Blockchain is a new technology that is still difficult to find experienced specialists to work with in order to implement your idea in the best possible way.
Blockchain is currently one of the most breakthrough technologies, which is the best solution for launching projects where reliability, accuracy, security, transparency and decentralization are needed.
At the same time, blockchain is also a rather complex technology with its own features, advantages and disadvantages, which everyone who wants to use it must understand. Especially when it comes to using blockchain to optimize the business processes of real enterprises.
When is blockchain useful?
The main one is that blockchain is not a one-size-fits-all solution. It is not a magic wand that will solve all your problems, but a specialized tool that is worth using only in certain cases.
You want immutability
It’s a guarantee that members of your ecosystem will not be able to modify historical data. If immutability is not required, there are simpler methods for running it-platforms and applications…
Your system does not imply deletion or remediation
In blockchain, information can only be added, which is important for finance and fiscalization, but in no way suitable for storing personal and/or business data in ERP systems and other user databases, where you need to delete irrelevant data and constantly correct various errors and inaccuracies.
You need to establish trust between multiple parties
Blockchain is designed to establish trust between multiple parties without the help of a third party guarantor (a bank or the government). But if you need a system with only one party (your company), blockchain may be redundant. There are plenty of other solutions for that.
You want transparency, full or partial.
If you already use external controls (escrow and/or notary services) to verify and/or audit transactions and you’re happy with them, you probably don’t need blockchain. Unless those services are too expensive and you want to save money.
Is identification of system participants important to you?
Is the identification of the people and parties involved in a transaction important to you, to ensure that transactions can’t be tampered with or compromised? Blockchains are useful when you want to know the identities of the participants in a transaction or if users care about anonymity, but you want to be able to prohibit a particular participant from performing transactions on your network.
You need your own decentralized registry
These kinds of systems are usually quite expensive, so they are not used where a central server or group of servers is sufficient. However, if you want the reliability of the system against node failures and the security and integrity that comes from having multiple participants, then you need blockchain.