There are already many use cases for the blockchain technology and much more have to be thought of yet. We will show you some of the current projects and use cases for the blockchain technology with links to specific cryptocurrencies.
The most known blockchain technology adoption is for payment methods. In order to make a valid transaction, the payer and receiver need a payment provider or executer, in which both parties trust (i.e. a Bank or VISA). Blockchain technology can cut out these trust parties, because the data of every transaction is stored on a distributed ledger that everybody has access to and is validated by all users participating in the network. If you want to make a transaction through a blockchain network, the transaction needs to get verified by the community, the consensus. This makes it impossible to spend money twice, because the first transaction made is the one that is validated and stored on the blockchain. It also makes it nearly impossible to change the transaction history, unless someone can convince at least 51% of all participants to change the whole transaction history.
Blockchain based payment systems are verified through a consensus of a worldwide community. Thus, all users are able to spend and receive money without a trusted third party (a bank or VISA) being involved. Everybody can send money wherever, whenever to whoever they want. The transactions are likely to be cheaper than transactions through banks. The transactions are verified and stored on the blockchain, where everybody can see, that the money was actually spent.
(For more information click here)
The most known cryptocurrencies, that are a payment method, are the following:
Bitcoin, Bitcoin Cash, Litecoin, Vertcoin, Ripple, Dash, Stellar Lumens and many more
Open software platforms
The blockchain technology can also be used to create a public network system (a software), on which you can build your own specific application. You do not need to create your own blockchain network, instead you use networks that already exist. You can create your specific application and launch it on this blockchain based software. Then the software runs the code and you get the benefits of the blockchain technology. It is a little bit like using e-mail through the internet without the need of having your own internet.
Cryptocurrencies that are such a network are: Ethereum, Neo, EOS, NEM, Cardano
Resource Management and sharing
One of the more innovated uses of blockchain technology is the sharing of computational resources such as CPU, Bandwidth and Storage space. Setting up your computer as a node in the network, others can rent your unused computing power, mitigating the expense companies have to spend on creating and managing their own servers. With this technical application, just one A.I. company saves $125 million a year, allowing and making way for A.I. to become a reality. Other than A.I, other services include: cheaper cloud storage, less need for high end, expensive and resource dependent computers,more useful and cheaper VR programs and last, but definitely not least, an all new internet framework!
Cryptocurrencies in this field: Sia, Golem, Substratum, DeepBrain Chain
Through blockchain technology it is now possible to link a possession of a physical tangible item (shoe, gold, property) or intangible assets (patents, carbon credits, copyrights) or any kind of data (ID) to a token (digital asset). The digitization of assets could help to solve problems we have today. For example, it could make supply chain management traceable. This would mean, that it is possible to track down a commodity and have access to information about the product, its production, its transportation or whatever information is stored on the blockchain.
Another problem the digitization could solve is manipulation on stock markets. The blockchain technology could keep track of every transaction or trade. Therefore it could keep track of where the digital assets are. Instead of papers that symbolize assets on the stock-market, consensus verified tokens now represent the assets. The difference is that nobody has to be trusted, that these tokens really do represent the value they claim, because it is ensured by the blockchain. Blockchain technology could alter the market as we know it. It could change the market to a peer-to-peer way of trading. That could help to prevent financial crisis like the housing bubble in 2008.
The question about what assets can be tokenized is a current issue. Many companies try to solve problems concerning tokenisation. What if the token is a partial right of an asset (i.e. a song) or a complicated type of asset right? It is not clear yet if all such assets can be tokenized.
Cryptocurrencies / tokens:
Propy, Sandcoin, DigiPulse,
Data is a valuable asset. Whether it is your health data, transaction history, bank account information, testimony - data has to be stored somewhere in a safe and secure way. Instead of trusting central authorities to keep your data secure and trusting them to not engage in fraudulent activities (sell data for money), we can now store all kinds of data in a blockchain. This also prevents the risk of a hacking attack on the central software, because data is saved distributed on many nodes. Thus, it is possible to access data from anywhere in the network but your personal identity (private key) is needed in order to do so.
If you are signing a contract, have a college degree, health records, certificates etc, it can all be more secured and accessible by creating a unique digital identity that tells the system that this is in fact you. Through the hash-function you can ensure that you sign the right contracts that the company signed, you can ensure that your data is linked to your identity and therefor not altered or sold off.
Pillar, The Key, Civic
Blockchain technology can allow us to trade peer-to-peer. Instead of trading like we are used to, where we trust in the ownership of an asset of a seller, we can create platforms that enable buyers and sellers to trade and trust so called smart contracts, that ensure the ownership.