A solution that has the potential for changing the game is outcome-based pricing (OBP). Outcome-based pricing is a contractual mechanism in which the amount a buyer pays is based on the performance of the product or service. A number of industries have experimented with outcome-based pricing:• Some pharmaceutical companies have signed contracts with insurance companies that anchor payment to a drug’s performance. But outcome-based pricing is a situation where a blockchain (or more generally, a distributed ledger) solution can truly shine. Contracts already have contingencies for changing business conditions; outcome-based pricing adds a layer of secure data intake to monitor those conditions and take transactions to their conclusion.

Source: Forbes February 07, 2020 12:11 UTC