Blockchain | The 3 best benefits of applying Blockchain

 

The 3 best benefits of applying Blockchain

[caption id="attachment_4827" align="aligncenter" width="362"] Benefits of applying Blockchain[/caption]

Today, I divided into three main propositions about the benefits of adding blockchain & cryptocurrency to the existing business scenario.

-Reduce the 'trust cost'
-Increase efficiency by decentralizing third parties
-Business that adds value to data

Of course, as a business is an organism, three points are complexly intertwined in one project.

1. Reduce the cost of trust

[caption id="attachment_4834" align="aligncenter" width="413"] Trust[/caption]

In fact, it is one of the reasons why blockchain is being taken seriously even by large enterprises.

Whether on a private blockchain or a public blockchain.

As dispersed entities share records in a database called blockchain, the ‘trust’ that has been built up through third parties can be embedded in the system.

This is an advantage that applies to many fields. The most representative example is overseas remittance!

Even if Internet banking is loved in a country, the moment it crosses the border, money becomes a heavy ass.

In order to change the money of country A to the money of country B, the dollar is interposed in the middle.

A fee is charged in the process of exchanging currency. However, if you just exchange it directly, what can you trust to exchange money in a hurry?

The pitfall is that the cost of trust is high, and it is difficult to reduce this cost with traditional methods.

“The fastest way to send money from New York to London is to drive to the airport, load the money on the plane, and fly to London. It makes no sense."

“If we can solve this costly problem with blockchain, it will be beneficial not only to consumers and banks but also to the entire financial ecosystem.”
(Ripple CEO Brad Garlinghouse)

In the case of blockchain, since it is a distributed database, asset (?) transactions that go here and there are recorded one by one in each ledger.

Even if one person manipulates the ledger, it is difficult for a transaction that did not exist to be recognized.

Blockchain benefits in Identity Verification

[caption id="attachment_4835" align="aligncenter" width="332"] Identity Verification[/caption]

Blockchain’s decentralization, irreversibility, and transparency to participants provide a new solution.

In a similar vein, a Syrian refugee could be given a digital ID by uploading his or her identity to a blockchain, for example.

In order to verify your identity, you must also create a passport and have your identity checked at the airport every time.

You must also have a resident registration card certified by the country... It is a trust cost to prove that you are me.

What if you upload your identity information on the blockchain? Scattered validators will manage the information in a database that is difficult to reverse.

It is a system that helps to trust the identity information of refugees who came to another country as blood and blood and homeless people who were embarrassed by losing their identity documents.

Of course, data records that correspond to sensitive information seem closer to the form of a consortium or private blockchain in which designated entities share a ledger than a public blockchain that is open to the public.

2. Stay away from third parties, every blockchain project says.

[caption id="attachment_4836" align="aligncenter" width="407"] Third Party Involvement[/caption]

They say they will change the world. In particular, they call for decentralization of third parties, Uber and YouTube, who take the cost from the middle.

Obviously, the starting point of blockchain is decentralization, so it is important to get out of the influence of a centralized third party or at least reveal the insides.

But that's it. Do Uber and YouTube really do nothing and only pay brokerage fees..?

A lot of developers working at Uber are trying to create an exquisite connection between drivers and customers using machine learning.

YouTube provides the most effective recommendation service to users with sophisticated algorithms.

In that way, they become a platform and even build passionate fans and communities due to the solid content it contains.

“The role of a third party is not simple, can this be replaced by a network called blockchain? Does adding cryptocurrency become a crowded platform?”

This is why the slogan of ‘decentralizing third parties with blockchain’ is not very attractive.

Instead, there is something like that. If you feel that the profit distribution is not fair, or if you feel that the platform is ‘lazy’, it is likely to apply the decentralization and transparency of the blockchain anew at this point.

Utilization of Blockchain in Advertising Market

[caption id="attachment_4837" align="aligncenter" width="282"] Advertising Market[/caption]

This is the background of the movement to utilize blockchain in the advertising market.

We entrust the publicity with an advertising agency or we diligently expose advertisements on the platform, but it is difficult to guess how effective this method is and whether it is good value for money.

Most of us dream of accurately targeting potential customers directly, without involving a third party.

For projects that try to change the advertising market with blockchain, it is possible to determine how and based on what data and how advertisement targeting is done, transparently and rationally.

There is also a sense of the problem that needs to be shown.

This is another point from algorithm advancement. Sometimes it is argued that the inefficient part of the advertising market can be solved by just introducing the blockchain, but absolutely no

The point is to use a transparent data platform instead of ‘third parties that the product had to go through to find the right customer.

3. Add value to user data

[caption id="attachment_4838" align="aligncenter" width="323"] User[/caption]

In the case of questions 1 and 2, it is a nuance in which the characteristic of the underlying technology of blockchain acts as a strength.

Because blockchain is a distributed database, it is difficult for one person to tamper with (irreversibility) and the database is not hidden from network participants (transparency).

Cryptocurrency is another strength.

Thanks to the above properties of the blockchain, data from cryptocurrency transactions work like digital assets.

They say they create a so-called incentive structure. A new type of “data business” becomes possible by providing certain rewards in the form of cryptocurrencies that were not given to users in existing businesses.

It is in the same vein that some private blockchain projects develop and issue cryptocurrencies even though they do not need to be rewarded to maintain the network.

However, in the blockchain blog service, you can receive cryptocurrency as a reward in the name of contributing to community revitalization or from users who have consumed content.

The aforementioned changes in the advertising market require ‘user data’. From the standpoint of hitting ads, I want them to gather a lot.

Why do users have to... Cryptocurrency is emerging at this point. It's like a bonus.

If I get coins while controlling my data as a user, there is no reason to hesitate.

It means that you can create synergy by combining blockchain and cryptocurrency with any data business.

We don't just add value to user data used for marketing in the advertising market.

What if we could develop microinsurance products that can be applied to our daily life with data accumulated through IoT products and smart cities?

Conclusion

[caption id="attachment_4839" align="aligncenter" width="317"] Conclusion?[/caption]

Once here! We took a quick look at the benefits of applying blockchain to real business scenarios.

In fact, it is a story that each of us presents as a blueprint when we go to a blockchain meetup.

Obviously, since it is a young technology, there are many things that are lacking, but related stories have been covered a lot in articles. In this article, I thought about the specific advantages of technology.

I hope that it will open up a new landscape on its own while resolving the inefficiencies that existing industries have not been able to solve.