Utility Blockchain Definition
At the London Blockchain Conference we’re excited to invite spokespeople and representatives from utility blockchains and businesses building blockchain applications that work.
What are utility blockchains, and who’s invited?
Utility blockchains are defined as being scalable and, therefore, useful. It’s impossible to be considered a utility blockchain if the network can only handle a few thousand transactions per second before hitting a bottleneck or falling over and if fees dramatically increase as network demand picks up, the blockchain cannot be fit for Enterprise or Government use.
Some potential use cases for utility blockchains include:
- Data Management - Scalable blockchains create time-stamped records of all transactions. Hashing data and storing it on an immutable ledger is one of the many revolutionary use cases for utility blockchains.
- Traceable Transactions - Unlike the thousands of blockchains that want to scale through second layers and intermediary systems, utility blockchains scale on chain. The time-stamped transactions then allow whoever made them to prove it, making it possible to prove who did what and when, having beneficial implications for regulatory compliance, legal proceedings, and more.
- Micropayments - Scalable utility blockchains facilitate micropayments, making it possible to make the small, casual transactions Satoshi Nakamoto talked about when he released Bitcoin. Micropayments are only possible with nano-fees that get cheaper as network demand picks up.
- Tokenisation - While Bored Ape NFTs grab the headlines, utility blockchains make it possible to tokenize anything. These tokens can be fungible or non-fungible, depending on the requirements. Tokenizing goods can revolutionize supply chains, inventory management, administration, and more. That’s just the start of it!
- Legal Compliance - To be truly useful on a global scale, how a blockchain operates must comply with relevant laws and regulations. Digital asset recovery in compliance with legal court orders is one example of how legal, useful blockchains operate.