A blockchain is a distributed database that maintains a continuously-growing list of data records secured from tampering and revision. It consists of data structure blocks, which hold data and programs, with each block holding batches of individual transactions and the results of any blockchain executables. Each block contains a timestamp and a link to a previous block.

Blockchain is a fairly new technology and as with any new technology, it’s full potential has not been realised as of yet. Many different applications have begun popping up though and in a few more years we should start seeing this tech go mainstream as a result of mass adoption in various fields.

Below are the key fields that blockchain technology will have a major impact on, leading to greater innovation and simplification and automation of a lot of tasks that are manually handled today.

1.Tracking Tax Payer Money

The government can hugely benefit from the implementation of blockchain for the tracking and storing of data regarding tax payer’s money. Governments provide all sorts of loans, grants, subsidies and incentives to its citizens. To be able to track the money from source (usually the treasury) to the recipient’s account will definitely help in ensuring that the tax payer’s money is being used properly and efficiently. Also, all this could be public knowledge making for a more transparent government!

2.Smart Contracts

Blockchains can be used to create legally binding digital contracts since it can not only store transactions but logic too. This would be outside the traditional legal system and could shake things up a little for a few lawyers! Smart Contracts will also enable automatic execution of trade agreements and micropayments.

One very innovative use case scenario by a company called SmartContract.com includes connecting a contract to GPS data that automatically releases payment to both the shipper and supplier when a package arrives.

3.Digital Assets

Another area where blockchain would be perfect, would be in creating and storing information regarding digital assets such as stocks, bonds, tickets, coupons, frequent flyer miles, digital keys, etc.

Some companies are already beginning to do this with one prominent player being Colorred Coins. A company can issue shares via Colored Coins instead of the New York Stock Exchange (NYSE) or the NASDAQ. As blockchain technology eliminates the middleman, a lot of people will be able to take advantage of the financial tools that were not available to them earlier. It will make the whole system faster and smoother.

4.Music Payments and Licensing

As online music streaming becomes more and more mainstream thanks in part to Apple Music, Spotify and Pandora, the blockchain can play a vital role in helping artists get their rewards in ‘real time’. Artist Royalties could be distributed in real time every time their song is played around the globe.

Similarly music licensing can be done and managed on the blockchain, cutting off the middlemen like lawyers and bookkeepers that manage the published content leading to a reduction in cost of producing and managing music which could in turn mean more profits for artists or a lower price for consumers.

5.Cloud Storage

This is yet another area which could benefit from the blockchain tech. Many companies like dropbox already provide cloud storage to its users but the implementation of the blockchain in this area will allow everyone in the world to rent out their unused computer storage to anyone else in the world. Imagine making money by renting out your hard disk space! Startups like Storj, Maidsafe and Datacoin are already working on the concept.

6.Identity Management

As data in blockchain is tamper proof, governments around the world could create blockchain based identities for its citizens. A company named Onename, already allows for such functionalities where it is possible to create tamper-proof digital indentities by users themselves. These could be used to even replace usernames and passwords online and simplify a whole lot of things in doing so!

7.Notary Services

Since, in a blockchain, small amount of data can be attached to any transaction record, it could be used as a cheaper alternative to the current notary services. This can be done for as little as $2. There is an app called Uproov that already lets you do that. It specifically allows you to notarize your smartphone multimedia immediately after creation.