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– The media often speak of the great potential of blockchain technology for business. At the same time, crypto-currency reports are becoming increasingly critical. Where are the connections and where is the truth?
Original Article | Author / Publisher: Sebastian Human : There are undoubtedly many possible uses for blockchain technology. For example, it forms the basis for new business models, such as the legally compatible resale of used software licenses. For example, it can be used at any time to verify for which steps and transactions the licenses are resold. This is encrypted in a unified database, the blockchain, across the entire supply chain. In this way, strict legal requirements are met and the business is transparent to all involved.
At the same time, it is the area in crisis that started it all. Cryptocurrencies like Bitcoin experienced real hype a few years ago. But in the meantime, reports of bubble blast speculation, a poor environmental balance up empty coffers in the QuadrigaCX encryption exchange were reported. In addition, ambitious expectations have not been met, such as in actual trading and the online store is still paid in cash, credit card, direct debit or PayPal.
When does the blockchain make sense?
Therefore, companies should carefully consider whether blockchain is the right technology to implement a project idea. Finally, attractive and proven alternatives are available. These include, for example, a SQL database, a data management system, or a cloud-based software as a service solution. As a general rule, companies have already acquired practical experience so that implementation is generally easier. However, blockchain may be the ideal solution for certain scenarios. This can be determined with the help of the following template.
In the first step, companies should clarify whether various parts of the deployment scenario share data with each other. The more participants are involved in this system, the more likely a blockchain will come into question. However, a crucial point is whether they know each other and trust each other. Only in case of lack of confidence does a block chain exist, because here everyone involved can view the entire transaction history at any time without revealing their identity.
It is also important that transactions are interdependent or based on one another. Pure data storage or standalone transactions are typically more efficient with alternative technologies. For dependent transactions, blockchain provides a complete tamper-proof audit log of all changes. In addition, only verified participants can attach transactions. This process is understandably confirmed by most of those involved.
It has been mentioned that blockchain technology sometimes has problems with latency and performance. Therefore, it is only suitable for usage scenarios where certain delays in processing transactions are tolerated. It can replace complex and / or expensive approval processes with simple and secure processes. However, data protection is not fundamentally guaranteed because, especially in the public block chain, confidential data can be viewed by all parties in all transactions. Here, then, it offers a Private Blockchain, but it requires a certain effort for configuration, operation and management.
Conclusion
Blockchain is not a “just in case” solution. Undoubtedly, it offers many advantages to various application scenarios and opens up new business opportunities. But everyone involved must accept and introduce the system. An independent consultant can provide valuable assistance in decision-making and implementation.
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