Questions to Ask Before Choosing a Blockchain Technology
While everyone involved in the heated debate about the future of crypto currencies, one thing that has received experts’ consensus on is the possibility that blockchain technology will transform the world. It seems like that blockchain has captured the idea (concept) of what every business needs. It is observed that as the blockchain market continues to grow, a number of different ledger technologies are becoming readily available to apply blockchain technology in particular business models.
Is the Data Dynamic Enough?
Why do you want to impose blockchain technology in your business? Just because you have some kind of data that you want to manage – a blockchain technology may not be your best bet. A simple database might get the job done. On the contrary, if your data changes frequently and uses a paper or digital spreadsheet based system where you manually enter the data – a blockchain (distributed ledger) technology is the right choice for you.
With blockchain, you can attain permanence of data and flexibility to add new records but without the tedious task of manual data entry. Only authorized persons can add new entries and ensure that it is secured as well.
Is The Protocol Openly Governed?
Simply posting a code on an open developer site is not enough, it needs to be governed by the developer to maintain the code according to the enterprise needs. It means allowing a business to submit suggestions, updates and policies. You can innovate and continuously transform the system for your business model needs.
Blockchain – A Complex Implementation
It is important for every entrepreneur to know that not every data integration issue requires a blockchain solution. And not all solutions provide enterprise-level capabilities required to go from a proof of concept (POC) to a pilot and production deployment. It leads us to the question whether the blockchain solution gets backward compatibility while applying updates and how the integration of data options impact the operations of blockchain network?
It all depends upon the complexity level of the blockchain system. You can understand it with the help of few pointers:
- How many data entries you are planning to record on blockchain?
- How many operators will participate in the network?
- What is the complexity of the smart contract?
The knowledge of all these things is required in execution step. Security is also an issue, and certain versions of blockchain technology allow the partition of ledger and network itself and provide controls over who can see the data and who will be the part of distributed ledger.
In this post, a number of questions have been posted that you must consider before choosing a distributed ledger technology. And once you get answers to all of these questions, simply get started with blockchain technology.