Blockchain… so what are the applications?

Alexander Lee
Sep 5, 2018 · 4 min read

Some random thoughts on where we will see blockchain being used in the future

Recently, someone came up to me (let’s call him Fred) and said, “Blockchain is the future, it’s going to disrupt everything and everyone”. He then followed up with saying, “I think we should create a blockchain for storing data on potential hires and recruitment, things like what their skills are, where their previous employment was etc. We then have an incentive model for them to share information with employers or for people to see their profile”.

“Interesting… Why blockchain?” I replied.

“Because it’s a safe and secure method of storing data that’s transparent” Fred exclaimed. “It’s like LinkedIn, but on the Blockchain!”

I looked at him puzzled for a second, “Sure, but why is it necessary?”

“Because we’re using a blockchain!” Fred replied becoming a bit frustrated I didn’t share his excitement. “We then have a crypto currency attached to it and have an ICO, we’ll be rich! Can you help me develop it?”

My Face

I wish I was making this story up, but this actually happened a few weeks back.

While Fred’s idea, “LinkedIn on the blockchain™” (patent pending) is technically possible to make, in my opinion, lacks the need for any sort of blockchain. To add on to the classic “I can handle the business side” scenario, once you remove the word “blockchain”… it’s LinkedIn.

TW: Blockchain has not disrupted many industries… at this moment.

“But Alex! What about all the crypto currencies and ICO that raised millions of dollars!”

My response to that: 95% of them are garbage coins with unrealistic promises. With the exception of a few, hardly any coins have yet to deliver meaningful application or don’t necessarily need to use blockchain. As bitcoin made a name for itself in public markets with an increase in 1500% last year (2017), a large number of new companies spun off hoping to capitalize on the blockchain craze, raising funds by marketing high future returns.

“Buy our coin for a 10x return in 2 years! We’re definitely not a security”

To clarify, I am in no way saying “Bitcoin and cryptos are a scheme” or that Blockchain isn’t going to disrupt industries, but at this specific moment in time, large industry and consumer impact has still yet to be seen. Ethereum and Bitcoin have made their mark in mainstream knowledge, however, have not been widely adopted outside enthusiasts.

So what am I suggesting about where Blockchain will be in future society? Blockchain can’t just be thrown at anything to make it better. There needs to be a purpose. A purpose including: Trust, Transparency, Accuracy, and Security.

Online Voting is an example of where blockchain can be applied. With current voting practices, we rely heavily on auditors and third parties to count ballots and ensure no collusion. However, as seen in many countries around the world… (Russian hackers?) voting is a sensitive subject with an increasing lack of trust. We trust the system and our governments to communicate the correct results, but how can we be 100% confident our vote actually counted? A research study in 2015 from NYU Brennan Centre for Justice outline the risks of current American voting machines and the potential ramifications. One large focus from the study is the susceptibility of voting machines to hacking.

Voting has been conducted in a similar method since its inception due to the ability to guarantee count.

  1. Ballots go into a box
  2. Box goes into a room
  3. The votes are counted

If anyone questions the results, the box can be taken out from the back and counted again.

Online voting has long been criticized from it’s potential vulnerability and lack of anonymity (for good reasons such as preventing paid voting). However, within the last year, research groups and start-ups such as Aragon, Polys, Voatz or HyperVote (the best one for sure) have attempted to leverage blockchain technology to address the issues, particularity anonymity and security.

Supply chain management is another industry example of where blockchain has a large impact, particularly in maintenance, manufacturing, and agriculture. A system that allows the tracking of materials / elements / parts for QA and control. Think of an airline tracking a faulty part and the origin of that specific part’s material, or a food manufacturer being able to trace back the wheat which made their product contaminated.

Banking applications for blockchain for accurate and secure transactions without the fees or electricity cost is actively being pursued by Bank of America, JP Morgan, and IBM to name a few. Banking has potentially the highest industry application considering Bitcoin’s initial white paper references the current banking system. Focus areas include cross-border transactions, fraud prevention, and equity trading.

Blockchain applications are still in its infancy, similar to the internet early 2000. While there has been large splashes of entertaining blockchain use cases, such as CryptoKitties, BananaCoin, or DentaCoin, blockchain technology will eventually impact our day to day lives without us even noticing. Blockchain goes beyond just cryptocurrencies, however, cannot and should not be applied to everything. Some things are better left in SQL.

As a final note, these are just my opinions. I would love to hear what your thoughts are. Thanks for reading.


About the Author: Alex is a Co-Founder of HyperVote, an online voting platform using HyperLedger Fabric, a permission blockchain developed by the Linux foundation and IBM, to create more transparent, accurate, and secure voting. Alex is a former blockchain research assistant at the University of British Columbia.

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