Many different use cases for blockchain have been tried and tested over the last years by startups, corporations and governments alike. Some of them have found real world applications but most have not made it out of a proof-of-concept phase. Building on interactions with major blockchain actors at national level, the B-hub consortium has identified a number of particularly relevant use cases throughout the different ecosystems.
Our series of blockchain use cases articles features examples that, while varying greatly in terms of sectors and usage, have in common that they are currently applicable, somewhat mature – underlying technology exists and is available on the market – and implemented.
This fourth article deals with digital platforms for ecommerce payment transactions with crypto currency. Digital currencies can help to transfer from physical money to completely digital solutions. Cryptocurrencies are traceable and can be minted according to predetermined set of rules, which removes the risk of fake money printing. In addition, easy access to cryptocurrency wallets (software) can enable the unbanked to participate in the global economy.
Description and problem statement
Over 2 billion people are unbanked because of complexity and high requirements from banking institutions. The unbanked cannot buy goods online, nor access simple subscription services. From the retail side, usually payment processors and banks take a percentage of transactions, incurring higher prices for the consumers.
Creating a cryptocurrency wallet and using it does not require complexity. It is a fully online process. With blockchain technology at its origin, all the transactions can be monitored, so black market is hardly possible. With less intermediaries in the process, prices are also lower for the customer.
Why is blockchain particularly relevant to address this problem?
Blockchain provides traceability of asset creation and transparency for income and spending. It can provide pseudonymity or anonymity (depending on the project) and enables peer-to-peer exchange of value without the interference of a middleman.
How does it work?
A hash is created for every transaction to confirm the transaction validity. Digital tokens are transferred with the help of miners approving the validity of the transaction.
A new block is created for a group of transactions, securing the transactions in the distributed ledger that contain all transactions.
What are some examples of implementation?
GetHaven is one example of implementation. The firm commercializes an app that integrates private chat with cryptocurrency payments.
What are some examples of technology providers?
Want to see more blockchain use cases articles? Check out our previous articles on Notarization, timestamping and tamper-proof records ; Traceable ownership records for secondary market trading of digital assets ; Peer-to-peer consumers energy management and trading platform and our country-specific perspetives on blockchain adoption.