Although the blockchain originally was developed around cryptocurrency (more
specifically, bitcoin), its uses don’t end there. Today, it may seem like that’s the case, but there are untapped industries and markets where blockchain technologies can redefine how transactions are processed. The following are some examples that come to mind.
Improving Smart Contracts
Ethereum, the same open-source blockchain project deployed earlier, already is doing the whole smart-contract thing, but the idea is still in its infancy, and as it matures, it will evolve to meet consumer demands. There’s plenty of room for growth in this area.
It probably and eventually will creep into governance of companies (such as verifying digital assets, equity and so on), trading stocks, handling intellectual property and managing property ownership, such as land title registration.
Enabling Market Places and Shared Economies
Think of eBay but refocused to be peer-to-peer. This would mean no more transaction fees, but it also will emphasize the importance of your personal reputation, since there will be no single body governing the market in which goods or services are being traded or exchanged.
Crowdfunding
Following in the same direction as my previous remarks about a decentralized marketplace, there also are opportunities for individuals or companies to raise the capital necessary to
DEEP DIVE
help “kickstart” their initiatives. Think of a more open and global Kickstarter or GoFundMe.
Multimedia Sharing or Hosting
A peer-to-peer network for aspiring or established musicians definitely could go a long way here—one where the content will reach its intended audiences directly and also avoid those hefty royalty costs paid out to the studios, record labels and content distributors. The same applies to video and image content.
File Storage and Data Management
By enabling a global peer-to-peer network, blockchain technology takes cloud computing to a whole new level. As the technology continues to push itself into existing cloud service markets, it will challenge traditional vendors, including Amazon AWS and even Dropbox and others—and it will do so at a fraction of the price. For example, cold storage data offerings are a multi-hundred-billion-dollar market today.
By distributing your encrypted archives across a global and decentralized network, the need to maintain local data-center equipment by a single entity is reduced significantly.
Social media and how your posted content is managed would change under this model as well. Under the blockchain, Facebook or Twitter or anyone else cannot lay claim to what you choose to share.
Another added benefit to leveraging blockchain here is making use of the cryptography securing your valuable data from getting hacked or lost.
Internet of Things
What is the Internet of Things (IoT)? It is a broad term describing the networked management of very specific electronic devices, which include heating and cooling thermostats, lights, garage doors and more. Using a combination of software, sensors and networking facilities, people can easily enable an environment where they can automate and monitor home and/or business equipment.
Supply Chain Audits
With a distributed public ledger made available to consumers, retailers can’t falsify
DEEP DIVE
claims made against their products. Consumers will have the ability to verify their sources, be it food, jewelry or anything else.
Identity Management
There isn’t much to explain here. The threat is very real. Identity theft never takes a day off. The dated user name/password systems of today have run their course, and it’s about time that existing authentication frameworks leverage the cryptographic capabilities offered by the blockchain.
Summary
This revolutionary technology has enabled organizations in ways that weren’t possible a decade ago. Its possibilities are enormous, and it seems that any industry dealing with some sort of transaction-based model will be disrupted by the technology. It’s only a matter of time until it happens.
Now, what will the future for blockchain look like? At this stage, it’s difficult to say.
One thing is for certain though; large companies, such as IBM, are investing big into the technology and building their own blockchain infrastructure that can be sold to and used by corporate enterprises and financial institutions. This may create some issues, however. As these large companies build their blockchain infrastructures, they will file for patents to protect their technologies. And with those patents in their arsenal, there exists the possibility that they may move aggressively against the competition in an attempt to discredit them and their value.
Anyway, if you will excuse me, I need to go make some crypto-coin. ◾
Petros Koutoupis, LJ Contributing Editor, is currently a senior platform architect at IBM for its Cloud Object Storage division (formerly Cleversafe). He is also the creator and maintainer of the Rapid Disk Project. Petros has worked in the data storage industry for well over a decade and has helped pioneer the many technologies unleashed in the wild today.
Send comments or feedback
via http://www.linuxjournal.com/contact or email [email protected].