Characteristics of the Blockchain
The blockchain is a purely distributed peer-to-peer data store with the
following properties:
• Immutable
• Append-only
• Ordered
• Time-stamped
• Open and transparent
• Secure (identification, authentication, and authorization)
• Eventually consistent
These properties of the blockchain are independent of the specific data stored
in it. Hence, from a simplified point of view, we can consider the blockchain
a special kind of box for storing digital items. This will open a huge variety of
applications for the blockchain.
Generic Application Patterns
Based on the properties of the blockchain and its characteristic as being a
generic data store for all kinds of data, we can come up with the following
generic use cases:
• Proof of existence
• Proof of nonexistence
• Proof of time
• Proof of order
• Proof of identity
• Proof of authorship
• Proof of ownership
Proof of Existence
This use of the blockchain focuses on storing data for the sole purpose of
proving its existence. Hence, this use utilizes neither the ordering nor the
time-stamping capabilities of the blockchain. Concrete applications are, for
example, registries of items that are supposed to be unique such as brand
names, patents, license codes, and Internet or e-mail addresses.
Proof of Nonexistence
This use of the blockchain focuses on the opposite of the proof of existence.
It provides ways to verify whether specific entries or items do not exist in
the blockchain. Concrete applications of this could be records of complaints,
fines, or convictions.
Proof of Time
In this case not only the sheer existence of an entry in the blockchain is
important but also the time when the entry was added. The blockchain can
serve that need since the blocks of the blockchain-data-structure store the
time when the process of adding them was started. Applications that benefit
from the time-stamping capabilities of the blockchain are those that track
the occurrence of events in time such as delivery or notification tracking,
tracking of payments, tracking of orderly opening and closing of public bidding
procedures, and management of predictions.
Proof of Order
This pattern of usage utilizes the ordering capability of the blockchain.
Applications that benefits from that property of the blockchain are those
that track the relative ordering of events regardless of their absolute time, for
example, tracking of application processes, auditing public bidding procedures,
and escrow services. Proving that some event was the first or the last of
its kind is a specific example of proof of order. This kind of proof can be
important when resources are allocated in the same order in which certain
claims or documents are submitted such as college or university applications,
patent applications, or copyright claims.
Proof of Identity
Proof of identity can be considered a specific case of proof of existence
because it proves that a certain identity already exists. The blockchain serves
that use case since it not only stores data that can be used to identify someone
or something but also provides basic security concepts for identification and
authentication. Concrete applications of this use pattern are digital identity
documents for people, animals, or goods. Governments could utilize such
blockchains as part of their e-government strategy for managing personal
documents, drivers’ licenses, or passports.
Proof of Authorship
This use pattern focuses on proving that a specific person or institution added
certain data to the blockchain. The blockchain can serve that purpose because
it not only stores data that can be identified by its cryptographic fingerprint
but also offers basic security concepts such as identification, authentication,
and authorization. Identification and authentication are necessary to identify
authors and verify their identity. Authorization is necessary in this use case in
order to prevent someone from adding data to the blockchain without having
the right to do so. Applications that utilize this use pattern are, for example,
electronic publishing, tracking of content changes in documents, content
delivery, collaborative editing, and protecting copyrights.
Proof of Ownership
This use pattern focuses on managing and clarify ownership. It relies on all
previously mentioned patterns such as proof of existence, proof of order,
proof of identity, and proof of authorship together with the three basic security
concepts: identification, authentication, and authorization. Applications that
utilize this use pattern are, for example, systems for managing ownership
of real estate, cars, company shares, bonds, digital money, or cryptographic
currencies.
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