Month: May 2020

Blockchain Use Case – Smart Grid and Energy

After the blockchain hype has subsided, the question arises as to which use cases for blockchain are conceivable for our society. Below we present a possible use case.

If you buy electricity nowadays, it usually comes from a central location, is transported through a centrally managed power grid and ends up with the consumer. So far, electricity has always followed this path. This was mainly due to the fact that not many households were able to produce their own electricity. However, this could change quickly with the current developments in the field of smart grids and blockchain.

 

End consumers become producers

Now end consumers themselves are becoming producers in which they can feed electricity into a network themselves using innovative solar modules on the roof. Many providers of inverters, solar panels and energy storage devices are entering the market and are offering end customers a solution to produce their own electricity.

If this electricity is not used, the producer can provide the energy that is not required in the neighborhood. The Smart Grid does this. This power grid is intelligent in that it enables intelligent distribution of the electricity.

 

The bill from the blockchain

Now the blockchain makes it possible to track the amount of electricity that a particular household has given to the smart grid in a way that is not counterfeit-proof. The blockchain enables transparent recording of the electricity offered and the quantity purchased. Since this form of offering and purchasing energy works like a marketplace, the blockchain can also automatically conclude purchase agreements via smart contracts. A smart contract integrated into a specific Bockchain protocol therefore carries out all actions up to an agreement and the electricity can flow.

 

Book Recommendation

In her book Token Economy, Shermin Voshmgir describes in great detail what the blockchain actually is, how tokens will be designed in the future and what use cases exist for these tokens. It highlights both the development of tokens on the blockchain to date and the future economy that can arise around these tokens.

 

 

Blockchain Use Case – Supply Chain Tracking

After the blockchain hype has subsided, the question arises as to which use cases for blockchain are conceivable for our society. Below we present a possible use case.

If you currently buy a product, you have no insight into where the goods really come from, which steps they have gone through and how (or when) they came into the market. In the past, these value chains and supply chains were more nationally restricted, but in times of globalization they have become longer and more opaque.

 

Transparency through tracking

It is these lack of transparency that often make consumers despair. With its smart contracts and counterfeit protection, the blockchain offers an instrument to ensure this transparency. But how? Each processing step of a product can be mapped and confirmed on the blockchain. All entries created in the following steps confirm the previous steps and simply add another entry on the blockchain. This means that every service provider (generally an actor) is forced to confirm receipt of the goods, carry out his work and is also obliged to leave an entry on the blockchain when the goods leave. What sounds like a lot of work here will happen automatically in practice and will be handled using technologies such as QR codes or scanners. As a rule, not every single unit is recorded for large quantities of a product, but only the delivery (or batch) to which the product belongs.

 

Democratization of the value chains

For the first time, this gives consumers the insight they need to make an informed purchase decision. In the future, this information will be found on foods, for example. With the help of an app you can get information about the goods. However, this solution of the goods on the blockchain offers further advantages. For example, faulty goods can be traced faster and a more targeted recall process can be started.

 

Book Recommendation

In her book Token Economy, Shermin Voshmgir describes in great detail what the blockchain actually is, how tokens will be designed in the future and what use cases exist for these tokens. It highlights both the development of tokens on the blockchain to date and the future economy that can arise around these tokens.

 

 

 

 

Blockchain Use Case – Art and other assets

After the blockchain hype has subsided, the question arises as to which use cases for blockchain are conceivable for our society. Below we present a possible use case.

Art and other possessions (assets) are often objects that you consider investment or just for hobby. But if you want to pay off these assets, you rarely find a liquid marketplace. Also, possession of such goods is usually 100% with one person. This makes it difficult for a collective of private art lovers to share ownership of a painting (or the rights to it). There are other assets that do the same. Historic cars and general collectibles suffer from the same problem.

 

Democratization of art

With the help of the blockchain, these assets can be tokenized. This means that you issue shares (tokens) for a piece of art, for example. On the one hand, these share certificates confirm the authenticity of the work of art and, on the other hand, they are a right to own a share of the work of art. This also makes it possible for small investors and private individuals to own art and to benefit from resale or the general commercialization of the painting. These tokens are on the blockchain and are stored there against forgery.

 

Art and new liquidity

 

Book Recommendation

In her book Token Economy, Shermin Voshmgir describes in great detail what the blockchain actually is, how tokens will be designed in the future and what use cases exist for these tokens. It highlights both the development of tokens on the blockchain to date and the future economy that can arise around these tokens.

Blockchain Use Case – Real Estate

After the blockchain hype has subsided, the question arises as to which use cases for blockchain are conceivable for our society. Below we present a possible use case.

Real estate is always an interesting investment, especially if you don’t want to be exposed to the risk and volatility of the stock exchanges. Many properties can currently only be obtained with loans and high collateral. In addition, the high administrative effort and costs incurred by the authorities ensure that small investors in particular cannot get through to buying a property. If you buy a property together with other investors, you also have costs for the company that owns the property.

Lower government costs

Real estate investments for everyone

The blockchain helps with two important core aspects. On the one hand, this splits an asset such as a property into many small parts that you can invest in without an immediate middleman. The second aspect is the liquid market, which the blockchain makes visible. Going to a real estate agent is the current way to get real estate, or to sell real estate. A decentralized network, which digitally manages all shares in real estate, can use digital portals and smart contracts to help make a not always liquid market visible and, by simplifying the buying and selling modalities, more liquid. The gatekeeper function of real estate agents is no longer required, as market participants are made visible to all investors and owners of real estate.

 

Book Recommendation

In her book Token Economy, Shermin Voshmgir describes in great detail what the blockchain actually is, how tokens will be designed in the future and what use cases exist for these tokens. It highlights both the development of tokens on the blockchain to date and the future economy that can arise around these tokens.

Blockchain Use Case – Stocks

After the blockchain hype has subsided, the question arises as to which use cases for blockchain are conceivable for our society. Below we present a possible use case.

Contrary to popular belief, blockchain is not just a decentralized means of payment. The blockchain is more of a decentralized management tool. As a decentralized network, the blockchain is also able to manage assets without a central middleman. These assets are divided into many small units. These units are called tokens. These assets are managed with the help of smart contracts. A smart contract offers mechanisms that monitor previously defined events and trigger certain events when they are fulfilled. These events can be payments or even a change of ownership of a token.

Current State

Shares are currently traded on exchanges. Trading in stocks is already highly automated and is mapped almost exclusively via computer systems. If a company wants to go public, it has to meet many requirements. This usually means that only larger companies dare to go public and smaller companies (such as startups) avoid the stock exchange. Startups usually rely on VCs (venture capital) to manage their financing.

Stocks on Blockchain

With shares on the blockchain, a decentralized P2P network, startups can also offer their shares publicly without any problems and thus collect money for shares. Why does something work? The administrative effort that a company has on the stock exchange can be encoded in smart contracts, so that apart from computing power, there is no further expensive manual administrative effort. This clears the way for the democratization of the stock market. Individual citizens are thus able to participate in financing rounds of startups – individually or, which makes more sense in view of the risk – in a syndicate or as a participation in a fund. This fund then invests, for example, in young companies from certain areas.

 

Book Recommendation

In her book Token Economy, Shermin Voshmgir describes in great detail what the blockchain actually is, how tokens will be designed in the future and what use cases exist for these tokens. It highlights both the development of tokens on the blockchain to date and the future economy that can arise around these tokens.