Wider applications of blockchain beyond cryptocurrency
My studies in sustainable exchange and in particular participating in sessions on ‘Money and Society', have led me to look further into what cryptocurrency was about, however with my background in software alongside a social interest, I was more intrigued about blockchain which is the technology many of these new currencies utilise.
Indeed blockchain can provide a modernised approach to money through its use of cryptocurrency but I’m more enthused to see how adopting blockchain technology beyond just currency could enable a shift in society whereby it is the mechanism that brings value rather than just the currency that is sat upon it.
Blockchain is very much transactionally focused and financial transactions would often be at the focus of such data. I believe that the integrity of such transactions could in itself offer the value. In social terms, the key values often deemed to be weak in the current monetary system include transparency, fairness and integrity. For many people this is attributable to the fact that the monetary system is controlled largely by the banking sector whose activities are very much hidden, intangible and nontransparent to typical members of society outside of that environment.
Transactions in cryptocurrencies such as Bitcoin are open and publicly visible. There is however currently the notion of being able to transact anonymously. This is at the centre of many debates around the integrity and future of such a mechanism and there are certainly other alternative initiatives exploring this.
Blockchain currencies seek to provide an open platform that functionally guarantees the integrity of the transactional information passed through it. It seeks to redress many of the attributed failings in the current monetary system. Issues such as transaction fraud and mis-accounting are significantly reduced. This factor alongside the notional transparency, enables the user population to build or regain trust and confidence in a new way of handling money.
Wider applications
According to a leading consultancy, Lendra Capital, there are numerous ways in which a cryptocurrency like Bitcoin can be applied in financial and currency terms these include: private/public equities; bonds; derivatives; voting rights; commodities; spending/trading records; mortgage/loan records; crowdfunding; micro-finance and micro-charity.
Moving beyond currency, given an assumed new found trust and confidence by its member community, the model can be applied wider in social terms. Lendra suggests this could be used in public and private records such as land titles; vehicle registries; business license; business incorporation records; business ownership records; regulatory records; criminal records; passports; birth certificates; death certificates; voting; safety inspections; building permits; gun permits; forensic evidence; court records; voting records; nonprofit records; government/nonprofit accounting/transparency; contracts; signatures; wills; trusts; escrows; GPS trails; certifications/grades; HR records; medical records; accounting/business transactions; genome data and delivery records.
In addition some physical and non-physical asset keys could be applied to include: property/car keys; package delivery; betting records; sports records; coupons; vouchers; reservations; tickets; patents; copyrights; trademarks; software licenses; copyright licenses; domain names; online identities; proof of authorship; documentary records; sim cards; network identities; weapons unlock codes and even nuclear launch codes.
As can be seen from the above examples there are potentially a vast array of applications which blockchain software technology could introduce. At present there is no one single mechanism which is for now being widely recognised as the de facto or standard and such applications are very much at an experimental stage. Again beyond a financial focus, blockchain technology such as Ethereum enables users to execute contracts again at a micro level without the need for legal input.
Governance
Another hot topic is that of regulation and governance. There are mixed opinions on this due to the transparent nature of transactions such as those used in Bitcoin exchange, in that regulation should not be necessary. It is however suggested (Marx, 2014) that manipulation of cryptocurrency trading is an unknown entity with no universal consensus at this stage in its maturity. Aside of technology it is claimed that the likes of Bitcoin cannot be detached from political theory (Gupta 2014) therefore will be subject to many of the existing debates around governance.
A blended approach?
I believe that when the concept of blockchain transactions in currency or other applications becomes more widely acknowledged and if one or a number of platforms are accepted as a standard, then this could revolutionise the way money and information is transacted in society. In the current monetary system, financial and social interests are largely separate considerations. I believe that the two broad applications of blockchain technology in financial and social transactions should be given consideration as a collective concern to nurture a more transparent and valuable fabric within this new digital age.
What to explore more?
This has focused more on the wider applications of blockchain but if you’re more specifically interested in wider discussions on cryptocurrency and the history, nature and future of money and society, then I highly recommend signing up for the free course led by the Institute for Leadership and Sustainability. Find out more here – http://ho.io/mooc
Jon, thanks for sharing.
There's a significant amount of negative propaganda circling crypto. Its great to see more plausible articles in circulation.