Is Blockchain safe?

Because it is decentralised and dispersed, blockchain technology is extremely secure. Because there is no single point of failure, it is significantly more difficult to corrupt the system. Hacking into one portion of the system will not have any effect on the rest of the system.

How Does blockchain work?

Blockchain work in simple 7 steps

  1. Transactional information
  2. Creating a chain of blocks (with a hash)
  3. Procedure for creating the signature (hash)
  4. When does a signature become valid, and who is authorised to sign a block?
  5. How does this make the blockchain immutable, and how does it work?
  6. What is the governance structure of the blockchain? Who is in charge of establishing the rules?
  7. the final step, is to consider where this leaves cryptocurrencies.

To learn more about this, read this article.

When Should We Use Blockchain?

Let’s walk through a decision tree that will guide you through the process of determining whether to use blockchain to solve your problem more effectively.

Do you wish to have the brokers and intermediaries removed from the equation?

The first thing you need to grasp is the context in which your company operates. Is it necessary to have intermediates or brokers in your system, or would removing them assist you in solving a vital business issue? If that’s the case, you’ll need blockchain technology. In order to better their work process by eliminating intermediaries and enabling them to make transactions more safely and quickly, banking solutions are turning to distributed ledger technology, such as CORDA, for assistance.

Do you have any digital assets to work with?

Blockchain technology is an excellent solution for operations that involve the creation of digital native assets. This refers to ordinary assets that can be converted to digital form. There is a clear and simple procedure that may be followed to build a digitised version of the physical representation that contains all of the relevant features. Real estate properties, for example, can be digitised by saving all of the pertinent information about them.

Do you have the ability to establish a trustworthy and everlasting record of your digital assets?

The next thing you should look at is whether or not you can produce a digital asset record that is both permanent and authoritative. When transitioning from a traditional procedure to a blockchain, this is one of the most crucial tasks to take. Before you can begin the procedure, you must have a reliable source of confidence. Additionally, if you have many sources, this will not function because it will cause a conflict with the generation of the digital record. The generation of digital assets is a shared duty that requires participation from all parties.

Does your company’s operation necessitate the use of high-performance transactions?

The same cannot be said for every firm. Some businesses require systems that are both quick and capable of handling millions of transactions. If your company is also in need of speed, then blockchain might not be the best option for you. Blockchains are quick, but they might be a hindrance when it comes to certain criteria due to their size. It is possible that more custom-based solutions may be available in the future that will be both speedy and able to keep up with demand due to the current breakthroughs in blockchain technology.

Do you intend to store huge amounts of non-transactional data in your system?

When it comes to storing non-tractional data in huge amounts, blockchain is not a particularly effective solution. If they are required by your company, it is always preferable to choose a different solution than what is currently available. However, in specific use-cases where the use of blockchain is critical to the entire ecosystem, this can be overlooked or even ignored.

Do you need to rely on a third party who you can trust?

There are many businesses out there that would be unable to function without the assistance of a trusted third party. If this is the case, then deploying and utilising blockchain technology may be a difficult task. Because blockchain does not allow for the modification of data, it becomes difficult to operate networks in accordance with regulations. To put it another way, when implementing a blockchain project, it is essential to involve the appropriate authorities. This will ensure that compliance and the rule of law are preserved even while employing cutting-edge blockchain technology to transact business.

Do you want to handle value exchanges or contractual agreements in your organisation?

If not, certain blockchain systems may be able to provide you with this feature, but it will necessitate additional effort.

More specifically, if your business does not revolve around the management of contractual agreements or the exchange of value, blockchain will not be of much help to you. That is why a company that is utilising blockchain technology to increase business value and lower expenses should make every effort to monitor transactions that include digital assets.

Do you require shared write access for your project?

You must now determine whether you require write access to be shared or not. Simply put, it means that you must determine whether or not other members require write access to the blockchain before granting them access. If this is the case, it is preferable not to use blockchain and to hunt for an alternate solution instead.

Is it necessary for blockchain transactions to be made public?

Finally, you must choose whether or not your transactions are required to be made public. If you want your transactions to be visible to the public, public blockchain is the way to go. If not, then a private blockchain will be of assistance to you!

In a nutshell, you should use blockchain if you require the following:

  1. Maintaining and protecting digital ties
  2. Optimal utilisation of a decentralised network
  3. There is a lack of trust among the various stakeholders in the ecosystem.
  4. There is no longer a need for a middleman.
  5. Record secure transactions among numerous parties

Data is not consistent, and you must keep track of it in the proper manner.