Blockchain
1. Creates trust by default
2. Enables multi-party contracts
3. Provides control over individual privacy
4. Decentralises decision making
5. Democratises ownership of assets
6. Increases efficiency of transactions
1) Creates trust by default
A blockchain is a growing list of records. These records cannot contradict each other or be changed. Therefore they are particularly useful in issues underpinned by trust. For example, keeping records of academic history, identity, or property transactions. This role was previously filled by central bodies such as registrars, financial institutions and governments. Blockchain technology means they are often no longer necessary. It also enables trust to be created in areas where these gatekeepers were unaffordable. For example, giving the citizens of less developed nations the ability to develop a credit history, access a banking facility or formalise property ownership. The only way to alter a blockchain is for a person to control more than 51% of the network's processing power. The dominant blockchains are already at a size where this is almost impossible. Bitcoin's blockchain is more powerful than the 30 largest computers in the world.
2) Enables multi-party contracts
A trusted source of records can not only be used to search sequentially but also create contracts between multiple parties. On a blockchain, these are often called 'smart contracts'. These are contracts with no governing body. Instead, they act as an automatic escrow. Until the obligations of all sides have been met the contract is not deemed complete and the funds or other units of value released. Smart contracts can do these and other verifications automatically and repeatedly based on the trust created by the immutability of the blockchain. However, this doesn't automatically make a contract legally enforceable. So there will need to be communication with courts, further complicated by cross-border jurisdiction which the blockchain all but ignores. Though there are judicial benefits to the blockchain which may well see them come online as well.
3) Provides control over individual privacy
Blockchains give the user the ability to show or hide any personal data they'd like. It also centralises that information. Anonymity is the default and data can be carefully chosen to be released. For example when job hunting you could choose to show your professional experience when getting car insurance your driving history. This also increases the security of your personal data. With more data secured on the blockchain, it's not spread out over disparate companies with less secure security protocols. Data has been stolen from many large corporations due to weak encryption. For example 400 million accounts at Adult Friend Finder due to SHA-1 security. However, there is an important debate over the immutability of data. For example, at the moment, it's possible to 'change history'. If you change sex, you can backdate all records to agree with your current state. You would not be able to do that on a blockchain, records of that change would be there for all to see forever.
4) Decentralises decision making
Blockchain is said to automate away the centre. It does this by decreasing the costs of consensus so that more people can contribute to decisions which impact their lives. Each entity can decide on how to reach consensus. There are no more special powers for select groups such as the board members of limited companies. This empowers the edges of communities. Enabling a more equitable and innovative society. For example, through simpler and widely participated prediction markets and referendums. The transparency required of a decentralised network will make it easier to spot the warning signs of problems earlier. This could be useful in everything from small groups to national governments.
5) Democratises ownership of assets.
The distributed ledger blockchains create makes it much easier to register ownership of assets. This might be their sale, rental or creation. That, alongside ease of payment, makes it much easier to get paid for them. So owners can be rewarded more appropriately. For example, companies could pay out dividends in real time rather than quarterly when accounts are released. Contributors can build assets such as crowdsourced websites and get paid for the stake they create in real time. Artists can watermark their work. Their 'uses' 'views' or 'plays' will also be immutably registered and charged for. This is an area where the combination with micropayment is particularly useful. Current accounting principles can't go past two decimal places and accounting practices are unsuited to a high volume, low-cost model. Blockchains' low transactional costs and easy international reach enable such low-value high volume transactions.
6) Increases efficiency of transactions
The single ledger not only creates trust, it also enhances efficiency. The duplication of records, such as medical history and accounts is a waste of time and storage and increases the likelihood of mistakes. Large efficiencies are gained by the centralisation of data. A blockchain also acts as a continuous audit. It consistently verifies transactions so there can be no double accounting standards or poor reporting. This eliminates the need for costly middlemen and regulators. Due to these regulations, it's currently faster to send an anvil to China than wire money which is ridiculous. And, of course, the blockchain doesn't have office hours. There is an argument that the creation of blocks is extremely inefficient. The most powerful computer network in the world is being used to simply solve random mathematical puzzles. There is some truth in this and other methods of the creation of blocks are being worked on. Which implies there will be a network of competing blockchains and continuous integration costs. So check the speed and interoperability of blockchains you plan to use. As well as your own competency in principles, management, and programming.
