Top Five Key Areas in Life Where Blockchain and the Tokenization of Assets is Ripe for Change
The blockchain technology was already found to have a near-unlimited amount of potential use cases, and the new ones are being discovered and added to the list almost on a daily basis. While many of them are ways to improve something that is already possible, there are also those that show potential for bringing new technological advances, something that was previously deemed impossible with the technology that predates the blockchain.
The collaboration between the AI and blockchain industries, tokenization of assets might allow us to order various goods and services that would be performed or delivered via autonomous machines. When the work is completed, users might simply pay with cryptocurrency. The entire transaction may have seemed like something from a Sci-Fi movie only a few years ago, but in a few more years — it might become a reality.
With that in mind, here are several ways in which the everyday city life as we know it may forever be changed through a combination of robots and blockchain technology.
1. Revolutionizing The Supply Chains
As online shopping grows bigger as a trend, it has the potential to replace the traditional methods of shopping. However, the change in the behavior of buyers also results in the change in the behavior of producers, and, as an extent — the supply chain.
For starters, things like production and warehouses where the goods are being kept should move closer to cities, since this is where the majority of their customers live. Furthermore, delivery services need more employees who would bring the goods to the buyers. Tasks such as these will likely fall to machines which will be able to perform them without human surveillance, which will not only speed up the process but also reduce the costs that companies are dealing with.
Many households around the world already use smart devices and IoT technology. If all of them get connected via the blockchain technology, same as delivery drones, devices in our homes would know when there is a lack of certain goods such as groceries, and they would be able to order them and even pay for them via smart contracts.
Ethereum's infrastructure, for example, allows humans to interact with robots, as well as robots to interact with other robots. While many technological aspects need perfection in order for something like this to be possible, the chances are that it will become a new trend at some point in the future.
2. The Origins Of Products
Some of the top concerns regarding any product revolve around their quality and place of origin. There have been numerous cases of scandals regarding certain products, the way they were made or grown, shipped, or any other aspect of their existence. Consumers wish to know that the goods they are purchasing are coming from a trusted source, and are managed by trusted services.
Because of this, tracking the products' origin via blockchain still stands as one of the most supported use cases. Each stage of production can be documented and stored on the blockchain, without the ability to manipulate, change, or delete this information. That way, buyers can know anything about the products they are interested in, and a lot of this information may impact their decision whether or not to buy.
This practice holds a lot of potentials, as it will root out any shady practices, and only the top quality goods will reach the shelves, and in extent, consumers.
3. Analyzing Buyers' Behavior And Decision-Making
When creating a certain product, it is hard for producers to predict how the buyers might react to it, especially in the long run. This may lead to a number of problems, such as the shortage of goods when the buyers show large interest, or overproduction when there is lack of interest. These issues may have massive consequences for the company, depending on the industry in which the firm operates.
However, by connecting smart devices with each other and with blockchain technology, information regarding consumer behavior can be analyzed, and if the machines notice a change in consumers' behavior, they can provide a signal to producers that certain products' need to change, or that the company is producing too much or too little.
4. Precise Monitoring Of The Environment
Protecting the environment is one of the key problems in the modern world, and any changes affect people as much as the environment itself. The systems that are being used right now, for example, those for monitoring the quality of water, are monitored by cities and states, but the cost of the authorities doing these checks can be quite high, while at the same time it can remain ineffective.
Collecting information, processing it, and acting upon it is a slow process, and in cases that there is something wrong with the water supply — those affected need to know straight away.
This is yet another use case where the collaboration of drones and blockchain may have a large impact, and possibly even save lives in extreme cases. Machines can regularly check the condition of water in reservoirs, record that information on the blockchain, and monitor the state of the water supply, quickly noticing if there were any changes. The information can also be made public instantly so that everyone would know the state of the drinking water in their residence.
This alone would be of great value to the safety and health of city dwellers, and it still represents only one use case of this kind. Other potential tasks may include the drones helping environmentalists, emergency services, and others tasked with watching over the environment within a certain territory.
It may also help prevent illegal deforestation, notice forest fires early, or prevent illegal land seizure, excavations, and more. All of the information would be safely stored on the blockchain, while the data is constantly updated with fresh reports, straight from the field.
5. The Creation Of New Markets
Apart from bringing convenience and higher security, blockchain technology can also open up access to markets that were previously available only to professionals and experts. On the other hand, it can also create some brand new ones. Tokenization of assets can create a digital equivalent of anything of value, which allows easier methods of sharing ownership of these assets, but also easy sale and purchase.
It can open up a green capital market for individual and businesses, and even entire countries. Another very important aspect of blockchain is that it creates markets that are decentralized. This will allow people to communicate with producers, robots, or each other directly, without the need for any third party or delays that may come as a consequence of overly-complicated procedures.