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5 reasons tell you that blockchain may not be suitable for your business!

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5 reasons tell you that blockchain may not be suitable for your business!
5 reasons tell you that blockchain may not be suitable for your business!

With the increasing maturity of blockchain technology, many companies are ready or have added blockchain to their business operations. But as we mentioned in the past, does your business really need this technology? Does not using popular technology right now affect the company?

Alexandr Kurbatov of EnCata Soft CBDO said the answer is not yes. He used 5 key factors to explain why companies should abandon the introduction of popular technologies and cases when they are still needed.

Let’s listen to what Alexandr Kurbatov has to say.

Alexandr Kurbatov

I am a person who likes to exercise very much. I just signed up for a fitness class recently and started to attend regular classes.

I have always thought that with regard to keeping up with exercise, you actually only need a pair of old sneakers and some willpower. Having said that, I still slapped my face bit-distinctive Puma sneakers, hundreds of Nike T-shirts, and Adidas shorts are more expensive than my dog. And this is just the entry equipment for an athlete.

My equipment is really complete. It’s just that, do we really rely on these things to lose five catties? I am very skeptical.

The modern business world looks a lot like my gym. Just as marketers seize every opportunity for hype, developers have become accustomed to training agile skills and lean technology. Every CEO wants to push the blockchain into his own project, whether it is a start-up company or an international company with tens of millions of profits. But usually, no one knows why they really need it.

Therefore, if you still think that your project must have a blockchain, then I would like to spoil the key factors of “businesses really need blockchain”:

  • Solve the trust problem
  • Build a decentralized system

It should be noted that the above two points are not the most comprehensive. It just means that if your project does not have these two key issues, then you can temporarily forget about the blockchain.

If this has not convinced you, then I can only use the following 5 reasons to make you give up this idea.

1. Short-term data

The modern world is changing rapidly. Whether it is the text messages you receive, newly created resources on the Internet, or videos on the website, they will be revised and replaced quicklyand most of the information will quickly become out of date. But in the blockchain, data will be stored almost forever, even though they may be useless tomorrow.

Does a large company or even a growing startup need this garbage? This question is rhetorical, not substantive.

2. Speed

The speed of decision-making is one of the survival factors of a company in a competitive environment. Currently, the blockchain cannot be operated quickly. Each node must confirm its identity, which greatly delays the decision-making process.

Take a closer look at this satisfactory technology, and you may find that bureaucratic procedures in any country are quite time-consuming.

3. Privacy

Do you need a truly secure storage system to prevent others from snooping? Pull it down, you are in the wrong place.

Blockchain is more about transparency and trust. Although the technology uses encryption algorithms, it is mainly to protect the data itself and keep it unchanged, and it does not mean that it can become a security system that prevents access.

At the same time, blockchain means that many users can access, which in itself violates the principle of confidentiality.

4. Flexibility

The inability to make a lot of adjustments to data is a feature of blockchain. A brief history of changes will be spread in front of all users. If it is really important to them, then it is also important to your project, which means there is a point in the blockchain after all.

But in most projects, this is not necessary. So this idea becomes meaningless.

5. Encrypted digital currency

In fact, this is an open secret-you don’t need to use the blockchain to issue cryptocurrency. You can issue virtual currencies faster and easier. For blockchain technology, it is more important to create an ecosystem and community to support the introduction of these solutions.

It takes about two years to create a blockchain from scratch, but this does not guarantee the creation of an ecosystem.

After creating a true and complete community in the same period, you can easily implement a blockchain if you really need it.

Therefore, despite the existence of payment functions and blockchain at the same time, the most popular cryptocurrency, Bitcoin, has been created for more than 15 years, and only after a complete ecosystem has been created did it begin to soar. Even if only briefly.

In general, we cannot deny the practicality of this technology. Blockchain will be used in the future, perhaps in another form, which is not tied to cryptocurrency and scams.

After transformation and development, blockchain technology has gradually become a part of people’s daily life. This article can be used as a reference to evaluate whether your project really needs blockchain. It is not denying this technology, and most modern projects based on blockchain are safe.

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