How do you know if you need to run a blockchain implementation project?

Whether or not a blockchain is an appropriate technical solution for a given application scenario, depends on a lot of factors. Organizations need to understand their needs and existing landscape before they finally undertake blockchain implementation.

Blockchain implementation can help an organization make safe and secure online transactions of various kinds. But every blockchain has its own set of protocols and ways to function. Different blockchains need to go through different compliance and risk-processes. Companies need to audit and test it a lot of times.

Blockchains follow different rules to update their blocks and may sometimes be expensive to implement. It is these differences that make a blockchain fit for one purpose and unfit for another. Therefore, your organization may or may not find blockchain suitable for its current operations. To guide your decision on blockchain implementation, you may refer the following models.

Models to guide blockchain implementation

Decision framework model

The blockchain decision framework model helps provide a detailed approach that discusses whether an organization should implement blockchain or not. It may prove useful for a company to use this approach before making the final implementation decision. Organizations should focus on collecting the required and relevant data to complete the blockchain decision framework and use it even before completing their POCs (proof of concept).

The decision framework can help companies decide which blockchain project they should choose; whether they should join a consortium or whether they should go for external or internal blockchain or non-blockchain projects.

The blockchain decision framework talks about evaluation of other organizations in the industry before adopting a blockchain project. Organizations can sign various multilateral agreements with each other and reap benefits when all of them implement the blockchain technology.

Sometimes it may so happen that a blockchain project may not fetch results even after putting in the required efforts. Thus, it is advisable to keep an eye on the tried and tested blockchains being used by other organizations.

Certain factors that distinguish between various blockchains, like smart contracts and requirement of permissioned or permissionless blockchains, do not really decide which type of blockchain project a company should go ahead with but they form a part of scoping activities that help to reach such a decision.

Other models

Apart from the blockchain decision framework, there are other models too that can help you know whether you need to run a blockchain implementation project or not.

IBM Model

This is a more market-sensitive model. It focuses on factors like lightning fast transactions, contractual relationships (smart contracts), need to keep transactions private or public, reduced costs, and a lot more. It helps you understand the market requirements and your ability to map them to your current practices. If you feel your organization would want to accrue the benefits of all or some such factors, then you can implement blockchain in your business.

Lewis model

This talks about solving a real business problem across industries like finance and education using blockchain. It focuses on privacy, scalability, and also whether a company has the required budget to buy blockchain software or not.

Blockchain is a promising technology that has the potential to be used across almost all industries. But applying the technology can be a huge transformation, one that involves complex decision-making. Companies need to constantly monitor the internal and external elements that will help them to not only know if they should implement a blockchain project, but also if they should continue with it or not.