When to use Blockchain ?

When to use Blockchain ?

Blockchain technology comes into picture with peer to peer electronic cash white paper in 2008 and which gets implemented in 2009 with bitcoin. From that day onward, everyone has some interests to understand it and see if this fits in their use cases.

There are different blockchains available as of today like Bitcoin, Ethereum, Corda, Hyperledger etc. used for different purpose but for all these blockchains underlying concept is same which is move toward decentralized network where parties can work together even though they don't trust each other.

Before you choose which blockchain you need to use, you need to really find out that whether you really need to use blockchain or not. This post will help you in that regard.

Below flowchart has the steps that you can follow to check if you really need to go with blockchain technology.

When to use blockchain

When to use blockchain


Let's try to understand it in detail.

Do you need to store data in some storage (Database) ?

First you need to check if you need to store transnational data in some storage like database, file system etc. That transaction can be anything like Health records, voting details, Order details, customer details, money transfer.

As of today, you use different storage option to store the data but that storage is centralized storage. let's understand that with one example.

When you visit any hospital , first you go to reception and fill the form where you enter your details ( or through online portal) and doctor that you need to visit, Hospital receptionist enter the details in their database where they have data of other patients as well.

so in this example, Database act as storage where patient details are stored.

More than one party involved ?

When you determine about storage then next step is to identify if your network has multiple parties involved like vendors, partners etc.

Let's understand with below example.

Hospital partnership with other hospitals where they send the patient to partner hospital in case doctor is not available in the first hospital and have some share. Same way hospital can have network of vendors that provide medicines and operation equipment to hospital.

All parties need to read/write data to storage ?

Once you identified the storage and who all need to be involved in network ,next step is to identify if all the parties need to read or write data to storage.

Let's understand with below example.

When hospital refer the patient to other hospital, it does an entry in the storage which is accessible all the network hospitals that it refer the patient to second hospital and now it is upto the patient to visit that second hospital referred by first hospital or any other hospital of his/her choice. Now the point comes here, first hospital will expect some commission from second hospital as it refer the patient but in reality patient didn't showed up in second hospital. So to solve this issue, second hospital need to have access the storage and need to make an entry in that storage saying that patient didn't show up so they will not pay any commission to first hospital.

All parties known to each other ?

Here you need to identify whether the parties involved in network are known to each other or not. This vary for each blockchain like in botcoin and Ethereum parties are unknown to each other and in Hyperledger parties are known to each other but in this post, we are talking about public blockchain so parties does not know each other but they want to transact with each other.

Let's understand with below example.

Hospital in India does not know about hospital in London but still they want to be in network and transact with each other as patient of Indian hospital may visit to London hospital for some treatment and London hospital need all detail (patient history) and what procedure taken place in Indian hospital.


All parties trust each other ?

You need to identify if all the parties in network do trust each other or not. In current business scenario, we don't expect parties to trust each other but at same time they may need to business with each other.

Let's understand with example.

One hospital refer the patient to second hospital although they are competitors but still they want to do business and be partners. But when comes to commission both the hospitals do not trust each other and they need some sort of mechanism so that none of hospital can cheat.


Hope you like this article.


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