Top 5 Use Cases for Blockchain in 2023 & Beyond
Beyond commercial use cases, a public blockchain holds a ton of potential value for society as a whole. Here are some examples.
- Supply chain management:
Blockchain can be used to create an immutable record of transactions within a supply chain, making it easier to track the movement of goods and ensure that they are being handled and transported in a safe and transparent manner.
Examples of this already exist with VeChain (VET) which has strong partnerships with large enterprises including Walmart China, Bayer China, BMW Group, BYD Auto, H&M Group, Shanghai Gas, and LVMH.
2. Identity verification:
Blockchain can be used to create a decentralized and secure system for verifying the identity of individuals and entities, which could be used for applications such as voting and financial transactions.
Consensys is the company responsible for MetaMask (the largest and most popular non-custodial web3 wallet) which just announced a partnership with PayPal. This is only the beginning. Many large fortune 500 brands are embracing a web3 strategy which revolves around a wallet as digital identity strategy.
3. Digital currency:
Blockchain has already been used to create digital currencies like Bitcoin, and this use case is likely to continue to grow in popularity as people become more comfortable using digital forms of payment.
Censor-proof digital value exchange utilizing a public ledger is the way we interact in the future of the internet — web3.
4. Data storage:
Remember the old adage — Don’t store all your eggs in one basket.
Blockchains are distributed, not centralized. This distributed ledger technology could be used to create a decentralized data storage system that is more secure and resilient than traditional centralized storage systems.
Typically, a database exists in one place, with a sole administrator controlling what is written to it. A blockchain doesn’t exist on one server, owned by one entity. It exists across many nodes, each owned by a different user.
As we rely more and more on large centralized corporations who store a majority of our personal data, they also become targets for nefarious activity. If this data was anonymized and stored on a decentralized ledger, it lowers the risk of a breach.
5. Smart contracts:
In 1994, Nick Szabo, a well-respected cryptographer who is also an authority on Ethereum, came up with the idea to use computer protocols to support the execution of contracts over computer networks. He wrote in a blog article:
Smart contracts reduce mental and computational transaction costs imposed by either principals, third parties, or their tools. The contractual phases of search, negotiation, commitment, performance, and adjudication constitute the realm of smart contracts. This article covers all phases, with an emphasis on performance. Smart contracts utilize protocols and user interfaces to facilitate all steps of the contracting process. This gives us new ways to formalize and secure digital relationships which are far more functional than their inanimate paper-based ancestors.
Blockchain can be used to create self-executing contracts that are automatically enforceable, which could be used to facilitate a wide range of transactions and interactions within various industries.
