I recently realized that one of the reasons why most of the business leaders don’t consider Blockchain adoption is because they don’t understand what is it and how their business can use it to solve some specific problems. Here is my point of view why blockchain can be useful in some specific cases.
The blockchain is simply a type of a database or peer-to-peer distributed ledger.
It is one of the most expensive ledgers and in many cases, it doesn’t make any sense to replace existing relational database with blockchain.
But in some cases blockchain may have a significant positive impact because it has several interesting features:
- Transparency and Trust
- It’s immutable and append-only – records can only be added to that database and never removed or changed
- It’s updateable only via consensus or agreement on the state of the data among peers
- Blockchain databases are distributed among multiple computers (nodes) that store full or partial copies of that database
- Remove monopoly and single point of authority and keep trust between parties
- Security and Fraud prevention
- The records on blockchain are secured through cryptography
- Every transaction is signed with a personal digital signature
- If a record is altered, the signature will become invalid and the peer network will know right away that something has happened
- Blockchain don’t have a single point of failure and cannot be changed from a single computer
- Value Exchange & Micropayments
- Cryptocurrencies allow transferring value between parties without banks, governments
- Transaction cost is almost zero comparing to Visa/Mastercard payments (600,000 transactions for $0.01 in Stellar)
Do you think your business can benefit from some of these features?