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Blockchain technology applications in the end customer segment

Written by J. Appel

Grade 1.3

Paper category

Term Paper

Subject

Business Administration>General

Year

2018

Abstract

Term Paper: Different applications of blockchain technology to end consumers In the next section, I will introduce the different applications of blockchain technology and its advantages to end consumers. 2.1 E-government, especially in official affairs, blockchain can simplify and accelerate many processes. Since the identity is almost anti-counterfeiting, residents can handle almost any type of administrative procedure online. Since all data can be obtained digitally in an automated processing system, the risk of human error or manipulation is reduced to zero. (Fraunhofer 2018) The government can create a private blockchain for almost any topic. These can be identified by the identity of individual citizens to simplify the above-mentioned administrative procedures, or they can be made anonymous for use in elections. In this procedure, only voting citizens can access his or her anonymous identity. This allows each citizen to know accurately whether his or her vote is counted correctly. Due to the characteristics of the blockchain, voting becomes counterfeit and anti-manipulation. (Fraunhofer 2018) Another application area in the field of e-government is any tax treatment. The first is to transmit the tax assessment figures to the authorities, where the identity of the sender is guaranteed. Using digitally available data, authorities can automate processing, thereby minimizing errors or manipulation. However, these applications can also go further. In a world dominated by cryptocurrencies, the tax of each transaction is independently related to personal identity, so that you can create tax reports yourself. Taxes can also be tracked and errors or errors at any time. Manipulation is almost impossible. (Fraunhofer 2018) 2.2 Diplomas and certificates In an increasingly digital world, diplomas or certificates are usually still issued by official institutions in paper form and sent as originals. This is to ensure the authenticity of the available documents for later use. But these documents are not anti-counterfeit-by using the correct printing press and sufficient data, it is now possible to manipulate and forge official documents. Through the use of blockchain technology, the hash value of the issuing agency can be provided for digital files. This will make the documents anti-counterfeit and traceable. Combined with an e-learning system, this can also provide recognized courses and degrees worldwide. For the proof of house ownership, notaries and third parties are outdated. Two parties involved in a transaction can exchange all certificates and be verified by the blockchain. This will reduce manipulation and abuse, and make real-time goods transactions on a global scale legally binding and secure. 2.3 The increasing number of connected devices in the Internet of Things ('IoT') (from 15.41 billion devices in 2015 to 75.44 billion devices in 2025 (Statista 2018)) makes the security of transmitted data more and more important. Anonymous and encrypted blockchain enables all connected devices to communicate with each other securely even if they are outside the closed system. Data encryption is stored in each block of the blockchain and provides a separate hash value. The agreement will also make data compatible between all connected devices, making unimaginable applications possible. The interconnection of IoT devices will also make it possible to track personal devices. Customers can track goods purchased online through the connected package and verify the integrity of the ordered goods. 2.4 Digital asset management So far, digital commodities can be used almost indefinitely, and ownership is difficult to prove. Piracy allows the copying and sharing of digital goods, and it is impossible to track who copied or legally owns these goods at the beginning. This also makes the trade of digital goods more difficult. The gaming industry is an example. Therefore, the expanded transaction of the digital other self that is popular in the gaming community (the market is currently estimated to be about 15 billion U.S. dollars), so it is carried out without ensuring the safety of the relevant parties. Through the use of blockchain-based digital asset management, a unique hash value can be provided for the digital goods to be traded to identify personal property. This example can be applied to all business models that deal with digital goods. Another example can be found in the music industry to illustrate this point. By using blockchain technology, the music industry can effectively combat pirated music. Similar to the implementation of the expansion, a single song is assigned a unique hash value. This not only shows the ownership of the song, but also allows all parties involved in the production to track its usage, so as to get their respective shares. The described procedure can also be applied to the film industry. Another advantage of using blockchain in digital asset management is that the generated content can be verified. This means that, for example, articles read by end consumers on the Internet can confirm the authenticity of the designated author. This makes so-called "trusted content" possible. With the increasing spread of false reports and hate comments on the Internet, such content has the potential to increase society’s confidence in published content. Authors and disseminators of false reports and hate comments can also be traced and held accountable in this way. (The Economist 2018) 2.5 Loyalty program So far, the main criticism of the company's loyalty program by end consumers is the lack of transparency and "unfair rules of the game. Read Less