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Blockchain's application

Blockchain technology has revolutionised the digital system of record. However, the full potential of this technology has not yet been fully discovered. Right now, blockchain is used in two ways: as a system of record (it's obvious), and as a platform.

As a system of record, blockchain is used for many things, for example for establishing a digital identity. It uses cryptographic keys, one public and private, to create a signature. Every user has their own unique digital signature. This way the user has maximum privacy, while not having a 100% anonymity. Transactions made by the said user can be traced, but his personal information won't be public.

Another use of blockchain as a system of record is of blockchain is tokenization. For the purposes of authenticating a unique physical item, they are paired with a corresponding digital token. That means that tokens are used as a means to bind the physical and digital worlds. These digital tokens are useful for supply chain management, intellectual property, and anti-counterfeiting and fraud detection.

The last use of blockchain in this category is inter-organizational data management. The world of gathering and distributing information has been changed by the blockchain technology.

As a platform, blockchain has two main uses - smart contracting and automated governance.

The first case, smart contracting, allow the performance of credible transactions without third parties. Smart contracts seek seeks to use information and documents stored in blockchains to support complex legal agreements.

As for automated governance - just look at Bitcoin. Bitcoin IS automated governance in itself, which means that it doesn't need any controlling body.

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