From time to time especially in the bear market, I feel like I need to remind you that blockchain is solving some key problems of the normal world. In this article, I would like to share with you some of the problems that blockchain is solving. Not making them and then solving, but just solving problems that already exist.
Workflow: “the sequence of industrial, administrative, or other processes through which a piece of work passes from initiation to completion.”
Most of the companies have their workflows well automatized within the company, but when multiple companies are taking part in such a workflow it’s hard for them to fully automatize the process. Why?
- Companies simply don’t trust each other with their data. So for them, it’s safer to do their part within their own workflow. After they are done what did they do? They will send an email, phone call or fax to the next company. Computers can’t read an email or phone call obviously so the next step for such a company is to implement it into their own workflow. Imagine we have more companies involved it’s a waste of time and resources.
How is blockchain fixing such a problem?
- Let’s have a look at LTO Network they are blockchain projects focused on such a problem. Also, they have some big clients like DUTCH MINISTRY OF JUSTICE
- They are enabling companies to work together in a trustless way.
- They are defining logic and carry forward in a trustless way.
How it is different from smart contracts?
- On the one hand, smart contracts are carrying some value, but on the other side live contracts basically just tell 2 parties how to interact with each other.
Finite State Machines
- This is how workflows get done by live contracts. Finite state machines are simply machines that are triggering some action based on the previous one. For example:
let’s say parties are about to sign a document.
- Step the document is being made
- Step it’s sent to review and now we have 2 options they will accept it which will trigger signing action or they will decline it and the system will send it back to step 1.
It’s happening all in a private blockchain, but for sake of bigger decentralization and security, it would be nice to have all the info stored on a public chain as well. However, how to do it in a modern world where GDPR is a problem that a lot of companies are struggling with. It’s simple, but yet so effective LTO is backing the private chain event on the public chain by hashing and recording it. This way everything is recorded on the public chain, but outsiders have no idea what was this for. So this is the 2 layers hybrid blockchain.
2. Banking, Financial problems
International money transfers
- We might don’t even realized it, but from time to time we might send our crypto thousands of kilometers with close to 0 fee and almost instantly. In bank, you have big fees in such an international transfer and it’s done in a few days or in one if you are lucky, but thanks God crypto is borderless.
Problem in Africa
- Millions of people still don’t have their own bank account in Africa, but over 90% of them have a smartphone. This is why crypto is so successful in Africa if you have a smartphone you can set up your own crypto account and send money worldwide. Buying crypto OTC or using ATMs.
- Users are looking for projects with all the features that are needed for adoption: Wallet, Fiat getaways and exchange all in a decentralized manner. A lot of projects are targeting Africa, but one of a few projects that got it all is, for example, Ferrum Network.
Home currency crisis
- For now crypto has experienced few local currency crises, hyperinflation, and other bad stuff. Let’s have a look at Venezuela with hyperinflation going on BTC was safe heaven as for money storage and of course for daily gods exchange as well. it’s ok to hodl gold, but it’s harder to use it in daily life since common users don’t really know how to liquidate gold, but with crypto, you just hit the exchange and sell what you gotta sell.
- Venezuela, Argentina, Cuba all those local crises were blessing for crypto however we don’t have an example of huge global crisis yet so we can’t be sure how bitcoin and crypto will act in such a situation.
- We live in a world where freedom is being taken away from us in the sake of safety. They are trying to get even our physical money away so the banks can track our every single transaction. And if they want to end us or our company they can freeze our bank account. Yes, it’s true and there are many cases like this. Using crypto you are holding your own money you are boss and on top of this everyone knows everything and nothing at the same exact time!