I know that there is a lot of FUD (Fear, Uncertainty, and Doubt) about the future of cryptocurrencies, but the reality is that the future will be recorded on blockchains.

Here are 3 ways that transactions will be tracked ‘on chain’:

1. Smart contracts.

When you make large purchases like a house, that includes a loan, the paperwork needs to be handled by lawyers or a notary, because the handing over of debt has to handled correctly or the transaction could leave both the seller and new owner holding the same debt at the same time, or the debt not being owned by either. Smart contracts recorded on the blockchain eliminate this by having the necessary transactions happen simultaneously only after all parties agree.

2. Decentralized finance.

If you have collateral for a loan, you won’t need a bank to borrow. These loans will provide opportunities for people who tend to only be able to access high interest loans to find more appropriate financing. And, the door will be open for loans slightly larger than micro loans, in many countries where this is currently challenging. When finance becomes decentralized regulations become a challenge, and the limits of borders and centralized control break down. There will be a Robin Hood effect where people with small amounts of equity can be both lenders and borrowers, taking the the decision-making and profit-making out of the exclusive hands of the rich.

3. Artists profit.

NFT’s – Non Fungible Tokens are baffling to many people and there are a lot of uses cases that seem silly. But usually when an artist sells a piece of work, they don’t get any value in the resale. NFT’s allow an artist to get a percentage of resale value. This is a game changer for creative people and NFT’s will be a way to track both digital and physical works of art in the future.

There are many other reasons to record transactions on a blockchain, but I think these three uses will be paramount.