It’s no secret that Blockchain is used when multiple mutually mistrusting entities that don’t want to use a third party, mutually agree to interact and make transactions. However, whether Blockchain is the answer to your woes remains a much-debated question amongst product/service teams. Here are some basics that ought to help clear the air.
Blockchain is the right solution for you if:
- You are looking to alienate intermediaries.
- You are dealing with digital assets and their ownership.
- You are looking to prevent tampering of data. Blockchain achieves it by creating a permanent authoritative record that cannot be changed.
- You are not worried about trusted party sources, blockchain is the answer.
- You are looking to manage contractual relationships without an intervention of a third party. Each Blockchain provider has their own contractual agreements between users, clients, threat hunters, and exchange platforms.
- You are looking to secure your transactions. Private blockchain can help you in case of sensitive/confidential data while public blockchain will not.
- You are looking for shared write access. All users in a chain will have write access.
When not to use Blockchain?
- If you are looking to perform transactions in milliseconds, blockchain might not be a right option. However, there are solutions being designed to increase efficiency.
- If you are looking to store large amounts of transactions, blockchain is not the best option as it uses minimal data in an encrypted and secure manner.
- If you want to know about contributors in a network, Blockchain is not for you as anonymity is one of its key concepts.
- If you are looking to control functionalities.
TL:DR if your need is to avoid third-party intermediaries while dealing with digital assets that cannot be altered by other users, make a secure and transparent transaction by encrypting and recording all the transactions in a block, you will be surprised how blockchain ticks all the boxes.
However, if you are looking for faster transactions with the ability to control functionalities, blockchain is still making in-roads in these aspects.