5 Reasons Why the Blockchain is NOT A Good Fit for Your Business

Alexandr Kurbatov, EnCata Soft CBDO, tells why businesses should abandon the introduction of popular technology and cases when it still needed.

I love sports, I really do. Recently, for example, I've enrolled in fitness and begun attending classes regularly. I've always thought, you just need a pair of old sneakers and some willpower. But I didn't see the whole picture. Special Puma sneakers, Nike T-shirt for a couple of hundred, Adidas shorts cost more than my dog. And that is just a starter kit for an athlete.

Well, nobody told me that personally, but only a blind could not see how much different my equipment was. Do we really need all these things to lose a few extra pounds?! Doubt it.

The modern world of business looks pretty much like my
fitness club. Marketers every time catch the hype, developers are already
accustomed to agile and lean, and every second CEO wants to push Blockchain into the project, whether it is a startup or an international company with a multi-million profit. And usually, nobody knows why they really need it.

Thus, if you believe that your project won't go without Blockchain, here are spoilers is a list of points when it is essential:

• To resolve the question of trust       

• To build a decentralized system

Note that this list is not the most comprehensive. Counting all that, one can forget about Blockchain, at least for a while.

If I still haven’t convince you, there are 5 reasons listed below to abandon this idée fixe:

1. Short-lived Data

The modern world is changing rapidly. Each new text in your messenger, a newly created resource on the Net or new trend on YouTube brings corrections.  And most part of the information is quickly becoming dated. In Blockchain the data will be stored almost forever, although tomorrow they may outlive their usefulness.

Does a large company or even a growing startup need this rubbish?! The question is more rhetorical than substantive.

2. Speed

The speed of decision-making is one of the company's survival factors in a competitive environment. Currently, Blockchain can't make quick operations. Identification must be confirmed by each node, which extremely slows down the decision-making process.

And you will likely find bureaucratic processes of any country quite a reasonable waste of time after taking a closer look at this desirable technology.

3. Privacy

You need a truly secure storage system, closed from prying eyes?! For God’s sake, come on – you are in the wrong place. Blockchain is more about transparency and trust. Obviously, the technology uses cryptoalgorithms, but primarily in order to protect the data itself, to make
unchanged.

At the same time, Blockchain implies access for many users, which in itself contradicts the principles of confidentiality.

4. Flexibility

The inability to make numerous adjustments to the data
is a characteristic feature of Blockchain. A short history of changes will be
spread before any user's eyes and if it is really matters for them, then it
matters for your project, which means that after all there's a point in
Blockchain.

But it isn't necessary in most of the projects, making the whole
idea useless.

5. Cryptocurrency

Here is an open secret – you don't need blockchain to
issue a cryptocurrency. You can issue virtual currency faster and easier, while for the Blockchain it is more important to create an ecosystem and community that will support the introduction of such solutions.
It takes about two years to create a Blockchain from scratch, but this will not guarantee the creation of an ecosystem.

And having created a real, integral community for the same period, you can easily implement Blockchain, if it is really needed.

Thus, the most popular cryptocurrency ecosystem has been created for more than 15 years, despite the presence of both a means of payment and Blockchain.  And only after the creation of a full ecosystem Bitcoin soared. Even if only briefly.

There is no sense to deny the usefulness of the technology. Blockchain will find its application in the future. Perhaps in another form, without associative binding to cryptocurrencies and scams. Transforming and developing, the technology gradually becomes a part of everyday life, but the vast majority of modern projects based on the Blockchain can safely exist without it. The hype is winding down, exposing the real pros and cons of the most ambiguous revolution attempt in the business. In that very business that looks pretty much like my fitness club.