Is Blockchain Right For My Business?

Is Blockchain Right For My Business

As an innovative new technology, blockchain is considered by many for a wide array of projects. However, it may not be the right platform for you. Before jumping headfirst into a blockchain project, consider if it is the appropriate solution for your problem. Here are some things to think about before committing to blockchain.

The Project

First, find your project. Do not try to find a project that needs blockchain, but look for a real issue that needs to be solved. It is better to use technology as a solution, not as your starting point.

Centralized or Decentralized

Once you have your project, decide which type of solution fits it best. Would it benefit more from a centralized or decentralized database? If your issue needs a central data repository, you may be better off with a different solution. However, if your data needs to be decentralized, blockchain could be the right choice.

The Parties

Next, examine the parties involved. Blockchain is best for situations where multiple parties have to maintain shared information but they may not fully trust each other. This does not mean that either party has malicious intentions, but rather that each party may have different goals.

When there is more than one party involved, even those with the same end goals, it is best not to rely on one party to store and validate data. Instead, blockchain allows all parties to share a data source that cannot be easily altered or overwritten. In other words, it is an immutable ledger.

The parties can join together and create a blockchain network. In that system, data is broken up into pieces that are stored among all computers on the network. For new data to be added, every node must agree to add and verify the transaction before it becomes part of the blockchain. Everyone can see all the data, and each transaction is automatically timestamped for further verification.

Questions to Ask

Here are some questions to ask yourself and your team while considering blockchain as a solution. The answers will help you narrow down your project’s needs and find out whether blockchain is the right choice.

  • Are there multiple parties involved that need to access and change a single, shared source of data?

Even when all parties have the same goals, there is still the possibility of conflicting records or accounts. By having a single source of reliable data that everyone can access, it is easy to ensure a consistent and accurate account.

  • Is there a consistent, trusted third party involved to mediate information disputes?

If your project has a neutral third party responsible for ensuring the accuracy of records, you may not need to use a blockchain network. They can resolve information disputes by referring back to their accounts, which should be trusted by all parties involved. If that third party does not exist, blockchain can serve as the reliable and accurate record keeper.

  • Do all parties involved have the same goals?

If the various parties do not have the same goals for the project, each party may not be able to fully trust the others. Though they are working together, when parties have differing interests in the project’s outcome, they may do what they can to ensure their best interests.

  • Do you need to limit who has access to the system?

Regardless of the level of trust between the parties, you may need to limit who can access the project. If so, it would be best to choose a permissioned blockchain or non-blockchain system.

  • Is the problem worth the effort?

Though blockchain has many advantages, it is still a developing technology that requires a lot of effort and money to implement. When looking at your problem, consider whether it is worth using a blockchain solution, even if it would be the best fit. If you are spending more time and money on the project than it will bring back for you, you might be better off using your resources elsewhere. The AlleoChain platform has been designed to help you get started by eliminating some of the barriers to entry.

When you have the answers to these questions, it is easier to make the choice of whether to use blockchain. While it is a great platform with many benefits, it may not be the best solution for your project.

Final Thoughts

Blockchain is an incredibly useful technology with many possible applications. However, it is not always the best choice. Before selecting blockchain as your project’s solution, consider the different aspects of your problem.

If you find that blockchain is the right choice for your project, then visit AlleoChain.io and start leveraging the power of blockchain.