The time when adding the word blockchain to a project just for the hype is gone. Even Kodak announced the “Kodakcoin” which caused the stock price to triple, but…is there a use case?
It’s essential to build a logical decision tree to better understand if a blockchain fits your business’s needs.
If your business case needs one or more of the points below, then it may be a candidate to explore blockchain technology:
Multiple participants that need to have access to the data
- Need a common shared database
- Need to improve the transparency of data shared across different parties
- Need to have a synchronized database across different parties
- Parties involved may have conflicting incentives
- Need an immutable database
- Rules of the business network can be established from the beginning
- Need an extremely redundant database
- Need to look cool in front of stakeholders 😉 Nah
If your use case fits one or more of the points above, then blockchain may be the right solution. Maybe it’s time to POC it!
You can also use this blockchain decision tree to help with the decision. Now that we have looked at the questions that make we need to ask to make a blockchain use case, we also need to look at the limitations. It’s not everything sunshine and rainbows in the blockchain world. Blockchains are still limited for some use cases, and they may not be suitable at all to be used as:
- Data warehousing
- Storing big files or large volumes of data
- To replace purely centralized databases
- When there’s no need for a network or for sharing data
- When there’s a need for a very high I/O (there is some latency)
- Just to look cool to investors or to the management
Does your business case pass the test? Is it a good candidate for blockchain technology?