Transparency, Accountability, and Freedom of Blockchain Networks.
Reason 3. Transparency
The Bitcoin blockchain keeps a record of all the transactions on the network that have occurred since the inception of the network in 2009.
This means that for every address on the bitcoin network it is possible to see all the transactions for the address that have ever happened on the network.
This property of a blockchain can be useful in many other instances. In addition to the car industry and medical industry, transparency can play a huge role in file storage and sharing, transportation of cargo between destinations, trading of all kinds of assets and verification of different stages of manufacturing and other processes.
There already are startups that are working on bringing the blockchain technology to all types of industries, including the fashion industry. One of the biggest issues in the fashion industry is counterfeit goods and blockchain technology is a solution to this problem. For example, a brand may choose to include a chip with a special code for every garment it creates. Users can then use a blockchain network to verify that the garment they bought is authentic.
The transparency can also lead to simplification of many processes. For example, the car industry could use a blockchain network to store ownership information and seal it with confirmations on the blockchain. If you wanted to transfer the ownership of your car, you would simply send the information about the car to the new owner in the way you would send a cryptocurrency payment today. Then, the official owner can claim the car. In this process, there is no need to go to DMV, spend time waiting in line or fill out large amounts of paperwork. All you’d have to do is exchange the keys and then send the information about the digital asset, which is this case is ownership information for the car. And if a car is similar to a Zipcar in that a person can open it with a magnetic card and/or a smartphone, then even sending keys would not be necessary. Everything could be done via a secure blockchain network.
Reason 4. Accountability
Secure authentication of transactions on blockchain networks and their transparency are the reason why blockchain networks are great for storing information that requires accountability.
For example, on the Bitcoin blockchain, it is possible to see a full history of transactions for every address on the network. This means that if the medical industry were to use a blockchain solution, it could be possible to see an entire history of all actions by a doctor. In the car industry, it could be possible to see an entire history of all the work that a mechanic has performed.
Because blockchain networks are extremely secure, accessibility of such information would lead to increased accountability. For instance, today a mechanic that does a poor job at one shop can find a job at another shop and if the owner of the new shop doesn’t check the references or doesn’t do enough research, he or she wouldn’t know that in the past the mechanic didn’t perform. If people knew that all their work history would be visible, they would be much more responsible and accountable for the work they do, which is why blockchain is a great solution for industries and organizations that are looking for increased transparency, accountability, and openness, be it to the general public or private stakeholders.
Reason 5. Freedom and user choices
The final reason as to why organizations and individuals should use blockchain networks is unprecedented freedom. The freedom comes in many different forms. For example, one of the freedoms is freedom to not to have to rely on a central authority, fill out tons of paperwork, wait in lines, deal with incompetent customer service and so on. Another freedom is mental freedom of knowing that rules are the same for all the participants and no single point of authority can change the rules, no matter what the intentions or the reasons behind the change.
When it comes to financial blockchain networks, freedom also means that no one can tell users how to spend funds, how to store funds, and what they can or can’t do.