Global businesses today must consider these effective alternatives before approving the application of blockchain in their projects.
FREMONT CA : Since Bitcoin made it into the headlines all around the globe, blockchain's popularity has been skyrocketing. Organizations across several industries are examining innovative ways to utilize this technology and improve their offerings. While cryptocurrency has emerged as the first and most feasible blockchain application, the technology finds suitable applications in the banking and financial industry. Experts are still debating the ability of blockchain to deliver actual business value, but that doesn't stop companies from leveraging it. There are numerous obstacles blockchain will face before being considered for general application.
While the capability of the technology for offering transparent and immutable records of transactions with decentralized control is unquestionable, blockchain currently isn't expected to handle the substantial volume of transactions that are performed globally every day. Hence the problem of scalability is still quite prominent.
Due to blockchain's limitations, especially in applications across MSMEs, businesses could employ efficient alternatives that deliver identical results while being very user-friendly and uncomplicated. Following are a few alternatives that businesses can consider before jumping to the blockchain.
1. Centralized Databases: Though decentralization is a trendy concept in the tech community today, it might not be suitable for all types of applications. When decentralization is performed by duplicating the same information multiple times, it reduces the network's overall efficiency, raising scalability issues and uncontrollable energy consumption. Hence not all businesses should shift to decentralized databases if their operations don't permit such transitions.
2. Cloud Storage: Blockchain generates several redundant data storage systems due to backup characteristics that are being stored at multiple nodes. While this may seem all right for smaller volumes of data, the process isn't feasible for giant enterprises that house ever-growing data streams. In this case, cloud storages come in handy as a cost-effective and efficient alternative.
Owing to the ever-increasing hype around blockchain, it is expected that the technology's usage will only increase in the coming years. But businesses must also evaluate other technologies that produce similar results. This will also help technologists identify areas where blockchain can be improved and add value, driving advancements in technology across various industries.