Blockchain technology has been referred to by many as being “for nerds” and “uncool”.
The issue, however, is that generation Z has embraced the tokens that have been backed by blockchain technology.
Cryptocurrencies have been accepted by generation Z far more easily than bank accounts and other forms of financial features.
What Makes Blockchain Technology Cool?
Blockchain technology is cool for many reasons. Firstly, when it comes to legacy systems. Blockchain technology overcomes most of the inefficiencies that other legacy systems offer. The coolest aspect of blockchain technology is the fact that every record entry can be verified independently.
This has led to many people who believe that blockchain technology will rule the world in this decade. While this is possible, the many issues that surround adoption have to be tackled first.
One way of getting adoption underway
is to create adequate legislation that can cater to the applications of blockchain technology.
A great example of this in practice is the creation of a regulatory framework for the effective implementation of a blockchain-friendly environment by the Chinese government.
With such a scenario in play, governments will be able to spur the early adoption of blockchain technology.
With this in mind, the coolest applications of blockchain technology are described below.
The Use of Blockchain Technology in Auto Financing
When it comes to buying a car, many people have thought that legacy systems had solved all of the problems associated with auto finance. The truth is that those problems had been solved but at a price that has got many wondering if the implementation of such systems are worth the costs in the first place.
Blockchain technology, however, has solved the basic problems that beset legacy systems when it comes to auto finance. A perfect example of this is the solution implemented by finance behemoth JP Morgan. This solution provides an end-to-end solution that takes care of all the exigent circumstances that usually arise in the finance process.
With the inclusion of smart contracts, the auto financing solution could provide all members of the value chain in the finance process with the tools needed for the execution of standards, rules, and regulations based on how the operations of auto financing work.
This also creates a new paradigm. That is one where conditions of purchase and repayments are driven mathematically accurate conditions rather than by those that are left to the coincidence of events.
It also raises the bar and reduces the risk of fraud for the sellers and the financial institutions themselves. Advanced solutions such as geofencing and other limiting mechanisms in the case of default or theft produce ecosystems that are devoid of mistakes. Owning a car could become as easy as just going to the dealership and scanning your thumbprint! How much cooler can it get?
The Use of Blockchain Technology in the Logistics Industry
When it comes to moving things around many people don’t consider the many intricacies that are required to move things across distances. Legacy systems have a hard time fulfilling the requirements of great logistics systems. Decentralized ledger technologies (DLTs) on the other hand will be able to fulfill these requirements at the least cost and within perfect security parameters.
One such example that does this within a wider corporate framework is Walmart Canada’s logistics system. This system has been fully deployed across Walmart Canada and it fulfills the needs of the system. Walmart has been able to integrate a blockchain solution that can take care of its internal logistics needs.
Logistics systems globally have issues that are trivial to other value chains. Issues of accuracy, security, cost, and speed. Blockchain technology as the first of the decentralized ledger technologies provides proof-of-concept that triple entry accounting systems are a great basis for innovation in global supply chains.
The Use of Blockchain Technology in International Diplomacy
Because decentralized ledger technologies (DLTs) require no central authority for confirmation of transactions, they can become the perfect tool for donations to international organizations.
The use of first-generation blockchain systems (BTC and ETH) within the United Nations system is a proof-of-concept that the given scenario is possible. The most recent example that comes to mind is the use of both Bitcoin and Ethereum as the basis for donations to UNICEF.
With global emergencies that concern children occurring daily, the issues that traditional financial systems face when it comes to getting funds across to non-profits will always exist. Blockchain systems provide a way to mitigate the risks that such systems encounter.
Though the above-given scenario is a test-case, this can serve as one-way social change can be effected on a global basis without going through traditional financial systems. Such systems aren’t usually adequate for the emergent needs of international organizations that face problems by the second.
Overall, we are yet to see the effect of the implementation of blockchain technology in traditional systems. Blockchain technology itself is still a neophyte when it comes to implementation. This, however, doesn’t mean that blockchain technology isn’t ready to take over the world. It may just be that it is the disruption that humanity needs to move on to the next stage of its evolution!
