How Do I Determine Whether a Blockchain Is Necessary?
To determine whether the blockchain technology is suitable for your project, answer the following questions in sequence:
- Need multiple parties share data?
Will all business participants benefit from a complete and reliable record sharing system?
- Need multiple parties update data?
Will data accuracy and update timeliness be enhanced if multiple participants can record and propagate concurrent transactions?
- Must data be verified?
Can tamper-proof transactions in an untrusted environment improve the transaction throughput and reliability of partners?
- Can a central institution be removed?
Is removal of a central institution helpful to reduce costs and transaction complexity?
If your answer is "Yes" for all of the above questions, then your project needs the blockchain technology.