As the blockchain market continues to thrive, a wide range of distributed ledger technologies/DLTs is now open for enterprise users for the application of blockchain. While looking at choices, it is critical to consider that time/value ratio can be boosted by leveraging present networks and certain protocols are suited to certain use cases.
While selecting a blockchain technology, here are the questions I consider important for ensuring the correct choice:
#1 Are Protocols Open Governed and Open Sourced?
Posting codes on open developer sites don’t matter. I would always stress that the governing body should maintain the code line based on enterprise needs. Supporting continuous innovation for enterprise requirements, open source code bases permit contributors to suggest updates and policy changes.
#2 Who Will Participate in Blockchain Networks?
Participants in the blockchain network can include application providers, competitors, regulators and business partners, for an organisation. Most enterprise networks need a subset of network members to know each other. This is known as the permission network.
#3 What is the Nature of the Use Case Driving Transactions?
I consider the type of transactions sent to the network to be critical while selecting a protocol. For transactions, you need to consider the security and privacy implications. Protocols you need should ideally keep data transactions private among members.
I find that many DLTs struggle to carry much-needed modularity levels and instead rely on burdensome protocols such as proof-of-work to scale. Changing to these aspects for private networks requires complicated development processes to undergo adaptation.
#4 Does Blockchain Really Meet Other Enterprise Requirements?
This is just a concern revolving around selecting the right DLT. Allied considerations are scalability and regulatory risk as well as skills available and enterprise application support. The DLTs must be scaled as networks grow. But aspects like complicated peer compiling methods limit the scalability. A big question here is regulation on crypto trades. Regulatory actions on protocols regarding public cryptocurrencies must be in place.
#5 Does Blockchain Address Data Quality?
Blockchain solutions need to ensure that timely updates and data quality are not compromised. Stopping data quality issues is essential, as data contamination can ruin a blockchain solution. Key concerns underlying this question include how data is planned to get into the blockchain, how what is taking place in the blockchain is matched with other enterprise systems, how smart contract logic is extended into business processes and how data will be analysed.
I strongly advise against using a blockchain just for the sake of using it. You need to be in the context of a network and create data efficiency. People should consider the value of blockchain technology before diving in.