Effects of blockchains onto general industries
Blockchain is quickly seeping into the economics of countries. When it comes to public benefits, for an example, that system is another sector that suffers from slowness and bureaucracy. Blockchain technology can help assess, verify and distribute welfare or unemployment benefits in a much more streamlined and secure way. A UK based company called GovCoin systems has already taken up this opportunity and is helping the government to distribute public benefits using blockchain technology. The blockchain is also a good contender for implementing a basic income. Circles is a project working on developing a blockchain based technology for implementing a universal basic income.
Moreover, healthcare is yet another industry that relies on so many legacy systems and is ripe for disruption. When it comes to healthcare one of the challenges hospitals face is the lack of a secure platform to store and share data and often there exist victims of hacking on account of outdated infrastructure. Blockchain technology can allow hospitals to safely store data like medical records and share it with the authorized professionals or patients which will improve data security and can even help improve accuracy and speed of diagnosis. Gem and Tierion are two startups that are working on disrupting the current healthcare database.
Furthermore, energy management has also been a highly centralized industry for a long time. Energy producers and users cannot buy directly from each other and have to go through the public grid or trusted private intermediaries. Transactiv Grid is a start-up using the Etherium blockchain that allows customers to buy and sell energy directly from each other in a peer-to-peer way. Several blockchain startups are also coming up with ways for musicians to get paid directly from their fans without giving up large percentages of sales to platforms or record companies.
Smart contracts can also be used to automatically solve licensing issues and better catalog songs with respected creators. Further more, when you shop you trust the retail system of the store or the marketplace and decentralized blockchain based retail utilities work no differently. They connect buyers and sellers without a middleman and associated fees. So much for Amazon. In these cases trust comes from smart contract systems, the security of exchanges and built-in reputation management systems as well.
When it comes to real estate some of the issues in buying and selling it are bureaucracy, lack of transparency, fraud and mistakes and public records using block chain technology can speed up transactions by reducing the need for paper-based record-keeping. It can also help with tracking and verifying ownership, ensuring accuracy of documents and transferring property.
On another hand, crowdfunding has become a popular method of fundraising for new startups and projects in recent years and these crowdfunding platforms exist to create trust between project creators and supporters. However they also charge a very high fees. Reduction based crowdfunding trust is created through smart contracts and online reputation systems which removes the need for a middleman. New projects can raise funds by releasing their own tokens that represent value and can later be exchanged for products, services or cash. Many block chain projects have now raised millions of dollars through such token sales although they are still in their early days and the regulatory future of block chain based crowd funding is uncertain. It is an area that holds a lot of promises and it’s likely a field that can be disrupted by blockchain technology. The block chain space is wide open and the opportunities are many.