Applications of Distributed Ledger Technology (Blockchain)
In this week’s blog, I highlight some good uses of Blockchain technology and recent events showcasing their deployment.
One of the most promising applications for Blockchain is eliminating the inefficiencies and reducing the cost that currently plagues centralized methods for ownership transfer (assets sales/purchases) or record keeping.
A recent and good example of this application is:
German Financial Regulator Approves US$280 Real Estate Token Sale
While some people may still be skeptical about Blockchain technology, the German Financial Market Supervisory Authority (BaFin) recently approved an offering of 250 million euro (US$280 million) of real estate bonds by Fundament Group using Ethereum-based tokens. This offering will effectively allow most people in the world to indirectly invest in commercial real estate in Germany (investors from the U.S., Australia and Iran are blacklisted from participating in the initial sale). This real estate token sale by Fundament Group is one of the largest and the country’s first blockchain-based real estate bond offering to retail and institutional investors.
Other good examples of applying Blockchain include:
Utah Using Blockchain-based Voting Application
A county in the U.S. State of Utah will be offering the Voatz mobile voting application based on Blockchain technology to military absentee voters and their family members living overseas in an upcoming municipal primary election.
Voting applications based on Blockchain make a lot of sense because once a vote is cast and recorded on the Blockchain, there is no central database that an attacker can hack to alter results nor is there a need to trust a central authority (or individual) with access to a central database. This would be an important feature in some nations where voting results have been challenged. Deploying a distributed ledger database removes the need to trust a central authority and significantly reduces the susceptibility to cyberattacks that may be possible with a centralized database.
Blockchain Based ID Management Systems
Migrating identity management to a Blockchain-based solution will in the future eliminate the need to make a trip to your nearby Department of Motor Vehicles (DMV) to renew your ID card or a local government agency to obtain an international passport. Deploying artificial intelligence (AI) techniques such as liveness detection, facial recognition and identification and other biometrics attributes, we believe current ID management systems will eventually evolve to a self-sovereign identity system. Samsung Electronics, in collaboration with major industry partners, plan to launch a Blockchain-based mobile and global ID system in 2020 to help accomplish this vision.
Many other industry heavyweights such as Microsoft and IBM are also offering similar solutions which I wrote about in a prior blog in May.
We are seeing increased business use cases for Blockchain technology, however, some of the Blockchains on which these applications are based use Proof-of-Stake (PoS) or are planning to switch to Proof-of-Work (PoW). Proof-of-Stake based Blockchains are in some ways centralized because the record keepers (miners) are either given permission to participate by owning a stake unlike Proof-of-Work based Blockchains.
At BlockMint, we believe that all Blockchain applications should use decentralized Proof-of-Work based algorithms as I discussed in my blog last month.
Chief Executive Officer