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Companies around the world are jumping at the chance to utilize blockchain technology, hoping to improve their business.
But how much value can blockchain bring and in which industries is it going to make the most impact?
Let's take a look.
Blockchain and finance
Blockchain has a lot to offer the finance sector. International settlement is one such area.
Moving money internationally is usually time consuming and expensive. The sending and receiving bank must manually open and close their secure databases to process a transfer. It's secure, but that doesn’t mean it's perfect.
Using blockchain, banks could make these payments without opening and closing their databases. International payments could take seconds instead of days, while the process would remain secure.
Blockchain also opens the door for people to be able to send money abroad without the need for a third party.
The immutability of blockchain ensures all transactions are recorded, meaning blockchain can be used by regulators and auditors.
Blockchain also removes the need to trust third parties in financial matters like trading and investing. Goldman Sachs have estimated that using blockchain in finance could save as much as USD6 billion a year.
Examples of projects on Liquid that fit this category:
Blockchain and supply chain
The supply chain refers to the production and transportation of a product, moving from supplier to consumer. In this process, products travel from place to place, leaving lots of opportunity for things to go wrong.
Products can get lost, stolen, faked or added to the supply chain unnoticed.
A supply chain has many different parts that need to be managed, but they are normally complex and lack transparency.
Customers buy products without truly knowing where they have come from or even if they are authentic.
A supply chain needs to be efficient, transparent, secure, and reliable.
Blockchain is immutable, so the whole process is transparent and can be quickly referenced.
One common method is putting RFID tags on products. Every time a product changes hands, the RFID can be quickly scanned, recording the transaction directly to the blockchain.
A supplier then has the ability to look at the movement of a particular product and see where it went.
This process benefits the consumer.
If you buy meat from a shop and can track where it has come from, you can see the whole supply chain process and verify the meat is from where it should be and that it meets certain criteria, such as being organic or fair trade.
It doesn't have to be food. It could be a handbag or a shirt or a pair of sneakers. Anything that has a supply chain.
In the pharmaceuticals industry, counterfeit drugs entering the supply chain is a massive issue. Blockchain technology can solve this too.
Projects on Liquid that focus on the supply chain:
Blockchain and marketing
Marketers perform many tasks that could make use of blockchain.
Influencer marketing is one area. Finding relevant influencers can be tiresome. But there are projects focussed on using blockchain to streamline the entire process.
By utilizing blockchain, smart contracts and tokenized payment systems, brands can ensure they are getting what they paid for and influencers can be sure they are being compensated properly.
Data privacy is another area. Blockchain can be used to keep personal data safe, so when you are using applications or websites, your data is stored with you, not on the server of the service you are using.
While blockchain may be the answer for consumers to protect their data, it may also be the solution for marketers. Companies and brands can use blockchain to build trust, while consumers receive more relevant advertising.
There are, for example, systems being built that allow consumers to be compensated in cryptocurrency for viewing relevant adverts.
Marketing projects on Liquid:
Blockchain and gaming
In-game assets are a large part of gaming. With blockchain, individuals will be able to have true ownership of their in-game assets, able to move the value between games.
Blockchain has also facilitated the creation of market places where gamers can sell or trade these assets quickly in a secure environment.
Many gamers are interested in paying for micro-transactions with cryptocurrency. There are cryptocurrencies that exist for the sole purpose of being used for gaming-related purchases.
In addition, game creators can easily make custom currencies to be used in their ecosystem.
Here are a couple of gaming projects to check out on Liquid:
Blockchain and ticketing
Buying tickets for shows can be a nightmare. If you don’t get in quick enough, they sell out and then you have to pay a massive premium to buy them from ticket resellers.
Most people would agree that if you are not planning to go to a show, you shouldn’t be able to buy the ticket in the first place.
Ticket companies can use blockchain-based ticket sales software to ensure that tickets are sold to the right people, while retaining control over the secondary market, removing resellers entirely.
This also enables performers to execute their own ticket sales. All of this helps keep prices affordable.
Have a look at Get Protocol for this use case, which is available for trading on Liquid.
Blockchain and voting
Voting systems are fraught with problems. Every year after major elections there are stories about efforts to sway votes and miscounts.
Blockchain can be used to eradicate voter fraud and remove the need for third-party action – this would mean no counting is required.
Votes could be securely logged, and they would have a verifiable and immutable trail on the blockchain.
Every vote could be accounted for, while no votes could be changed thanks to blockchain technology.
Blockchain and the automobile industry
Blockchain can track the history of cars to ensure that the displayed mileage is correct along with other aspects about the car.
This gives buyers peace of mind, in much the same way as with supply chain applications of blockchain.
In the future, it should be possible to buy a car and be completely sure of its entire history, without having to rely on sketchy records.
Additionally, car insurance companies are interested to know how their customers drive. Blockchain technology will make it easier for insurers to track vehicles and monitor their driving habits.
This would take into account various factors, such as acceleration, cornering speed, braking and more.
Blockchain is the future.
As you can see, there are many different cases where blockchain can be helpful, but this is just the beginning. Blockchain is versatile and it's here to stay.
WRITTEN BYAlex Aves
"Baby shark" of the Liquid marketing team.