Blockchain use cases

Blockchain technology can be utilized by projects, startups, existing businesses and especially for collaborations among multiple parties. In the past years, many corporations and thousands of startups have already experimented with blockchain technology and created proofs-of-concept and decentralized applications. However, only a handful of blockchain use cases have received serious recognition and some sort of adoption: Digital payments, notarization, crowdfunding, online collectibles and DeFi. Dapps in DeFi, NFT & the gambling sector are expected to receive wider adoption first. In general, there a number of blockchain functionalities and use cases that can be combined and applied in different industries.

General blockchain use cases

Use case: Timestamping – Notarization

What is it? Timestamping describes documenting a specific event with time and date. In many cases, it’s important to officially testify the correctness of a document or an incident at a specific date either with a signed declaration, a witness or an official notary.

Why blockchain? A blockchain is a sequence of blocks that are added one by one. Whenever you write (save, reference) something on a blockchain it automatically comes with a timestamp and it’s easy to look up these timestamps. Since blockchain timestamps cannot be changed, it’s among the most secure approaches.

Examples: Delivery times, Document notarization

Use case: Life-cycle assets – Track & Trace

What is it? Asset Lifecycle Management is the process of managing an asset throughout its lifetime. Financial products as well as manufactured goods go through a lifecycle and must be tracked and analyzed to know their history and current position.

Why blockchain? On a blockchain, you can register your products regularly and you can issue tokens. Whenever a token is transferred, it is automatically tracked. This makes track and trace solutions very easy.

Examples: Supply chain, Ownership claims, Chain of custody

Use case: Authentication – Certification – Digital rights

What is it? Authentication is about verifying the accurate identity of a person, document, or any other item. This process can be very burdensome. Hence, there are software programs and especially official agencies that issue certificates and check the accuracy of presented documentation & things.

Why blockchain? Due to the power of blockchain technology and cryptography, any document or thing that is saved on a blockchain is incredibly hard if not impossible to alter afterward. Certificates that are issued with a blockchain can easily be checked & verified.

Examples: University degrees, Property titles, ID, Digital rights

Use case: Access rights

What is it? Access control is a security part of almost all applications and companies. Properly managing the access to systems, documents and spaces is a huge challenge and can make a difference for companies’ and individuals’ data.

Why blockchain? Blockchain can document the exact time whenever a person has access to a file or property. Additionally, access control can be automated and run completely secure without problems, interference, or required actions from individuals.

Examples: Delegation rights, Classified documents, Time-restricted access for third-parties

Use case: Indexing – Referencing

What is it? Knowledge and data is scattered in organizations, online and offline. Often, there are various systems running in parallel in order to not lose any data. Some of the internal data can be shared with external parties but must be properly documented, accessible, and verifiable.

Why blockchain? Blockchain is a database system that offers sequential consistency. Public chains can be used for settlement between private systems and function as a source of truth and reference data points. Private chains can be leveraged by known partners.

Examples: Cap table, Mergers & Acquisitions, Collaboration among stakeholders

Use case: Non-fungible assets – Non-fungible tokens

What is it? Usually when you send a file online, you always send a copy and keep the original. However, there are individualized items offline and online where it’s important that they are unique and only one person can own the asset.

Why blockchain? Blockchain has solved the double-spending problem and made it possible to send money from one person to another without needing a third party (bank) that ensures that a single digital token cannot be spent more than once. On a blockchain, you can create non-fungible tokens.

Examples: Digital collectibles, Specification, Concert tickets

Use case: Smart contracts – Self-executing contracts

What is it? A decentralized smart contract is a computer program that is coded to enforce a contract upon certain conditions. With a smart contract, you can automatically execute, control, or document legally relevant events and actions.

Why blockchain? Blockchain is run on a decentralized network that enables the smart contract to run automatically exactly the way intended without interference or change by one of the parties.

Examples: ICO, Decentralized financial contracts, Automation of sharing & payments, Pay-per-use

Use case: Tokenization

What is it? Tokens have already been used offline to replace real money and digitally to replace sensitive data with a non-sensitive digital equivalent. Digital tokens can easily be issued, can have various properties and can be exchanged & traded if intended.

Why blockchain? Blockchain overcame the double-spend problem. All tokens on a blockchain can easily be issued and transferred without a third party. Token actions such as issuance and transfers are recorded on the blockchain ledger.

Examples: Stable coins, Non-fungible token, Fungible tokens, Asset tokenization, Fractional ownership, Incentivization

Use case: Atomic swaps – Trustless exchanges

What does it mean? Whenever people and businesses deal with each other they have to trust each other at least for some time to receive goods or a service in exchange for payments. For high-value exchanges, complicated contracts and trusted third parties are used to ensure a fair exchange.

Why blockchain? On a blockchain, two parties can agree on a contract and the contract automatically executes upon fulfillment of obligations.

Examples: Exchanging goods & payments, (Flash) Loans, Multi-party agreements

Use case: Staking

What does it mean? Staking is about locking up assets for some time in order to earn interest or other rewards. Rewards can be issued in the same or in other currencies.

Why blockchain? Staking is crypto-specific and derived from the Proof-of-Stake consensus. Since projects can issue a new cryptocurrency, they can define the supply, issuance (schedule), and incentives to hold, earn, or engage with the tokens.

Examples: Incentivization, Lending, Liquidity Farming, Lockdrop

Use case: Transparency – Trust

What does it mean? Transparency is about using the blockchain as a publicly verifiable database. Information asymmetries can be prevented and more trust among different stakeholders can be achieved.

Why blockchain? Trust is the central piece of blockchain. You can minimize trust by utilizing blockchain technology instead of trusting third-parties. Blockchain provides this decentralized, immutable infrastructure that everyone can easily read and verify. 

Examples: Insurance Log, Mileage of cars

Use case: Payment

Why blockchain? Digital payments should be as efficient & anonymous as cash payments. Bitcoin was created to solve digital payments without the need for a third party. Previously, business processes and payments were separated. You traded goods and used a bank to handle payments. Blockchain allows you to transfer digital goods and exchange financial values at the same time. The peer-to-peer blockchain network enables you to trade without sharing personal data with third parties, or the need to trust and pay them for their services. In fact, you can not only use blockchain for “normal payments” but trade all kinds of financial instruments through protocols.

Note: New customer-facing fintech companies can utilize various plug-and-play permissionless blockchain protocols instead of building up more and more technical debt by building on their old systems. They are able to easily create optimal financial instruments and applications for their customers. Since not all people will be tech-savvy, buyers & sellers need to find each other, and not all transactions need core blockchain security; these fintech companies, (decentralized) exchanges, payment networks & payment agents (individuals & banks) will emerge and take on new “middleman” roles. The cut of middlemen should significantly shrink over time and the financial system should become accessible to all with a mobile phone.

How are use cases applied by blockchain projects

Blockchain projects apply these generic use cases in all industries. Add your solution for free & it will be added to multiple lists on BC!

Blockchain use cases per industry

There are blockchain use cases & blockchain projects in all areas. We share more and more insights to potentials in each industry.

ALL COMPANIES & DAOS

Companies & projects can utilize new fundraising mechanisms & use token incentives to empower users & make them engage or contribute more actively.

ALL VALUE CHAINS

Individuals & organizations can replace companies in traditional industry value-chains. Producers can also participate along the value (chain) creation due to new traceability possibilities. 

ALL UNIQUE DIGITAL THINGS

NFTs (Non-fungible tokens) can be used for digital collectibles, in gaming & arts and can be traded on marketplaces. NFTs can also enable identification & tracing of accounts, people & things.

Agriculture

Use cases include food traceability or the shared purchase & use of equipment by groups of farmers.

Automotive & Aviation

Use cases include the verification of vehicle components, the connected car and seamless charging payments.

(Central) Banks

Use cases include digital currencies, cross-border payments or efficient clearance & settlement systems. 

Construction

Use cases include the registration of legally binding handovers or constant property management & maintenance.

Decentralized Finance (DeFi)

A new, parallel financial system will run on decentralized networks and enable all to borrow, lend or trade without banks.

Defense & Arms

Use cases include tracing of high-value weapons, prevention of cyber attacks or reduction of single points of failure.

Eduction

Use cases include secure digital certificates & credentials as well as new co-creation & learn-to-earn models.

Electronics

Use cases may include better data sharing throughout the supply chain.

Energy

Use cases include peer-to-peer energy trading, efficient resource management and distribution.

Entertainment

Use cases include digital rights management, reduction of piracy, and direct distribution of contents.

Food

Use cases include food traceability for improved food safety & quality.

Finance

Use cases include cross-border payments, more efficient securities trading and record-keeping.

Games & Gambling

Smart contracts & staking mechanisms enable you to play a dice game, poker & no-loss-lottery without counterparty-risk.

Government

Use cases include various registries, efficient auctions & allocation of finances as well as reduction of bureaucracy.

Information

Use cases include the reduction of silos & better, more secure information sharing while keeping hold of original data.

Identity

Use cases include self-sovereign identity and consequently single-sign-on & sharing of specifically agreed data.

Insurance

Use cases include the reduction of information asymmetries and quick insurance closings & payouts.

Health Care & Pharma

Use cases include critical supply chain tracking, patient’s direct ownership of medical records & access for research & pharma.

IT & Engineering

Use cases may include secure co-creation & participation in returns from software built on top of open-source software.

Media

Use cases include new business models such as pay-per-read or pay-per-second for online articles & videos without ads.

Real Estate

Use cases include fractional ownership, better market transparency & lasting property management records.

Science

Use cases include a new economy for researchers and better data sharing among scientists, testers & companies.

Social Impact

Use cases include fraud reduction and less administrative costs through direct support & better accessibility.

Social Networks

Social networks running on decentralized networks can improve user privacy & avoid any single point of failure.

Sports

Use cases include better fan relations & engagement through tokenization as well as ticketing fraud prevention.

Supply chain

Use cases include supply chain traceability & supply chain management through better data access. 

Sustainability

Use cases include track and trace solutions & easier verification of claims and who buys what from whom.

Telecoms

Use cases include (automated) carrier-to-carrier transactions, multilateral agreements & standardizations.

Textile

Use cases include the traceability of textile products which may lead to better sourcing & higher quality consumption.

Transport

Use cases include parts tracking of vehicles & sharing of revenues across service providers in transport systems.

Great insights. No noise. Weekly Newsletter.

In our newsletter we introduce great blockchain solutions and share a collection of the best blockchain insights from the past week.

Let’s get you started

Do you work on a project or look for specific insights to an industry? Add your info to BC or let us know through the livechat or form below.

Add a use case

There is a limited number of generic blockchain use cases that can be combined and applied in different industries. Do you have an idea that’s not covered yet? Let us know!

List your project

We collect all blockchain projects & present them in various places. This helps all to learn about blockchain use cases & ecosystems and use dapps. Add your project!

DeFi

Decentralized finance is growing quicker than any other blockchain use case. Learn more about DeFi, its current state, what you can do, and which projects you can use!

Send us a Message

3 + 1 =

Info@

blockchain-comparison.com

Pin It on Pinterest

Share This