Need Blockchain? Read This First!

There are certain factors to consider when evaluating blockchain distributed ledger technology for your business. How many participants are in your system? What is the geographical distribution of the participants? What sort of performance requirements do you have? Defining the rules, risks, and responsibilities of each party in your blockchain system is useful as you consider transferring a database to a decentralized environment such as one of the Hyperledger frameworks.

Use-cases SUITED for blockchains

  • There is a need for a shared common database
  • The parties involved with the process have conflicting incentives, or do not have trust among the participants
  • There are multiple parties involved or writers to a database
  • There are currently trusted third parties involved in the process that facilitate interactions between multiple parties who must trust the third party. This could include escrow services, data feed providers, licensing authorities, or a notary public
  • Cryptography is currently being used or should be used. Cryptography facilitates data confidentiality, data integrity, authentication, and non-repudiation
  • Data for a business process is being entered into many different databases along the lifecycle of the process. It is important that this data is consistent across all entities, and/or digitization of such a process is desired
  • There are uniform rules governing participants in the system
  • Decision making of the parties is transparent, rather than confidential
  • There is a need for an objective, immutable history or log of facts for parties’ reference
  • Transaction frequency does not exceed 10,000 transactions per second.

Use-cases NOT SUITED for blockchains

  • The process involves confidential data
  • The process stores a lot of static data, or the data is quite large
  • Rules of transactions change frequently
  • The use of external services to gather/store data

I hope it helps you take the correct decision on when to use and when not to use blockchains instead of just riding along the blockchain wave.

 

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