Blockchain For Business, Should You Care?
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of Blockgeeks
As a software consultant at Thoughtworks, I get to talk to people in many different fields about how we can improve their business with technology. Detailed here are some lessons I learned in my experience providing consulting advice about blockchain technology and blockchain for business.
Blockchain is fascinating because many people recognize it is going to have an impact on society, however thus far it has been a struggle to find solutions that are going to work. Let’s discuss some of the reasons why it can be hard to integrate public blockchain technology in traditional business models.
Blockchain For Business
Immutability and transparency for all have been touted as a key feature of the blockchain. What is not discussed that often is the trade off between immutability and customer protection. As a society, we prefer to have businesses control our information because we can appeal to them if there are cases of fraud, theft or other undesirable behavior. An example of this is that it is a good thing my local bank can reverse a payment to the wrong person.
One of the dreamy ideals in the blockchain space is we can verify everything on the blockchain; we won’t need to appeal to any central authority, and everyone will have the ability to set in stone any information they like.
The trade off here is that settlement on a blockchain is not free. The reason we can advertise how cheap cryptocurrency transactions are right now is that the network has not developed a fee market yet. In the future, if many people around the world want to settle information on a public blockchain the fees required to settle will increase. This will likely be more expensive than our traditional financial system. The reason for this is there is a limit on the amount of information in each block on the blockchain, which was enforced as a network rule to prevent Sybil attacks with negligible transactions and spam, and also blockchain bloat which will be discussed below.
Granted, there are solutions to this problem like layer two payment channels: see the
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