The Next Economy will be driven by 10 exponential technologies, one of which is the blockchain; the technology underlying Bitcoin. But it’s useful for a lot more than just Bitcoin. For example: storing data, governing, authorship and ownership, data management, digital identity, identification and authentication, voting, gambling, and more.
Framework for spotting opportunities where Blockchain can be applied
It’s safe to say that there are many areas where blockchain can be applied, we’re only limited by our imagination. Here is a framework to spot opportunities where blockchain can be applied:
- Fraud. If you are in an environment where there is a history, propensity, likelihood of fraud involved in various transactions then the blockchain can assist in reducing the likelihood of fraud actually occurring.
This is why blockchain is used in international finance transactions.
- Intermediaries (middle men). If you have an environment where there are intermediaries involved, then you might be able to dis-intermediate those parties if they really don’t provide value. For example, we can get average transaction settlement times from 2 days to 15 minutes by taking away middlemen.
- Environments with high throughput (number of transactions). Bitcoin can only do 10 transactions per second, while MasterCard and Visa can do 80,000, but it’s looking to increasing the throughput to 400,000 transactions per second.
- Stable Data. For a blockchain application, you don’t want volatile data. You want things that are going to stay the same for a while; such as land ownership titles and personal information.
For an even more strategic perspective, watch the video below that illustrates 19 Industries the Blockchain will disrupt:
The blockchain will be as game-changing as the internet, it matters more than you think. Listen to both my chats (here and here) with my buddy Mohit Mamoria if you want to have a more nuanced understanding of blockchain and its applications.