Blockchain Applications

Use of InoChain in Various Applicati ons

Introduction
Inovatian Inc. has developed a blockchain that it named InoChain. It is a private permissioned
blockchain. This means that all nodes on the chain are controlled by Inovatian and all new nodes
added to the chain must obtain permission to do so. This is different than public blockchains and
solves a number of the problems posed by public chains; namely, that of potential backdoors
inserted by the unknown developers of the popular chains; that of rogue nodes that either
introduce malicious blocks; and that of organized nodes that cause disruption of service for a new
undesired service developed over the chain.

Inovatian developed InoChain originally to replace the Central Public Exchange or the Mobile
Switching Office in its 6G mobile networks in Africa (www.6gforum.net). However, it became
obvious that many governments and organizations need the service. Inovatian developed two
models for these large enterprises to benefit from its development:

1. Outright purchase of the blockchain source code which would give the organization an
opportunity to develop its own coin and its own applications.
2. Use of the blockchain developed by Inovatian and building applications on this blockchain.

Blockchain Applications
Data Storage
Data storage on blockchain is becoming popular. It is the most natural application for a blockchain.
We expect that most cloud storage will be on blockchain services within the next ten years. The
advantages are numerous:

1. Less expensive than traditional methods.

2. Secure: the data is encrypted and immutable.
3. Redundancy: the data is stored many times.
4. Private: the data can only be viewed or retrieved by entering a private key.
5. The data can be limited to a particular geography.

Currently, many companies provide cloud storage on blockchain services. The concept is simple as
illustrated in the figure below.
Inovatian added some unique features to its application for data storage:

1. Users can provide their own data storage and get credit for the resources they provide.
2. Inovatian will provide data storage nodes to ensure the integrity of the data.
3. The blockchain keeps track of the map of the file segmentation as an added layer of security.
4. The user can choose the nodes that form the blockchain of their data. This adds an extra
layer of privacy. In the unlikely event of a breach of the encryption of the chain, the user can
take their storage units offline and recover their data.

Digital Identity
All employees of an organization could be given a digital identity represented by their wallet. This
digital identity could be attached to biometric information using fingerprint technology or voice or
facial recognition. This could provide easy ways for organizations to validate the presence of the
holder of the identity. This could easily then be tied to financial transactions involving the individual.

Financial Transactions
It is noted that using the coin of a blockchain as a currency with a floating monetary value is illegal in
most countries. However, Bitcoin has become an accepted form of payment with many reputable
establishments. The biggest advantage Bitcoin provides, at the moment, is lower processing fees
than the services provided by financial institutions. This advantage may diminish when all the twenty
one million Bitcoins are issued and mining relies on transaction fees. However, it is perceived that
the transaction fees on a blockchain will not exceed 0.5% compared to the 1-2.5% of major credit
cards. The InoChain and its InoCoin are available to facilitate financial transactions such as
settlements of payments and money transfer. The big issue with any digital currency is finding
outlets to cash the proceeds.

Money transfer

Blockchain technology eliminates the need for a third-party trust figure, leaving both parties with a
decentralized ledger technology intervening between them during the transaction. This saves the
commission or fee charged by these middlemen for rendering their services. Already many new
remittance or money transfer companies like Abra (US) and Bitspark (Hong Kong) are offering this
technology to their clients. The main objective of adopting it is to bring down the high cost of
transfer in traditional methods.

Another benefit of utilizing blockchain technology is the time it saves compared to traditional money
transfer methods.

Foreign currency conversion

A digital, global currency not limited by national boundaries and regulations is bound to eliminate
the need for foreign currency exchange. But that is in the future. Currently, blockchain is serving as a
technology that can make normal currency exchange cheaper due to the currency conversion
charges the user does not accrue with blockchain. In a traditional method like a bank, conversion fee
is charged by banks according to their own rules and regulations. In this regard, this technology
makes the process of currency conversion more democratic apart from making it cheaper.

blockchain can bring in a revolutionary change in the way users transact. By making the entire
process democratic and free from the direct control of government and financial institutions it will
turn it into a market-driven enterprise. This enterprise will be more reliable as it depends on the
mass verification done on the blockchain network. It will be faster and cheaper as it will save the
extra costs that are charged by middlemen. It’s no wonder then that blockchain is being hailed as
the new future of financial or even other types of transactions.

Anonymous Transactions
Organ Donation
Many transactions require that the sender and receiver remain anonymous such as organ donation.
Blockchain could be the perfect vehicle to match donors with receivers while maintaining
anonymity. Also, blockchain could maintain the order so that either a first come first served basis is
established for the delivery of the service or a bidding system is established.

Voting Systems
The blockchain can establish an electronic identity for individuals and ensure that they only vote
once in any election. This can provide a global access to the voting system as well.

Smart Contracts
Smart contracts are electronic contracts. They can remove the need for escrow agents as in
the case of purchasing real estate and being concerned about the sequence of events.
Should one pay first or register the documents first. In some jurisdictions this is resolved by
the introduction of a trusted escrow agent who holds both documents and ensures that
both parties’ interests are protected. As in the case of blockchains removing financial
institutions in financial transactions, smart contracts remove the need for escrow agents.