It is often said that blockchains are only useful when they help coordinate economic activity in a completely decentralized and permissionless manner. For the most part, this statement holds true, but there are other features of blockchains, or rather DLT, that make them optimal for use within a corporate structure.
Finance and logistics are the top two sectors that are set to be revolutionized by the plight of blockchain. Peer-to-peer remittances propagated to the forefront by Bitcoin and more complex and intricate financial protocols, such as those seen on Ethereum are the primary drivers of innovation within the landscape of blockchain finance.
However, traditional financial entities are also finding a new world of use cases for blockchains, utilizing them for their ability to transfer data in a systematic and verifiable manner.
Even tokenization is not beyond the scope of financial behemoths. Allianz is looking to tokenize their insurance products to speed up the time it takes to ship them across the globe.
It is fairly obvious that finance is going to be the most radicalized industry in the face of the blockchain revolution. Most of these will not be permissionless networks that anyone can connect to. They will be permissioned blockchains that help send data seamlessly between parties that already trust each other. So, the main question most people have in light of the previous statement is: “Why is there a need for a blockchain if the parties trust each other?”
Firstly, information is sent faster across the globe in an organized manner. Secondly, even trusted parties sometimes resort to deception and manipulation to push their own agendas, such as profitability. A blockchain here allows for a certain degree of verifiability over a shared ledger, mitigating this risk.
To summarize, financial services is by far the most improved sector by blockchain, and this trend will continue to persist in the near future.
Energy, logistics, and any other industry that relies on a ton of data movement and has a need for verifiability are easy candidates for blockchain. Energy, in particular, is a fascinating industry, simply because blockchains more or less reduce the size of the overall industry size and concentration. Logistics is pretty simple to grasp, and it has been one of the more profound use cases for blockchain for quite some time.
With energy, the main premise of a blockchain is to better record usage data and to help facilitate peer-to-peer energy transfers from one property to another. This entire premise relies on each property having its own solar panels (or any other energy-generating turbine) and turning the industry on its head. From one company supplying millions of people with electricity to people supplying themselves while being coordinated by a company.
Although this seems like a far fetched reality, it is in tune with the self-verifying, self-reliant principles of distributed technology.