This article will focus particularly on some real-world potential use cases of a blockchain of blockchains like Avalanche. Enjoy.
Table of Contents
- Huge Avalanche Updates and News in Just a Week
- Credit Scoring and Credit Bureaus- What Potential Avalanche Hold?
- Driving Licenses
- Food Security
- Micro Jobs
- Airbnb
- Catch up with More Articles on Avalanche
- Stay in Touch
Huge Avalanche Updates and News in Just a Week
A lot has happened with Avalanche since last week when I posted an article focusing on the three obvious use cases of the Blockchain. You’d be surprised at these updates. I’ll just take a moment to tell you about them:
- July 24th, Avalanche held an AMA in its telegram group. Here is an overview of the event. I am particularly glad that some of my questions were answered.
- On the same day, it announced the integration of Torus one-click login- DirectAuth into its wallet. It will serve as a second layer of protection for users as they can choose to create their Avalanche wallet with their google mail. You can read more about that here.
- AVAXMAP was also introduced to the community on July 24th, to help people see how many test net validators there are and how they are scattered geographically.
- IOSG Ventures on July 27th announced a strategic partnership with Avalanche.
- July 29th, Polyient Games announced that they are bringing an NFT decentralized exchange to Avalanche. Personally, it is exciting news because I already spoke extensively in the previous article about it.
For a blockchain project that is still running a test net, these updates are a pointer to the fact that there is something special about it and people want it early.
This article will focus particularly on some real-world potential use cases of a blockchain of blockchains like Avalanche. Enjoy.
Credit Scoring and Credit Bureaus- What Potential Avalanche hold?
Credit is a very vital pivot to human life and businesses, just as finances are. Credits ensure ceaseless cash flow in businesses, especially in terms of production. Having a good credit score ensures a great lending deal and a great way to secure trust in the sight of banks and lenders. Credit Bureaus are private companies that do calculations based on customers’ spending history to give them credit scores. But because of the nature of their work, there are a lot of accuracy and transparency challenges, to say the least. The World Bank Group in 2016 released an article to identify some of these challenges and it is no surprise that companies make a lot of errors in calculating and documenting the credit histories of their customers. Though they are very important as lenders rely on the data they provide to grant loans to individuals, but, these excesses cannot be overlooked.
An article by Shannon Wu from Bloom.co in August 2017 on 10 problems with credits in the US made some revealing facts about the credit system in the world today. She stated that centralized Credit Bureaus are susceptible to hacks as they deal with private data of people. It was also stated that Credit scores become invalid when one leaves the country of origin. Credit Bureaus can also be a market controlled by an individual company. It was reported that FICO controls 90% of the credits industry in the US so their decisions are quite final when they make them. This year, there was a change in credit score calculations effected by FICO which shook the media as it left many credit scores hurt and others lifted.
Do you ask what Avalanche can do about this?
One of the leaders of the blockchain revealed that the Avalanche subnets can be seen as organizations, this makes it a very suitable tool to solve issues in the lending industry. Since it supports the creation of both public and private blockchains, organizations don’t need to begin to worry themselves on how to create one, the tools are already available. Validators on a particular subnet are the ones that reach consensus to decide how the blockchain will behave. Apart from the Avalanche subnet, P-Chain, C-Chain, and X-Chain which every validator must be a part of, joining a created subnet, will be with the approval of the creator of the subnet.
A credit Bureau can run a subnet on Avalanche with Validators who are employees of the company, to record the credit history of its customers. Personal data can be secured through the blockchain and made available at a cost to lenders who request them. Presenting credit histories across the border can be without hassle with the blockchain technology. Transparency won’t be an issue since whatever is recorded on the blockchain is permanent, unchanged, and timestamped. Sending the credit history of a customer can be as easy as trading an NFT or interacting with a smart contract on the Avalanche X-Chain. People can begin to request, possess, and verify their credit history by paying an amount to the Credit Bureau. This can open up an international market for a credit bureau and raise competition for any monopoly market.
Driving Licenses
Anyone who has traveled out of the country knows that no matter the grade of a driver’s license you possess in a country, it is useless in another country. Why? There is no way for the authorities in another country to confirm or trust the information you possess. There is no interoperability of any sort with another country in this sense.
And Avalanche to the Rescue
What if you can have your driver’s license stored on the blockchain for you by your government? This will open up a new possibility with governments, confirming information on a trustless network can simplify the rigor many people go through on a daily basis.
Take, for example, the government of Country A decides to begin to use an Avalanche subnet to launch a private blockchain network to store drivers’ licenses. Country B can easily make a request to country A via the blockchain by paying a Fee to get this data and in a matter of seconds, Country B officials who are operating another subnet via Avalanche X-Chain and smart contracts (for privacy) can confirm the information provided by an individual. Think about any form of information exchange between parties, Subnets on Avalanche can be instrumental to changes in Government operations that have never been seen before.
Food Security
Two weeks ago, I was researching a release from the Food and Drug Administration (FDA) of the United State, on a Blueprint to solve challenges facing the food industry. It was exciting that they considered the blockchain technology to enable traceability, transparency, and interoperability between key players. I recommended two blockchains in an article but because I didn’t know about Avalanche then, I didn’t include the cutting edge tech.
Avalanche is a very great tool that can help in the traceability of food materials to their origin, all that is needed is to have IoT devices record every step of the path of food from the farmer to the final consumer on the blockchain and it can be traced back to its origin. Because of the sensitivity of data, in this case, a permissioned blockchain will be suitable. Just imagine in a scenario of disease outbreak due to food, this can be cubbed when health officers can trace food to the farm where it is produced and notify everyone who purchased food or materials from there in a nick of time to warn them about the danger.
Micro Jobs
Sometimes ago, I was talking to a brother of mine who was a teacher in a private school before the pandemic, about how cryptocurrency can be an alternate source of income when nothing is coming in. All I could tell him was that he’d have to be patient and consistent with whatever he wants to do and that it can take time. He said to me ‘I need something that could give me money quickly’. These words hit me so hard as I began considering how many youths in my country couldn’t afford to feed their families because of the pandemic. It is so pathetic because there are no relief funds coming from the Government, only good-hearted countrymen and people of the world who do giveaways from time to time. I had flashed back to platforms I knew that operated micro-jobs that can easily put pennies in the pockets of people. Those platforms are either inexistent today or have had my country blacklisted for frauds (multiple accounts majorly). It struck me so hard and it’s still a heartache for me until I do something about it.
Micro-Job Platform on Avalanche Blockchain- Introducing AYCoin
As I thought about Avalanche, I knew it is a perfect platform to launch a public blockchain for micro-jobs (I’d like to name mine AYCoin). Imagine a platform where you can do micro jobs and earn easily by doing simple tasks such as transcription, picture identification, surveys, data entry, etc. and get paid in a currency that you can trade. This platform can use, identity verification like that of Avalanche Hub to ensure that there is no one cutting corners.
Twitter Giveaways can be run via the platforms and provably fair algorithms (Random Number Generators) can be used to transparently declare the winners. The algorithm will be able to initiate smart contract payment to reward the winner instantly. Transferring coins will be instantaneous and easily confirmed by all. This is a viable innovation because twitter allows their APIs to be used on any platform so far they can confirm the authenticity. One will not need to begin to separately onboard users to another platform which can take ages.
Since a platform like this will be a subnet on Avalanche, users can easily trade their coins on the X-Chain. A platform like this can be run by validators from anywhere since it will be a public blockchain. Users can also stake their coins by delegating them to the validator on the subnet just as the Avalanche blockchain was designed.
Above it all, there will be a reputation score system to help further secure the system and kick out fraudsters.
Airbnb
Almost everyone knows about Airbnb covering more than 81,000 cities and 191 countries worldwide according to Investopedia. A blockchain solution can help with payment processing, confirmations, and verifications transparently. Imagine the possibility of onboarding AirBnB on Avalanche as a subnet with a private, public, or hybrid blockchain capabilities, the potential will be endless. The company wouldn’t have to worry about the security of user data as property rents can be traded as ERC 721 or 1155 on a decentralized exchange. Reviews will be decentralized and trustless, as review buying will be reduced to nothing. Users who rent an apartment by trading an NFT can easily attach a review with the meta-data when they leave and the reviews will be transparent and permanent.
Catch up with More Articles on Avalanche
The list of opportunities with a blockchain of blockchains like Avalanche goes on and on. Watch out for more interesting discussions from me next time. You can check previous articles I have written about the platform before:
- A Blockchain of Multiple Blockchains with great Pecs- Why Avalanche Protocol is a Blockchain 4.0 (Part 1)
- Three Obvious Use Cases of Avalanche Protocol Hiding in Plain Sight (Part 2)
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