Blockchain is not a magic bullet for all application part 3

by Lumai Mubanga

In parts 1 and 2, we discussed a number of characteristics required for applications to consider before leveraging blockchain platform for efficiency and robustness. In this article, we round it up with three more criteria for blockchain use.

Need for Chain of custody

In order to fit well in adopting the blockchain platform, the application should have an emphasis on the chain of custody. For example, supply chain management systems that require keeping track of the origin of certain medicines, drugs, wines and other products would consider using blockchain for such accurate traceability. The reason is that, once an item or merchandise is certified and placed on the blockchain that information cannot be deleted and will be permanently available for scrutiny. This will help keep and maintain integrity.

By keeping that chain of custody online on the blockchain, customers anywhere in the world who are interested in the product will simply scan the product labels using QR code to retrieve the whole chain of custody for that product.  This applies to all applications used in the tracking of tangible and non-tangible merchandise.

Abundant Red tape

Too many regulations or conformity to formal rules or standards, which are excessive, rigid or redundant, usually hinder or prevent action or decision-making. If features of an application demand red tape, it becomes a suitable application for the blockchain.

Let us take a repetitive red tape procedure of job applications. Usually, the prospective employer will demand your graduate certificate. Then, you still need to have it verified and authenticated by the awarding university. You need to send money for that to be done for you before the university release it to you or the university. This may take some time. If you make another application to another prospective employer, you will need to go through the same procedure likely repeatedly.  Such obvious, tedious and repetitive procedural requirements can easily be handled by an application on the blockchain.

Many to many relationships

Databases take advantage of many to many relationships. This simply means that there could be many suppliers and many retailers interconnected to each other for trade. Products from one supplier may be sold to any retailer. Instead of searching for each supplier on its own, databases make it easier to make a search from a common market place. Instead of registering your business to every company, the database will bring all like-minded players at one market place and make that information available to everyone in a many to many relationships.

Thus, all applications that support a many to many relationship of business entities qualifies to use and take advantage of the blockchain platform. Otherwise, it may not leverage blockchain efficiency.

In conclusion, all applications with a need for a chain of custody, abundant red tape and require many to many kinds of relationship to function are best candidates for placement on the blockchain. While scrutiny based on individual applications is definitely a factor, this is in no ways an exhaustive list. But the factors discussed in this series stand out as critical considerations.