• Tue. Mar 21st, 2023

Blockchain Technologies: Higher-Profile Use Situations in the News and Other Option Use Situations | Polsinelli


Mar 16, 2023

Cryptocurrencies and non-fungible token (NFT) news headlines at the moment concentrate on the marketplace crash (from time to time framed as a crypto-winter or cryptoextinction), fraud and the collapse of numerous crypto exchange platforms — or the “wealth” getting designed or lost by way of cryptocurrencies and NFTs. Earlier, in 2021 and the 1st half of 2022, headlines have been focused on the meteoric rise in worth of cryptocurrencies, digital art marketed as NFTs, and platforms and exchanges that facilitated these transactions making use of blockchain technologies. Seeking ahead to 2023 and beyond, additional legislation and regulation, along with the enforcement of current laws and regulations, is inevitable in connection with these economic, investment and otherwise speculative use circumstances relating to cryptocurrencies, NFTs and blockchain technologies.

Even so, the underlying blockchain technologies could be (and is getting) employed for much less headline-grabbing and much more mundane, pragmatic and much less speculative purposes, and these use circumstances ought to not be confused with the use circumstances ordinarily observed in headlines.

What the future holds for cryptocurrencies, NFTs and other related utilizes of blockchain technologies is hotly debated, and several individuals have robust feelings about these developments — specially about the worth of new currencies, NFTs and the like. Even so, regardless of one’s feelings and beliefs in this regard, we believe everybody ought to be conscious that the legal and organization dangers differ tremendously based on the use case of the blockchain technologies. At its core, blockchain technologies is about securely recording and tracking transactions by means of a ledger that can then be employed for several nonspeculative purposes unrelated to cryptocurrencies or digital asset speculation, a number of of which are discussed under.

Option blockchain utilizes

  • Individual details verification. The capability to each safe and selfauthenticate details tends to make blockchain technologies a promising tool to assistance authenticate and validate who ought to have access to individual details, such as in connection with economic, wellness care, travel and other information.
  • Welfare and government distributions. With access to self-authenticating, safe individual details making use of blockchain technologies, government distributions could be created much more trusted and effective. Eligible recipients can be verified and receive access much more readily, although ineligible applicants can be much more readily identified.
  • Overall health details. Healthcare records could be accessed, with sensitive details kept much more safe, by way of blockchain technologies employed to authenticate an individual’s identity. Insurance coverage coverage could be much more readily verified, administrative expenses and lags could be decreased, and therapy could then be supplied much more rapidly and expense correctly.
  • Media royalties. Blockchain technologies can be employed to assistance authenticate who has rights relating to music and video downloads. In addition to mitigating piracy and unauthorized copying, views and playbacks could be much more accurately logged. In addition, “smart contracts,” ordinarily linked with crypto and NFT transactions, could facilitate automatic royalty payments.
  • Provide chain and logistics. By tracking shipments on a distributed ledger, a number of parties along a provide chain can access genuine-time and historical details about each and every shipment. Simply because blockchain technologies could track the chain of ownership and transactions, the presence of counterfeit goods could be much more readily identified and mitigated.
  • Loans and insurance coverage administration. The use of blockchain authentication and linked wise contracts in lending and insurance coverage could boost efficiency in connection with numerous administrative and processing activities, such as insurance coverage documentation and coverage, liens, and collateral.
  • Legal principles to think about

    Blockchain is an fascinating, promising and fairly safe technologies, but like most technologies, its use circumstances and how humans use (or abuse) it want to be regarded as when getting into into transactions, contracts or relationships involving the blockchain. Absolutely nothing is completely protected or safe, nor is it cost-free from the human element at some level — such as error, omission or abuse. For instance, individuals may perhaps shed passwords or other credentials or new technologies may perhaps arise, which could raise the prospective for hacking and the circumvention of encryption mechanisms underlying the blockchain.

    Time-tested and simple organization, legal and contracting principles ought to be kept in thoughts when thinking about the use of blockchain technologies, such as (1) counterparty and other due diligence and evaluation, (two) legal and regulatory compliance evaluation, and (three) robust and thoughtful contractual provisions and protections primarily based on the nature of the use case and application, such as the allocation of dangers (no matter whether recognized or unknown).

    If you are a vendor giving items or solutions incorporating blockchain technologies, affordable and acceptable disclaimers about the technologies and ancillary human components ought to exist in your contracts. Conversely, if you are a client or customer acquiring items or solutions making use of blockchain technologies, be realistic and cautious about the prospective added benefits and guarantee there are acceptable controls, safeguards, treatments and recourse that could be realistically enforced.


    Just due to the fact cryptocurrencies and NFTs, which use blockchain technologies, have been in the news grabbing alarming headlines about prospective fraud and enormous economic gains or losses, there are nevertheless other use circumstances and applications of blockchain technologies that, although possibly much less glamorous or newsworthy, may perhaps potentially be much more profound and useful in each day life in the future.