From Maersk to Codex: Four Non-Crypto Blockchain Opportunities
According to Custom Market Insights, the blockchain market is currently valued at $5 billion and is expected to reach $69 billion by 2030. Not all of this growth will come from areas typically associated with blockchain, such as digital finance. Instead, a set of non-crypto companies have started using the technology to secure valuable data and assets.
Strong blockchain technology applications share an important similarity, according to Oxford’s Saïd Business School’s Blockchain Strategy program. The data they secure and calculate has real economic value. In other words, the network’s participants save or earn money, which means they are willing to pay a smaller transaction fee to operate the platform.
To get ideas for blockchain use cases in your sector, here’s a quick selection of four companies that are pioneering value-driven applications: Maersk, Figure, Scribbles and Codex.
Maersk: Optimization of supply chains
Maersk controls over 20% of delivered goods worldwide, and is one of the largest container shipping companies in the world. But after a series of logistical problems – poor communication, limited visibility and inefficient, paper-based systems – Maersk realized it could use blockchain to reduce its administrative costs.
In 2018, IBM (IBM) – Get a free report and Maersk launched a proprietary blockchain platform, TradeLens, to record supply chain transactions. Now, Maersk’s supply chain managers use TradeLens’ distributed ledger to work with shipping companies, importers, suppliers and agencies worldwide, automating submissions, speeding up document approval and sharing shipment data.
Figure: Completion of mortgage
Another industry with a history of complex transactions? Property. Just as products move through supply chains, mortgages change hands faster than you might think. In fact, 70% of all mortgages will change hands – a few days after a bank completes the transaction, a few times during a mortgage’s decade-long life cycle. These frequent transfers can trigger errors, and unfortunately, borrowers are usually the losers.
To solve this problem, mortgage originator Figure launched blockchain-based mortgages that work much like NFTs, unique digital identifiers that prove ownership and authenticity. Figure’s system records where a mortgage originates and allows individuals to track a mortgage’s history with owners and transfers. As a result, the system makes transfers faster, saving time and value for both borrowers and lenders.
Scribblers: Provide digital identification
According to the New York Times, over 50,000 doctorates are purchased annually from diploma mills. To combat fraud and ensure that digital learning experiences are as recognized and accredited as their in-person counterparts, universities and e-learning providers have begun experimenting with blockchain-based certificates.
Scribbles, for example, provides transcripts secured by blockchain to ensure the authenticity of K-12 records. Likewise, Credly offers digital badges that students can share with employers or their networks. In both cases, network participants gain a concrete advantage: Students have a reliable certificate – and employers confirm that the salary they pay employees is well spent.
Codex: Verification of art collectibles
Finally, blockchain offers the art world a new way to protect art experts from buying forged objects. In the past, prolific forgers have evaded detection by forging an artwork’s provenance papers, which trace a painting’s origin, lineage and authenticity. One of the most prominent forgers of the 20th century, the British artist John Myatt, used fake papers to confuse two of London’s finest art houses.
Codex records art and collectibles on a blockchain to eliminate paper-based loopholes. If art dealers want to ensure that a piece is authentic and reliable, they search the Codex Registry, which captures extensive data on all registered works of art. The process is relatively simple. After entering an artwork’s title, creator or registry number, a collector can view documentation, browse digital images and confirm its identity. As a result, art houses regain confidence in the object’s provenance, and collectors ensure that they are buying the right work of art.
In each of these four use cases, the blockchain application provides its participants with real financial value. Maersk reduced the shipping industry’s administrative costs. Figure reduced losses in real estate. And Codex increased the art market’s integrity, security and trust, thereby mitigating costly mistakes.
Therefore, as you envision your own blockchain use case, ask yourself: If you create a blockchain application, will participants pay to access the benefits?
To learn more about how to identify an appropriate blockchain use case, check out Oxford’s Blockchain Strategy program – a six-week masterclass designed for managers, entrepreneurs and innovative professionals.
