When it comes to technology, blockchain has been hyped up as the revolutionary solution to a variety of problems. But, while it’s important to understand when blockchain is the right solution, and when it’s just a marketing trick. To start, let’s look at the advantages of blockchain. Blockchain technology allows for direct, secure, and transparent transactions. This means there’s no need for a third party, such as a bank or a credit card processor, to process the transaction.
Additionally, blockchain technology is decentralized, meaning all nodes (or computers) in the network have a copy of the ledger and can verify transactions. This eliminates the risk of a single point of failure, meaning the system is virtually impossible to fake results.
But blockchain is not necessarily the right technology to solve a problem and can add complexity with little benefit. If a traditional database or system would provide a more efficient solution, then it is best not to use a blockchain solution. For one thing, though there have been improvements made, in terms of databases, blockchains are slow and can handle fewer transactions than conventional databases. which can be slow. So, if the application doesn’t actually need the security, transparency, or immutability that blockchain provides, a conventional database may provide a more appropriate solution.