Some practical and impractical applications and implications of blockchain.
Blockchains are useful when you need to maintain an immutable history of transactions in which both parties do not trust each other as well as the intermediary. It is also useful in maintaining the anonymity of the participants in a transaction. Given these characteristics what does it mean for countries and societies at different levels of development and organization?
Close to dysfunctional government
Honduras recently has an incident where the top level bureaucrats went into the system allocated whole swaths of land to themselves. Such incidents do not inspire confidence in the authority which is supposed to safe guard people’s land rights and resolve dispute. A solution using blockchain to maintain land records was proposed to solve this problem.
Fiscally irresponsible government
When Argentina faced run-away inflation in 1989 people lost trust in the value of the currency. A currency such as bitcoin which is based on the blockchain technology can be a recourse for people in such a situation as no country can alter the supply of a digital currency forcefully.
Societies with irresponsible media
News based on photographs and videos taken on mobile phones are increasing becoming common on social media as well as main stream media. Unfortunately, so is their tampering and obfuscation. A system where all media is put on a blockchain before it is shared will ensure that it cannot be edited or deleted later on. Thus there will always be a permanent link to the that piece of information which can be visited in case of confusion or controversy.
Societies with poor banking services
Since trust is in distributed in the network peer-to-peer money transfers can be enabled with the inter-mediation by banks. The commission for mining will still have to be paid but the transaction can be recorded on distributed ledger and no one will be able to contest it.
Societies lacking unique identity documents
Services such as onename or keybase use blockchain technology to authenticate users uniquely. Other features like bio-metric information or attributes like address, birthdate, etc. can also be added on top of this.
Societies with authoritarian governments
The transactions on a blockchain are anonymous and thus difficult to track. They can be used for conducting transactions when the parties involved do not want to reveal themselves. Though the privacy provided is not as strong as it seems and there have been many instances when actual people behind the pseudonyms and keys have been identified.
Societies where stock exchanges do not function properly
Since a trusted intermediary is not needed blockchain can be used to trade digital assets or assets which can be uniquely represented in the digital form. This can also be applied to betting markets.