where can one use blockchain technology outside the financial sector?

Co-founder of Ethereum (ETH), Vitalik Buterinhas been outspoken about non-financial uses of blockchain technology recently and released a paper on June 12 listing some use cases.

Vitalik Buterin. Source: Bankless / YouTube

In a document entitled “Where to use a blockchain in non-financial applications“, Ethereum’s architect said that one of the biggest challenges in a crypto account system is the issue of private key changes.

He said a blockchain usage case could be in “user account key changes and recovery.”

In the document “Decentralized society(DeSoc) co-author of Buterin, which explores the idea of ​​non-transferable tokens Soulbound Tokens (SBT), he suggests the use of profiles “that can solve this problem” to preserve inaccessibility, social recovery (or “community recovery”).

Another use case for blockchain may be in “modifying and revoking certificates.” Buterin argues that issuing digital registration off-chain or on-chain using non-fungible tokens (NFTs) would make it difficult to change and revoke when the need arises.

“So instead, we can choose a hybrid solution: perform the initial certification with a signed message outside the chain, and make the recalls on the chain,” he said.

He noted that this is the approach used by OpenCertsa blockchain platform that generates crypto protection for diplomas.

Another example of the value of blockchains in the non-financial sector is “commitment to scarcity”. Simply put, blockchains can be used to identify whether an attestation has a documented limited amount or not, which can then affect the effectiveness of that attestation – ie. the more limited it is, the more it has value.

Blockchains are also powerful because they create “common knowledge”, which means they can give participants access to data on the chain and who else can access it. This facilitates coordination between many parties.

Another potential use case Buterin discussed is open source metrics, a concept still in its infancy that will measure diversity and decentralization.

“An ideal voting mechanism would somehow keep diversity in mind and give more weight to projects that are not just supported by most tokens or even people, but by most people. Really different perspectives,” Buterin said.

Buterin also noted that a “controversial” use case for blockchains is data storage. He said that since there are other data storage tools that can better respect users’ privacy, blockchains are not really necessary. In some cases, however, blockchains can be useful for storing data:

“Blockchains as data centers for short text registrations can be marginal or significant, but I expect that at least some of this type of use will continue to occur. Blockchains are incredibly convenient for cheap and reliable data recovery, where the data can continue to be recovered if the application has two users or two million. “

This article emerged after Buterin earlier this year explored the idea of ​​”soul-bound tokens,” which are tokens that cannot be sold or separated from their owners. In mid-May, he co-authored the aforementioned research paper explaining how these non-transferable tokens can create a richer and pluralistic ecosystem in Ethereum, called the “Decentralized Society” (DeSoc).

Buterin argued that tokens can be used to code social trust relationships. However, this has not been without controversy.

“Identity and reputation are complex and subjective variables that can never be sufficiently characterized by numbers on a blockchain,” he said. declared Polynya, a pseudonym Ethereum researcher, in early June.

Buterin also discussed SBTs on the latest podcast Bankless :

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