We have been gyrating around blockchain application and blockchain technology basics for long. I also discussed smart contract basics and Metamask in my endeavour to create a Token at my own. Lately, I felt we should discuss the project viability of a blockchain application.

It has become a common misnomer in business circles that the blockchain project is the name of the game. These days everyone is desperate to get associated with a blockchain project in some way or the other.

Also, there have many discussions on blockchain uses, the blockchain implementation, blockchain security and the blockchain ledger to name a few.

In light of the above, I thought let us do a preliminary study of an application project and try to find out whether it is desirable to switch to blockchain or continue with the existing system.

We shall not be doing a cost-benefit analysis. We shall just try to correlate the existing workings with the blockchain features. Once done, we shall try to analyze if it is feasible to move to the blockchain.

For a project to qualify for the blockchain, the first and foremost condition is that there should be data sharing in some form and there should be involvement of multiple stakeholders in the lifecycle of the data from generation to end service product. If this pre-condition is met, then only we should be studying the viability of implementing a blockchain.

Next, we should check from the following and find how many of these activities are involved:

1. Multiple stakeholders involved in data changes to be recorded –

Actions are taken on the data by multiple parties. This can be in the form of either getting or updating of the data from multiple parties.

2. Verification of records and trust among stakeholders in the validity of records –

It should be mandatory to create trust among the stakeholders and inform them that the activities will be recorded.

3. The complexity of Intermediaries in the data lifecycle –

When more than one stakeholder is involved, there should be complexity and a high-cost involvement.

4. Interactions on the data are time sensitive –

The application should be such that if time is saved in the business transactions, it is beneficial for the project.

5. Interactive transactions –

The transactions created between multiple stakeholders are interactive and interdependent.

As per the analysis, if the above blockchain pre-condition is met and any three out of the given five points are involved, the project is viable to be shifted to the blockchain.

If the conditions as mentioned are not applicable or are not happening, then blockchain should not be applied and we should continue with our present system of working.

For studying various blockchain applications, please check:

Blockchain Applications

Also, check the following link for learning blockchain basics:

Blockchain Basics Demystified

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