Almost 5 years ago, blockchain use cases were only limited to creating cryptocurrencies. However, within the last 2 years, trends have changed and businesses actively consider blockchain. There is no doubt in the fact that it brings efficiency, but it is important to determine the type of blockchain for every use case.
Let’s have a look at some of the reasons as to why blockchain is a decent tech for your business.
We have been hearing about it for quite some time now. In fact, whenever you hear about crypto, decentralization is the hottest topic on the table.
It implies that a blockchain network does not store data in a central place. In fact, in any use case, the storage is spread all over the network and ‘nodes’ hold the ledgers. Furthermore, all participants all allowed viewing the data (depending on whether it is a permissioned or permission less network).
This feature is particularly important when it comes to supply chain and financial use cases. Once a transaction is carried out, NO ONE can alter or delete it from the network. That’s why it happens to be one of the most reliable provenance technologies.
Low operational cost
You must have heard about surging BTC mining costs, but that is something totally different. In regular business use cases, it basically refers to the elimination of intermediaries. Since there is no concept of middle-man, the operational costs are reduced and processes are more efficient.
For instance, let us take a freelance marketplace as an example. The presence of an Escrow service happens to be a core concern here. However, it comes at a cost and that too, a HUGE one!
But if a business uses smart contracts, it does not require the ‘traditional’ Escrow service which sucks money out of the pockets.
So basically, it all depends on the type of your business. If you are planning to create a cryptocurrency, you certainly need a permission-less blockchain.
However, if you fall in any category other than crypto, you may want to consider a permissioned network.