Table 2-2 combines the previous lists and shows how blockchain technology can solve some common issues that enterprises encounter.
TABLE 2-2 Business Requirements and Blockchain Features
| Business Requirement | Blockchain Feature |
| Controlling and recording transactions | Blockchain excels in transferring value in untrusted environments. |
| Reducing or eliminating excessive cost | By eliminating middlemen, blockchain can reduce overall, and incremental, transaction-processing costs. |
| Pursuing efficiency | Blockchain increases direct interaction among transaction participants and automates many steps in transactions, decreasing settlement time and reducing inefficient waiting time. |
| Preserving artifacts for analysis | Because existing blockchain data can't be changed, a historical transaction record is guaranteed. |
| Protecting availability through redundancy | Each node of the blockchain network maintains a copy of the blockchain, so the failure of any node has no effect on the overall network’s capability to access blockchain data. |
| Exposing data without compromising privacy | Blockchain technology promotes data transparency. Because all nodes maintain copies of the ledger, the data is available to any authorized user. |
Examining Blockchain Use Cases
Many good examples of use cases for blockchain technology exist. In this section, you look at just a few. See if you can think of a good blockchain use case in your own organization.
Managing physical items in cyberspace
One of the earliest large-scale blockchain use cases was the management of supply chains. The process of managing products from the original producer all the way to the consumer is expensive and time consuming. With today’s product-tracking applications, it can be difficult for consumers to know much about the products they consume. Some products, such as electronics and appliances, may have descriptive tags that identify places and times of manufacture, but most products we consume don’t provide that type of information.
Implementing supply chain management provides multiple benefits. The first is transparency. Producers, consumers, and anyone in-between can see how each product traveled from the place it was manufactured or acquired to where it was finally purchased and the time it took to get there. Inspectors and regulatory auditors can ensure that each participant in the supply chain met required standards.
This increased transparency occurs while eliminating unnecessary middlemen. Each transfer in the process occurs between active participants, not brokers.
Handling sensitive information
Healthcare has become one of the most popular topics of conversations ranging from politics to research to spending. It seems that everyone is interested in increasing the quality of healthcare while reducing its cost. The availability of large amounts of digital data have made advances in healthcare possible.
Researchers can analyze large amounts of data to explore new treatment plans, increase the overall effectiveness of existing drugs and procedures, and identify cost-saving opportunities. This type of analysis is possible only with access to vast amounts of patient medical history. The main problem for researchers is that a patient’s electronic health record (EHR) is likely stored as fragments across multiple practices and databases. Although ongoing efforts to combine these records exist, privacy is a growing concern (we’re back to the trust problem) and progress is slow.
EHR management is a good fit for a blockchain app. Storing a patient’s EHR in an Ethereum blockchain can remove the silos of fragmented data without having to trust each entity that provides or modified parts of the EHR. Storing the EHR in this way also helps clarify the billing and payment for medical services. With comprehensive medical procedure history all in one place, medical service providers and insurance companies can see the same view of a patient’s treatment. Full history makes it easier to figure out what should be billed.
Another advantage that blockchain apps can provide in the healthcare domain is in managing pharmaceuticals. Blockchain EHRs provide the information for medical practitioners to see a full history and current snapshot of a patient’s prescription medications. It also allows researchers, auditors, and even pharmaceutical manufacturers to examine the effect and possible real side effects of their products. Having EHRs available, yet protected, can provide valuable information to increase the quality of healthcare services.
Conducting financial transactions
Financial services are interactions that involve some exchange of currency. The currency can be legal tender, also called fiat currency, or it can be cryptocurrency, such as Bitcoin or Ethereum’s default currency, ether (ETH). Blockchain apps do a great job of handling pure currency exchanges, or exchanging some currency for a product or service. Financial services may center on handling payments, but there are more nuances to the many transactions that involve money.
Another rich field for blockchain in the financial services domain is real estate transactions. As with banking transactions, Ethereum makes it possible to conduct transactions without a broker. Buyers and sellers can exchange currency for legal title directly. Smart contracts can validate all aspects of the transaction as it occurs. The steps that normally require an attorney or a loan processor can happen automatically. A buyer can transfer funds to purchase a property after legal requirements are met, such as validating the title’s availability, and filing required government documents. The seller receives payment for the property at the same time the title transfers to the buyer.
Chapter 3
Identifying Blockchain Data with Value
IN THIS CHAPTER
