Blockchain technology has been making waves in recent years, with experts predicting it to create a whopping $3.1 trillion in business value by 2030. However, as the initial hype subsides, it’s essential for businesses to pause and ask themselves a crucial question: Do we really need blockchain? In this blog post, we’ll break down the key considerations to help you determine if blockchain is the right fit for your enterprise.

Understanding Blockchain Basics

At its core, blockchain is a digital ledger that securely records transactions. It ensures transparency and security through its tamper-proof, distributed nature. But before jumping on the blockchain bandwagon, there are three fundamental questions to ask:

• Is Data Consistency Vital? If your business requires everyone involved to have access to the same, consistent information, then blockchain might be the solution. Otherwise, alternatives like spreadsheets or documents might suffice
• Can Data Remain Unchanged? If there’s a likelihood that information might need to be altered after it’s recorded, a standard database might be a better fit. Blockchain doesn’t allow for modifications once data is entered.
• Are There Many Contributors? If your business stands alone in providing information, or if there’s a high level of trust among contributors, a distributed ledger like blockchain might not be necessary.

Choosing the Right Blockchain

Assuming that blockchain is indeed a requirement, the next step is selecting the right type. This hinges on two critical questions:

• Enhanced Security and Multiple Witnesses: If your business demands heightened security with multiple trusted parties involved, then blockchain is a strong contender. Otherwise, workflows or sign-off processes might be more suitable.

• Transaction Parties: Does your business require transactions to involve a specific and trusted group of people, or can they be conducted by anyone in a more public setting? Depending on your answer, you’ll lean towards either a “permissioned blockchain” or a “public blockchain.”

Conclusion

While the initial blockchain hype may have simmered down, its potential to revolutionize businesses remains significant. By carefully considering the need for data consistency, potential changes, and the number of contributors, you can make an informed decision. And if the verdict is in favor of blockchain, understanding the distinction between permissioned and public blockchains will set you on the right path. So, before you embark on this transformative journey, take a moment to reflect: Is blockchain the missing piece in your business puzzle?