London researchers explore blockchain applications beyond financial services

Rage Review : A research institute at Imperial College London is studying how to apply distributed ledgers or digital currencies to areas other than financial services, with a particular focus on the disruptive impact of distributed technology in the energy, insurance and medical industries. During the research, it is hoped to establish a methodology to assess the impact of blockchain in various industries (from music production to car rental). Although it is too early to predict the impact of blockchain technology on various industries, academic activities and industry participants may be the first to perceive the potential impact of blockchain technology.

Translation: Nicole

Blockchain applications are gaining momentum in the financial services industry.

Large banks and financial institutions around the world have invested in blockchain startups or worked together to test blockchain technology. However, the excessive attention paid to blockchain technology in the financial industry may obscure its potential in other industries.

Although the changes brought about by blockchain technology are slow, the technology is accelerating its application to other economic sectors not related to financial services - and researchers also want to explore other areas outside the financial industry.

The Center for Digital Currency Research and Engineering is a research institute founded last fall at Imperial College London and was funded last February by the Engineering and Physical Sciences Research Council, a government agency that funds research.

Called CREDIT, or Digital Currency Effect for Digital Transformation, the grant will be used to explore areas beyond the financial services industry where distributed ledger technology is used.

Dr Catherine Mulligan, the project’s lead researcher, believes in the disruptive potential of distributed ledger technology and has previously conducted research in the areas of digital technology, device connectivity and urban living.

Catherine Mulligan

Speaking about the project, Mulligan outlined the goals of the research, telling CoinDesk:

“We are looking at how to apply distributed ledgers or digital currencies to areas beyond financial services. So we are particularly interested in the disruptive impact of distributed technologies in the energy, insurance and healthcare industries.”

The study, which is expected to run until July 2017, will consider issues from the perspectives of both startups and current market players, during which time it hopes to establish a methodology for assessing the impact of blockchain in a variety of industries, from music production to car rentals.

In addition, the project's researchers hope to provide policy recommendations to legislators and government agencies.

Public vs. Private

The financial industry has clearly expressed its preference for building its applications on privacy-focused distributed ledger technologies rather than public blockchain technologies such as Bitcoin. This can effectively reduce regulators’ concerns and better regulate data, information and participants’ access rights.

However, for other industries, some do not attach much importance to protecting privacy.

Public blockchain technology comes into play when there is a lack of trust between participants, especially those use cases involving end consumers.

Private blockchains are only trustworthy when members have the authority to update verified information, while public blockchains are more suitable when there is no external source to guarantee trust.

Dr Mulligan believes there is still a place for public permissionless blockchains, particularly for industries outside of finance.

The idea is not new, but it has again attracted interest from academia and industry. Chronicled, a startup that has raised $3.4 million, is looking into the use of blockchain technology for collectible sneakers. Chronicled has not yet decided what blockchain technology to use, but is experimenting on the Bitcoin Ethereum blockchain.

IoT and blockchain

Companies like IBM are already at the forefront of innovation, combining two new trends: the Internet of Things (IoT) and blockchain. IBM has released a new proof of concept for the fusion of IoT and blockchain. Dr. Mulligan believes this combination has unlimited potential.

She said:

“I think these technologies will influence each other, and I absolutely believe in the unlimited potential of combining the Internet of Things with distributed ledgers.”

Mulligan points out that this system could form an early warning system to prevent tampering with IoT devices, which could have great harm to the real world.

Mulligan told CoinDesk:

“Blockchain technology can protect critical infrastructure in urban environments. If you put IoT devices into urban infrastructure, the architecture is vulnerable to hackers. Blockchain can detect any changes in the system and issue warnings in advance.”

Although it is too early to predict the impact of blockchain technology on various industries, academic activities and industry participants may be the first to perceive the potential impact of blockchain technology.