stackzero

Strong use cases that have emerged for blockchains are:

- Proof of digital ownership: currency and NFTs (anything non-fungible)

- Transparent voting: verifiable elections and governance ("DAOs")

DeFi has shown some incredible applications like uniswap emerge with now silicon valley backing.

Unfortunately DeFi is also rebuilding the house of cards we have in the current financial system, which only a select few will really understand and benefit from.

So what's next?

Governance.

The future for blockchain is all about semi-regulation in the western world. There must be an avenue for proper governing bodies to participate, even for simple things like verifiable dispute resolutions, yes and tax.

Currently software developers hold all the keys to governance due to technical entry barriers. e.g. there's a misconception that only X bitcoin will ever exist, actually bitcoin core devs could change this at anytime (of course with repercussions, forks, etc.).

If blockchains do not evolve to allow proper decentralized and judicial governance systems we will simply recreate the current state of things except with software developers in charge. Governments will then ban use of public blockchain cryptocurrencies and supplant them with their own private variants (see CBDCs).

Lastly, most people will be using blockchains in 10 years without realizing or caring as the UX improves.

All that said, it's an incredible space to be working in.

I want to debunk these statements once and for all.

Myth #1 Blockchain changes data ownership, giving power back to the consumer

Anyone who becomes privy to some data has some ownership of it. Blockchain doesn't change that. If you want to share something with only a few select people you need inherent trust or an NDA.

Myth #2 Blockchain can revolutionize supply chain

Its a datastore with some cryptographic identity checks and tamper proof guarantees. It can't prove that a package made it from A to B or that it stayed at some ambient temperature IRL. It only records that someone attested to that, not whether its true. An ordinary database will do for an audit trail.

Myth #3 It cuts out the Middleman

You dont need blockchain to cut the middleman out of indusrty X. Any service trying to do this wants to be the new middleman with lower service fees cos' blockchain!

Here are some axioms which I think will drive future blockchain use cases

1. The transfer of value must occur on the chain

This is why digital currency is the #1 use case. We're already accustomed to digital value transfers when we use modern banking, the transfer of value is a few digits on our screens.

2. If you can't do 1) then it must be enforcable off-chain

Take for example buying a house. I sign some papers at the bank and some more with an agent and then we all agree I own a house and owe the bank some money. We sign the papers because then its enforcable by law. Keyword "enforcable". If the legal system agrees a cryptographic signature on a digital record achieves this purpose then its as good as the paperwork.

We're a few years away from proper legal recognition of smart contracts. Ricardian contracts seem to be a step in the right direction.

Thanks for reading and hope it clears things up.