Thought Leadership
Beyond cryptocurrencies such as Bitcoin, there are numerous potential applications for blockchain – for example in ticketing or supply chain management. Courageous entrepreneurs and investors are needed to tap into this potential.
The crypto scene is jubilant: the Bitcoin price has finally surpassed its old all-time high. The so-called crypto asset managers can finally talk loudly about dream returns again. The most ardent critics are suddenly the biggest fans.
That the sales argument has changed? That it is suddenly being said that Bitcoin has arrived in the traditional financial industry and will therefore rise inexorably? Those who previously praised its independence from the traditional financial system now simply don’t care.
In any case, many investors from the eurozone have only just recovered the capital they invested in the last bull market.
Current Bitcoin price gains are insubstantial
I am a big fan of blockchain technology. I believe in a great future for Bitcoin and especially Ethereum – and that prices will rise in the long term through the sensible use of the technology.
However, the crypto scene is currently celebrating the market entry of investors who don’t care about the product at all and who already have enough market power to manipulate prices. The current price gains are insubstantial. Where is the question of meaning and purpose, where is the progress?
I currently have the impression that hardly any investment is questioned as little as a Bitcoin investment.
Technologies can develop best when prices are stable. There are countless good applications in the blockchain sector. Many are still in their infancy. However, they have enormous potential and show that blockchain technology can map many processes more efficiently, securely and cost-effectively.
However, the processes are currently difficult to calculate due to strong price fluctuations and enormous transaction costs. This is at least hampering technological development.
NFTs: each one unique
In my view, non-fungible tokens, or NFTs for short, are particularly promising. These are individual tokens, no two of which are the same. Just like a euro, a bitcoin can be exchanged for any other bitcoin or euro. NFTs, on the other hand, are unique, comparable to ID cards, for example: There are many millions of them, but each one is different.
This brings us to one of the top applications I would like to outline for NFTs.
All personal documents in one wallet
Imagine you have a blockchain wallet with a so-called soulbound token (SBT). An SBT is an NFT that is permanently linked to a wallet; the two can never be separated. This SBT contains all your personal data, it is your digital driver’s license, your digital ID card, your digital school or university degree and much more. You could then use this token to digitally identify yourself anywhere. At the airport, at authorities, at elections, at banks, at notaries – or wherever you need to prove your identity.
This alone streamlines countless processes because it allows documents to be created with maximum security. At this point, there is often concern that the data will become public, can be viewed or controlled by the state. But the opposite is actually the case. When I go to vote for mayor, what do my birthday, my eye color or my exact address matter? In fact, not even my name is relevant. The only thing that matters is whether I have the right to vote in this municipality. Only this information is relevant and only this information is released. However, if I live in another municipality, am not old enough, have already voted or am not eligible to vote for other reasons, I cannot take part in the election.
It’s similar with a traffic stop: I have to prove that I have a driver’s license. My private address, on the other hand, is initially none of the police’s business.
More efficiency when dealing with authorities
In this way, for example, all administrative procedures can be organized more efficiently. Residents’ registration confirmations, birth certificates or other official documents or information can be applied for or delivered easily, securely and in compliance with high data protection requirements.
There are numerous other use cases. They range all the way to a digital medical record that is managed by each individual. The content is not stored by numerous doctors and health insurance companies, but exclusively by each patient themselves. Content is then released to insurance companies or doctors for editing as required, but not for saving or copying.
Revolution in ticketing and logistics
Other areas in which NFTs and SBTs have disruptive potential are ticketing and logistics. Whether concert tickets, trade fair tickets, flight tickets or season tickets for soccer stadiums: processes in the ticketing system are simplified, illicit trading is prevented, costs are reduced and security is increased enormously.
Two people, each with a wallet in which an SBT with their personal documents is stored, can simply transfer a flight ticket between each other without any effort or costs, for example. The entire process can run completely automatically.
Know exactly where what comes from
But it’s not just tickets that can make processes significantly more efficient. Whether Airbus, Deutsche Bahn, Tesla or Siemens – all companies want to map logistics chains in a simple, traceable and tamper-proof way: Which screw, which mainboard, which gearbox was manufactured and installed when and where? The blockchain can revolutionize the entire supply chain management.
This also applies to the food segment, where technology can create transparency and credibility – so that consumers really know where the food on their plate comes from.
The world of NFTs therefore offers exciting application possibilities beyond the familiar monkey images. Independently of them, however, art is also an important topic, and not just for certificates of authenticity. Art can be created digitally and with NFTs you can become the owner of digital works. What is art and what “can be done away with” needs to be discussed elsewhere. However, there is a strong scene that creates digital art at the highest level. NFTs are the perfect solution for them: digital art becomes tradable thanks to clear ownership structures.
Courage and vision are required
There is certainly still a lot to do before implementation. There are still challenges that need to be solved. However, many young entrepreneurs have made this their goal.
Start-ups still require large sums of investment for this. If we want to make this progress in Europe, if we want to open up these future markets, then we need courageous and visionary entrepreneurs, courageous and visionary investors and courageous and visionary policies.
