Redefining the ‘transaction’ with Blockchain

Blockchain

Are blockchain and finance synonymous?

For most people, the answer to this question would be ‘yes’. Unfortunately, the notion of blockchain being applicable largely — or only — in finance is neither complete nor true.

In my first introduction to blockchain, I was taught that a blockchain is simply a record, a ledger of transactions. The key to understanding use cases of blockchain beyond finance involves expanding our definition of what a ‘transaction’ is.

Most people consider a transaction a mere exchange of money, of funds, in exchange for goods or services. But why do we consider the scope of the word so narrow?

In reality, a transaction is ‘an exchange or interaction between people’. It isn’t restricted to monetary transfer alone. I could consider you reading this article as a transaction of information from me to you. Or, every time you park your car with a valet service, you are essentially transacting your car to them temporarily.

If we consider this revised definition of what a transaction really is, it quickly becomes clear that

cryptocurrencies are really only the tip of the proverbial iceberg. What lies beneath the surface is the more exciting use cases of this technology.

Take the example of Bridge Protocol, a NEO based solution that uses the blockchain to simplify KYC. The very concept of using blockchain for something other than finance is unheard of for most people, yet we have developers venturing into new fields with the help of blockchain.

Personally, I see the future of blockchain as being much brighter than that of cryptocurrencies. While many governments are reluctant to include digital, decentralised money in their finance policies, nearly each and every one of them are positive as far as induction of blockchain goes. When I explain this to people, I often draw a parallel between the fate of cryptocurrencies and the fate of the one-time phone giant Blackberry — even though Blackberry had a massive market share back in the day, their lack of app support led to their eventual collapse. Similarly, in the absence of a smart contract platform, Bitcoin may become just another tech dinosaur, feared in its day but incompetent in the struggle for survival.

DISCLAIMER:
THE VIEWS AND OPINIONS EXPRESSED IN THIS ARTICLE ARE THOSE OF THE AUTHOR AND DO NOT REFLECT THE VIEWS OF SPEAKIN, ITS MANAGEMENT OR AFFILIATES. SPEAKIN MAKES NO REPRESENTATION AS TO ACCURACY, COMPLETENESS, CORRECTNESS, SUITABILITY OR VALIDITY OF ANY INFORMATION ON THIS ARTICLE AND WILL NOT BE LIABLE FOR ANY ERRORS, OMISSIONS OR DELAYS IN THIS INFORMATION OR DAMAGES ARISING FROM ITS DISPLAY OR USE.
Aman Ladia

Author: Aman Ladia

Aman Ladia is an inventor and entrepreneur with a keen interest in blockchain and cybersecurity. Having worked as a product developer with internationally recognized projects under his belt, Aman now serves as the Founder & CEO of his own blockchain start-up, Liquid Protocol. Aman is also a part of the board of advisors for The Partnerships Consulting, Dubai where he works alongside industry leaders to architect technical solutions for various corporates. He also has a bent for research, and has collaborated with banks in the Middle East for Blockchain & AI development. Additionally, Aman is a seasoned public speaker with wide experience in a multitude of government and private conferences. He frequently shares his vision not only through his speeches, but also through articles he publishes on online publications like Bitcoinist. Are blockchain and finance synonymous?
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