice blockchain and its abilities, because censorship and corruption is a much less prevalent paradigm. With that being said, we do live in a society where we are being taken advantage of with respect to the data we put online.
New Paradigm of Ownership
One of the massive shifts that is taking place today, and will continue to take place over the course of the duration of the blockchain revolution, is how we think about ownership.
What do you own?
How do you prove your ownership?
Do you own the data you put online?
Do you own your money?
You may get a range of answers depending on who you ask those questions to.
If you ask someone versed in cryptocurrency and blockchain, the question, “Do you own your money?” the answer you might receive will be something along the lines of, “You might, think you own your money, but … ”.
We place a tremendous amount of trust in the institutions that we think are acting in our best interest. I don’t know about you, but the entity I trust the most to act in my best interest, is myself.
Up until now, the safest place to keep your money was in a bank, but its now possible to keep your money safe without the help of any other third party.
The three biggest areas that blockchain will change in your life is how you think about the following three things.
Your Assets ( House, Car, Stock, Intellectual Property )
Your Data ( Photos, Content, Posts, Metadata )
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