A smaller-than-brief overview of what blockchain can mean for organisations and institutions in the future

After what is on blockchain and what for, we have now come to ‘why is blockchain’. And yes, this is a blog where we question its existence but refrain from pushing it into an existential crisis.

So, without further ado, here it goes…

The network would and is making way for many organisations which, instead of relying on an intermediary to facilitate transactions, trust the software and transact with their customers directly. As a real-life example, Consensys real estate is a blockchain use case whereby you can own a percentage of real estate in the form of tokens that will be stored digitally. At the same time, you can be in control of and manage the financial and legal processes of your assets on the same database.

Apart from this, the shared ownership would grant you voting rights in terms of housing management, renovations or just merely who to rent your home to. The voting rights would be in proportion to your share in the property. Owning a set percentage in real estate would allow you to mix and match with different investment opportunities rather than putting all your money in one real estate and hoping for the best. You can learn or discover more here.

Particular lines of code in the blockchain network, that can also be specified as contractual agreements between certain parties, in theory, and are automatically executed if a certain condition is met.

E.g., assume that there is a written code on the blockchain that if the pandemic carries on till the end of this year (God forbid), movie-theatre owners Jim and Dwight would receive $50000 as insurance, given that they pay a set amount every month (same as insurance premiums). Due to something called Oracle which gives real-world information to a smart contract, it can know whether the pandemic persisted this year and pay the owners directly on the network. Since the written code is immutable, it would be automatically executed if the condition is met. So at least someone will be benefitting from this pandemic.

As a given benefit, it ensures trust and avoidance of any misunderstandings as the contract is already laid out on a distributed network so every party is aware of every condition on it.

The factors discussed are just two among the plethora of situations that can be explored and implemented with the help of Blockchain. And it is safe to say that it’s here to change the rigid models of many industries and institutions that we had earlier.

It would be safe to end it here as to not cause an information overload. Would be glad to answer any queries in the comments. You can also connect with me on LinkedIn for a casual chat on the wonder that is Blockchain. I will see you next time where we discuss Cryptography. Can’t wait!