Smart contracts can determine the terms and conditions of all transactions on the chain. The chain can also use data from users to validate transactions. This helps lower transaction fees and helps prevent fraud. Lastly, the project will operate on a decentralized autonomous organization (DAO) to help with stability and mutability. 


Market Rights on Cardano

Technologies such as DAOs pose an incredible opportunity for building and sharing music. Artists can form DAOs around their bands, creating tighter-knit communities of hardcore followers that they can call upon for help. The distance between the supporters and the artists becomes significantly smaller and artists are able, on one distinct platform, to interact with their most committed and excited fans.

Community Building on Blockchain in the Music Industry

Juicebox is a business-model-as-a-service and programmable treasury for community-owned Ethereum projects. The Juicebox protocol constructs and maintains the financials (treasury) for other Ethereum communities. 

Juicebox DAO

- Percentage of total funds
- Equal share

Different DAO models

DAOs form an instituion. The study of instiutional economics aims to understand the role of formal or informal institutions in an socio-economic context. 

Institutional Economics of DAOs

Monetary and Fiscal Policy of DAOs

Governance of DAOs

Forks are needed when the network requires of major or technical upgrades, the ones which changes the rules of the protocol. The fork can also be used to:
- Fix bugs
- Make changes
- Changes of the governance structure of the DAO

It's like a software fork, where developers create a new version of the software, but in this case applied on a decentralized network.

Once the Fork is made clients must update their software to implement the new fork rules

DAO Forks

Decentralized Autonomous Organizations (DAOs) are decentralized online organizations whose members have the ability to collectively decide how the organization should allocate its funds. They use blockchain technology to enable members to vote on the organization's decisions rather than relying on a traditional hierarchical structure. 

University of Minnesota - Twin Cities

New York University

- Token Systems
- Financial derivatives and Stable-Value Currencies
- Identity and Reputation Systems
- Decentralized File Storage
- Decentralized Autonomous Organizations
- Further Applications


Ethereum Applications

- Financial Services
- Insurance
- Government
- Supply Chain Management
- Healthcare
- The Internet of Things (IoT)
- Web3
- DeFi
- Music Industry
- Land Registration
- Business
- Video games

Blockchain Use Cases

Buterin, Vitalik. (2013). A Next-Generation Smart Contract and Decentralized  

Application Platform. https://ethereum.org/en/whitepaper/


Ethereum Whitepaper

A token system is the system in which a currency operates in Ethereum. It is a database with one operation which is to subtract X units from A and give X units to B, with the provision that A had at least X units before the transaction and that the transaction is approved by A. Token systems are a very literal implementation of the basic banking system's transaction functions on Ethereum. What separates Ethereum token systems from other blockchains is their ability to pay transaction fees directly in that currency. This is done by Ethereum constantly holding and refunding ether used to pay fees to the sender, refilling its balance by collecting the currency units that it takes in as fees and reselling them.

Token Systems

Ethereum uses an identity system in which anyone can register a name with some value, and that registration then sticks forever. A more sophisticated contract also has a function clause that allows other contracts to append it and make changes such as account ownership.

Identity and Reputation Systems

Ethereum offers cheap data storage by allowing users to earn small quantities of money by renting out their own hard drives and unused space to drive down costs of file storage. The contract for this works such that you split the desired data into blocks, encrypting each block for privacy. You then make a contract with the rule that, ever x blocks, the contract will pick a random index and give y ether to the first entity to supply a transaction. So long as a contract is still paying out money, you have cryptographic proof that someone is still storing that block of your file.

Decentralized File Storage

Decentralized Autonomous Organizations (DAOs)

Saving wallets

- If worried about getting hacked, you can write a contract such that person A can withdraw a maximum of x% of funds in a day and person B can withdraw a maximum of x% of funds in a day but together, they can withdraw anything.

Crop insurance

- Farmers can hedge their crops by purchasing derivatives contracts that pay out inversely based on weather conditions.

Decentralized Data Feed

- This could work where N parties all put into the system the value of a given datum, say ETH/USD price. The values are sorted and everyone between the 25th and 75th percentile receive one token as a reward. This way, people are incentivized to provide the same answer as everyone else which will most likely be the correct answer.

Smart Multisignature Escrow

- Allowing x different keys to interact with a given fund (i.e. 3 out of 5 keys can spend up to 10% per day while 2 out of 5 can spend up to 1% per day).        


 Cloud Computing

- Ethereum technology can create a verifiable computing environment where users ask each other to carry out computations and then optionally ask for proofs that computations at certain, random checkpoints to see that things were done correctly.

Peer-To-Peer-Gambling

- Many gambling protocols like Frank Stajano and Richard Clayton's cyberdice can be implemented on the Ethereum blockchain.

Further Applications

ENS Domains(Ethereum Name Service Domains) are a way to simplify wallet addresses. Wallet addresses are 64 characters long and can inhibit the sending of crypto.  ENS uses domains to replace these wallet addresses. A good comparison is that of a nickname. Someone could have a very long name, so they are often referred to as a nickname for simplicity. This is how ENS works. It takes the long wallet address and consolidates it to a domain like alice.eth. These domains can be bought and sold. They require fees to be held. 


ENS Domains

Stable-value currencies, often referred to as stablecoins, are an application of Ethereum smart contracts designed to maintain a stable value relative to a specific external asset, such as a fiat currency. They provide a critical mechanism for users to hedge against the high price volatility typically associated with cryptocurrencies, enabling more reliable transactions and decentralized financial operations.

Stable-Value Currencies on Ethereum

Financial derivatives, which are contracts whose price is determined by the value of another asset, are a common application of Ethereum smart contracts. A primary challenge in their implementation is the necessity for an external price ticker, such as the ETH/USD exchange rate. This requires the smart contract to rely on a data feed maintained by a trusted third party, introducing a degree of centralization. However, utilizing a third-party data feed remains significantly more secure than relying on price points from issuers that are susceptible to fraud.

Financial Derivatives on Ethereum

Businesses can use blockchain technology to reduce transaction disputes. This is because all transactions are stored and cannot be edited. It can also be more timely than other forms of transaction.


Financial Services

Blockchain can help governments with forgery and other identification issues. It can also help governments track the allocation of spending. 


Government

Supply chain information could be made public to those involved, offering more transparency. It can also reduce the time needed to identify issues in the supply chain.


Supply Chain Management

Health care records could be stored on the blockchain to provide quick and tamper-proof information. It can also contribute to medical research by giving medical professionals access to more data. 


Healthcare

Shipments can be tracked more easily and are less prone to being lost. It can also increase the efficiency of the IoT. It can do this by bringing together the many parties involved with a single transaction. 


The Internet of Things (IoT)

The so called third generation of the internet where it will be rebuilt on decentralized protocols by using blockchain technology. Web3 allows for fully native internet businesses that create and distribute digital content.eee

Web3

DeFi or Decentralized Finance is financial infrastructure built on blockchain. It is based on open protocols and decentralized applications. Smart contracts serve as the backbone of DeFi. Overall, it is much more open and transparent than traditional financial services. DeFi offers financial instruments without relying on central financial institutions such as banks and brokerages.

DeFi

The internet has already begun completely rearranging the music industry by making streaming services that are becoming far more popular than records and CDs. The supply chain between the many entities of the industry still has a lot of room to improve through blockchain technology.

Music Industry

Dapps are decentralized apps, they behave like traditional apps with similar functionality with the difference of running on a peer-to-peer network, such as a blockchain.

Dapps

As a shared digital ledger that creates an immutable record of transactions, blockchain is ideal for tracking the provenance of goods. It enables trustworthy shared information among suppliers that may not trust each other. It enables a group of independent entities, which have their own interests and information to protect, to share a common platform that holds information of common interest.

Blockchain for Business 

+ Encrypting personal identification IDs and allowing citizens to access this information.
+  Individuals can be in control of their digital data and the way in which it is utilized by different parties.

Personal Identity Protection

+ Transparent governance
+ Reduces complexity and the number of intermediaries involved
+ Faster processing
+ Lower capital requirements
+ Reduced risks of fraud, counterparty and human error

Trade Finance

Enabling secure, efficient payments in cross-border transactions by removing the need for intermediaries. Multiple organizations are taking advantage of blockchain to enable cross-border transactions

Cross-border transactions

+ Accessing a single source of truth easily.

+ Transaction validation and trasparency

+ Improving the data security 

Investment management

Insurance claims could be written into smart contracts that automatically determine the payout of a claim. This can allow customers to be paid faster.


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