However, this time we will go beyond crypto assets. That is, approach it understanding that, once a transaction is accepted and included in a chain of blocks, it cannot be modified, it is immutable and incorruptible. This gives way to the creating a solution environment that can support the relationship between actors with low mutual trust, without the need for intermediaries.
So how is the business logic associated with the blocks supported? Through smart contractsalso immutable and agreed between the parties, who collaborate with each other for a common purpose: that of exchanging information in a secure and reliable manner without relying on intermediaries.
Imagine blockchain as an accounting ledger, with entries for every movement that is made, but decentralized, distributed and supported by technology. How is trust in the blocks of the chain ensured? Remember that we are in a “Trustless” environment with low trust. There is no need for a centralizing entity to ensure the validity of transactions, since blockchain supports trust through consensus algorithms.
Although anonymous, all transactions are searchable live, via tools such as blockchain explorer. Thus, for example, if a block is “stolen” it is very simple to make a trace and recover it again. On the other hand, reinforcing transparency, most of the blockchains are open sourceso anyone with a knowledge of technology can analyze the way they work.
So, blockchains are applicable when there is a lack of trust between network participants and/or data sources; the case involves a network of multiple organizations or agencies; the participants have a common approach to accessing the data; it is necessary to have a strict immutability of the transactions; there is a large geographic separation of participants; processes are audited by third parties; they are the only source of truth (avoid reconciliations); they want to eliminate intermediaries; there are digital representations of a physical asset; there are contractual relationships.
Here are some use cases in industries such as food, government, sports, and real estate, among others, that are interesting from this perspective:
Fishcoin Project: Traceability of the complete life cycle of the fish, from extraction to commercialization. With the objective of ensuring the quality of food, and avoiding illegal fishing, ensuring sustainability.
truepic: Guarantees the veracity of the photos, ensuring that the images used by digital media are real. For that, it is based on the information stored in its metadata and tracked via the blockchain.
E-estonia: The country managed to reverse its bad economic and social situation through the complete digitization of its functioning as a nation. In the future, it seeks that all the operation of the state be tracked via blockchain solutions, including having its own cryptocurrency.
cryptobrick: An Argentine startup that seeks to decentralize access to real estate investments.
Socios.com: Loyalty platform that supports tokenizing fanaticism for a football club. Barcelona, Juventus, PSG or Club Atlético Independiente are some cases already implemented.
In conclusion, although the use of blockchain today is highly convulsed by crypto assets and associated speculations, It is a technology that has enormous potential. to change the way industries, business processes or our daily lives are managed. We are at a key point, where all the potential it has begins to be glimpsed. In the coming years we will witness a explosion of various platforms or solutions based on these technologies.
Partner & CTO of Ingenia