10.5 Determining if Using Blockchain is the Right Approach - Video Tutorials & Practice Problems

We will now focus on determining if using Blockchain is the right approach for you the goal of this lesson is to actually give you a framework So you can actually ask yourself and draw their own conclusion to determine if blockchain makes sense for your business or if not because blockchain is not right for everybody. Blockchain may actually give a lot of value in many situations but in some cases you're better off working with a centralized database. So this framework that I'll be sharing with you right now will give you a good strong way of you to think if blockchain is right for you. To do so, I wanna make reference to Paul Brody the Global Innovation Leader for Blockchain, for Ernst and Young who came up with this framework and the objective of this is if you can answer yes, to at least three of these questions then blockchain will make sense for you, If not, you might be better off working with a centralized database. So let's go through this process right now and start asking some questions. The first one is, are you trying to get multiple parties to work together? If you're not, why would you need a distributed ledger? You need to have multiple parties that are actually all working with certain amount of certain siloed data so you can all bring them together so are you trying to get multiple parties to work together? Great, first question. The second one is, do you have trust issues between these parties? So some examples or payments, royalties and purchase orders. When you're dealing with a transaction of value, it's very important that everybody's working on the same data that's why blockchain makes so much sense so do you have trust issues when you're dealing with these parties? Because perhaps one of the parties may actually tamper with the data or somebody may actually delete and lose some data? So do you have a trust issue between sometimes the communication between these parties, working with a blockchain ensures that everybody has a single source of truth. The next one is, is it important to get tamper proof record of the transactions between these parties? As I showed you, when you're working with a blockchain, you're actually keeping a record of every single transaction in a way that's tamper proof, and it is immutable. So this is a key question to ask. The next question is, are you moving something of finite value around as I specified when you're dealing with blockchain, you're able to move an asset value. And because you know, an exact record that's permanent and immutable, of where that asset is, it's very important to keep the accurate information. So as a result, if you're moving something of finite value around, it's important to keep track of it, and blockchain may be a good option for you. Finally, does the group benefit from increased transparency? So when you're dealing with multiple parties sometimes need to ask yourself, would that group of parties work and benefit from having increased transparency across them? If in fact they do, working with the blockchain would be great. If you'd rather not have that level of transparency, then blockchain would definitely not be an option for you. So if you take all of these questions together, if you can answer at least three, yes, then blockchain is the right choice for you. If not, you might be better off working with a centralized database.