4 Powerful Non-Cryptocurrency Uses for Blockchain Technology

In recent years, the blockchain has skyrocketed to prominence as the technology underlying infamous cryptocurrencies like Bitcoin, Ether, andsimilar forms of digital coinage.

Despite its intrinsic connection with such contemporary forms of currency,blockchain technology’s potential uses extends well beyond money and financially-based transactions.

Many blockchain proponents are touting the tech as a revolutionary network that holds the potential to transform a variety of industries, governmental and otherwise.

While blockchain is still very much in its infancy and currently in developmental stages of production, the tech is popping up in a variety of sectors, niches, and applications.

To gain a more comprehensive understanding of how the technology stands to reform much of the professional world, we will be exploring 4 powerful blockchain use cases outside of its native cryptocurrency familial bonds.

#1: Smart Contracts

The term “smart contract” was first used by computer scientist and cryptocurrency pioneer, Nick Szabo way back in 1994, well before blockchain technology came into existence. Szabo’s initial vision of smart contracts was articulated in his mid-nineties paper, Smart Contracts: Building Blocks for Digital Free Markets, in which he defined the technology as follows:

“. . . New institutions, and new ways to formalize the relationships that make up these institutions, are now made possible by the digital revolution. I call these new contracts “smart”, because they are far more functional than their inanimate paper-based ancestors. No use of artificial intelligence is implied. A smart contract is a set of promises, specified in digital form, including protocols within which the parties perform on these promises.”

Over a decade later, this vision manifested thanks to the blockchain.

Smart contracts are legally-binding, programmable digital documents that exist on a blockchain. These contracts work by setting a defined set of rules by which two or more parties agree to abide by (as with traditional agreements). When the contractual obligations are met, funds are automatically released by a third-party executor, instead of any party involved in the arrangement.

Through enabling computer-managed contracts, legal systems and business contracts become increasingly stable and honest.

#2: Enhanced Cybersecurity and Digital Identity

Blockchain communications are transmitted and confirmed using sophisticated cryptographic procedures that verify data is coming from the correct source. This greatly reduces the chances of hackers intercepting or obtaining personal or sensitive information.

This system gives rise to enhanced data authentication protocols through leveraging a Keyless Signature Infrastructure (KSI) that verifies transactions.

This extremely reliable as blockchain technology possesses self-enacting code that either grants or denies access to a network based on the command received. Companies like Verizon are already using blockchain technologies in this capacity.

As this infrastructure serves to bolster cybersecurity, it also augments digital identity safety as it authenticates identities in an immutable and secure fashion.

As most systems still rely on easily-hacked passwords that are stored on insecure servers, blockchain revolutionizes the concept of digital security through providing authentication on public key cryptography which verifies if a transaction was authorized by the correct private key.

This drastically shifts the precarious landscape around digital identity that currently exists.

#3: Voter Verification

Over the past several years, talk of voter fraud has escalated dramatically. This is, in part, due to the 2016 election cycle in which allegations of millions of illegal votes arose.

While voter fraud is a potential threat to the foundation of any democracy, blockchain technology is supplying governmental agencies with the option to implement an un-hackable, permanent vote-counting operation.

With companies such as Follow My Vote hard at work on stopping voter fraudthrough the use of blockchain technology, such systems provide near-impenetrable voter registration and verification infrastructures that cannot be meddled with after the fact.

This is because blockchain acts as an indelible public ledger, capable of applying its principles to a variety of applications; in this case voting records.

#4: Advertising and Influencer Marketing

Online advertising is an extremely challenging practice as it can be nearly impossible to verify if statistics are accurate. Even monolithic sites likeFacebook have had numerous accounts of measurement miscalculations.

When advertisers measure site clicks or followers across various social media accounts, it’s unclear how many of those data points come from actual people or bots that artificially bolster stats. This problem is so pervasive that it is estimated that in 2017 business losses due to advertising fraud reached upwards of $16.4 billion.

With blockchain technology, advertisers can be assured their ad dollars are well spent; the technology enables marketers to access an encrypted and transparent chain to determine if ads are seen by are real audiences and if their followers are real people.

Companies like AdChain are currently putting these concepts into practice.

These same types of issues are prevalent throughout influencer marketing. Verifying that an authority really is influential can sometimes be challenging due to fake followers and robot-based engagements. Moreover, when entering into an agreement with these folks, there is little guarantee that they will fulfill their end of the bargain.

This is where BOOSTO is making big changes in the influencer industry. Using blockchain technology and implementing smart contracts, brands can ensure that the influencers they partner with are reaching the folks that the brand desires, while smart contracts provide a sense of security that the company’s wishes will be fulfilled; otherwise, in accordance with the nature of smart contracts, the influencer simply won’t get paid.

While these are only a few of the many blockchain applications taking place outside of the cryptocurrency universe, the technology’s use cases and functionalities are still unfolding. Over the next several years, there is likely to be widespread experimentation with the technology in a myriad of industries and verticals. While blockchain currently shows great promise and potential, the upper echelons to its capabilities and capacities has yet to be explored.