Bitcoin Global News (BGN)

January 14, 2019 -- ADVFN Crypto NewsWire -- Over the weekend, the Vermont state government publicized the fact that they would be running a pilot for a blockchain-based insurance scheme. Today, CoinDesk publicized a reaction piece that attempts to explain why this might be a truly important use case for the blockchain going forward, due to how it could change the insurance space for the better.

Through a quick analysis of the piece, it swiftly becomes apparent that this particular pilot is less of a novel use case for the technology and more of a call back to its’ primary utility. If you are wondering why, it is almost enough to look at potential features that the government will be examining, over the course of the pilot.

In short, according to CoinDesk, in the state’s announcement on Friday, it made clear that two agencies, the Vermont Secretary of State and the Vermont Department of Financial Regulation, will be looking at how the blockchain could help them to speed up just about every major paper-based process over time.

Considering this reasoning, it is fairly easy to see why this use case of the blockchain is not really new, but it is at least, akin to how it was meant to be used since Satoshi’s white paper. Before Bitcoin was created, the blockchain represented a digital ledger that recorded entries for all-time in an immutable format that was almost impossible to argue with.

Once Bitcoin was created, the world began to see how a new form of money fit into that equation. Perhaps, however, this effort by the Vermont state government could result in a wave of similar pilots. These pilots could, in turn, end-up eliminating unnecessary bureaucracy across different levels of government and therefore, saving large sums of money that could be ear-marked for more useful purposes.

In one sense, the central question then becomes: if this does occur, what additional use cases will follow?

By: BGN Editorial Staff