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My newest client, Factom has just closed an extended $8 Million round of funding, primarily on the back of their newest product, Harmony. This is interesting for a number of reasons. Factom is part of a new class of companies referred to as “Bitcoin 2.0,” a business that explores the potential of the blockchain beyond just transferring and storing monetary value. These are the next evolutions of the technology; if blockchain is the internet, Bitcoin 2.0 are the companies vying to be Google.

I’ve written a number of articles here about the use of blockchain as a financial tool, primarily in the form of bitcoin. But I’ve also touched a bit on the other uses it has. What makes blockchain interesting is the fact that it doesn’t require trust. If you think about the finance industry and some of the players in it, you’ll see how important this can be. The world is still reeling from the fallout of 2008, when a number of “too big to fail” banks nearly destroyed the world economy with their dangerous lending practices and cryptic financial instruments. But these are the most trusted institutions in the world…to the point that when they bankrupted themselves, the taxpayers were forced to bail them out using money these same institutions created out of thin air. It’s truly stranger than fiction.

But I digress… the key is that bitcoin doesn’t require this astounding level of faith. It’s a transparent system. At any point, I can go through the blockchain and verify every transaction that has ever happened since its inception. And indeed, this is happening constantly. Every computer in the network acts as a check against fraud committed by the others. Managing money is an obvious and lucrative use case. But in proving over these last 7 years that billions of dollars worth of value can safely be guarded by this massive, decentralized machine the door is held open for even greater potential.

I’ve mentioned voting before. As another system where trust and privacy are paramount, voting is an obvious next case for bitcoin. Indeed, things have progressed significantly on that front. Nasdaq, the tech-focused wing of the US stock market, has recently completed their test of blockchain voting. Voting for governments hasn’t made an appearance yet, but with some public pressure, I can see it happening.

Speaking of governments, there are a number of functions there which can easily be supplanted by blockchain technologies. One great example is the enforcement of contracts. The Ethereum network is a blockchain similar to bitcoin that is also completely programmable. This means that not only can you transfer and store value, but you can trigger automatic transactions based on any logic you please. So, for example, two users can place a bet on a basketball game using ethereum that will automatically complete once the final score is announced. No need for a bookie, no need to get the mafia involved to break a leg if one party reneges.

All kidding aside, this same concept can be applied to all types of contracts. There’s one project built on ethereum that allows a user to create an automatic lock. Send money to it and it will open on its own, perfect for applications like renting out a bike or a room or something of that nature. But the applications go even deeper than that. Factom, the company I mentioned earlier, has landed a deal in China that could enable the administration of entire cities to take place on the blockchain. This may not seem like much when you live in the west, but in much of the world, simple things like proving that you own a piece of land can be nearly impossible. During a recent trip to Ghana, I spoke with a minister there about an incredibly convoluted process involving multiple bribes which, in the end, could still be overridden by a local chief. Transparent processes mean anyone, regardless of class and connections, has the same access to government services.

And finally, there’s the possibility of personal data being handled by a blockchain. Identity verification is something that’s been a big deal lately, especially with the advent of an authoritarian US president who willing to bar even green card holders  and people who’ve worked with the armed services from entering the country based on the argument that “we just don’t know.” But, what if we had an internationally recognized and neutral method of knowing. Well, a number of blockchain initiatives and aiming to accomplish exactly that. The potential ranges from notary type services and secure storage of things like passports and passwords to full on replacement for government registration. Each of these functions is managed by an independent network of computers that can never read your data unless you unlock it; something no government in the world can boast. Taking this further, there are a handful of initiatives working to store medical records and other sensitive data in this manner. The possibilities really are endless.

The full potential for blockchain technology has yet to be revealed. In startups and meetups and open source projects across the world, pioneers are working to unlock that potential… trying to find uses for this new tool. By reading this blog, you’re taking part too in a way. Tapping into knowledge that the rest of the world doesn’t even know is being forged. I urge you to see how you can apply it to what you’re doing now. Ask yourself if there’s potential to solve a problem you’ve been working on. See what you come up with.

Because if you don’t, one of us will. Better to build it than buy it, no?