Blockchain Finds New Use Cases Beyond Crypto
In the great debate over cryptocurrencies – what they should be used for, if they have a place in day-to-day trading – at least some consensus seems to be forming:
Namely that blockchains, the public digital ledgers that underpin all of this, have utility far beyond the possibility of crypto transactions (between buyers and sellers).
In one example, as reported by The Wall Street Journal, Pyth is a new blockchain-based service developed by Jump Trading Group.
Overall, as the Journal notes, Jump is providing real-time free data (after all, speed of data delivery is critical) which in turn is fueling a number of crypto projects.
Pyth is backed by the Pyth Data Association, in turn backed by a number of financial firms trading huge volumes (measured in billions of dollars) of assets. Data from some of their business activities is broadcast over Pyth’s network. This data, in turn, can be used by developers for the purpose of building applications that result in decentralized finance.
The idea (and practice) of using ledgers to use, store, and transmit data as a transmitted asset opens up a whole world beyond bitcoin, with which it has long been associated. In short, blockchain, at its best, is a transparent way to improve record keeping.
At a high level, a blockchain allows an exchange of agreed value between several parties, without an intermediary in place, that is, without a broker, bank, platform or agent.
In recent years, we’ve seen how a transparent, real-time ledger can streamline and speed up all kinds of interactions.
Examples abound, of course, especially when smart contracts, which are electronic and self-executing, can help transform, for example, the insurance industry, healthcare or finance. Immutable data records are free from any threat of manipulation and therefore do not require independent third party verification.
The blockchain embrace in India
To get a feel for the bifurcation between crypto and blockchain, at least in some neighborhoods, consider that, as reported in this space in recent weeks, the Indian government will introduce a bill in the next winter session of Parliament. which, among other things, will ban cryptos. – with the notable exception of cryptos which help promote the blockchain.
Also read: India’s impending crypto ban could limit Bitcoin to emerging and volatile economies
A little more in-depth specialist use cases – for example, specific financial contracts or the creation of ecosystems involving a limited set of parties – might be better served by private blockchains. Private blockchains allow the implementation of at least some “parameters” that limit access, and who is able to read / write data on the chain. Sourcing and supply chain tracing – where goods move, for example, from raw material to finished product to store shelves – could be better served by a private blockchain.
Bitcoin can evolve, bitcoin can go down, but the constant in the evolving world of digital assets may be the blockchains themselves.