The reason why blockchain has taken off over the last couple of years is that we are taking the principles of blockchain technology — the security, the redundancy, the ability to prevent hacking or theft — from a public cryptocurrency infrastructure, and applying them to business transactions.
Right now, it seems like everybody wants to do some kind of blockchain proof of concept or pilot. To make sure you focus on the right ones, that really create value, we have a five-point test to check whether blockchain is a good solution.
Number one, are there multiple parties in this business ecosystem? Number two, do you need to build trust between the parties? Third, are you managing finite resources? A lot of the underlying technology of blockchains is created to prevent people from double counting the assets. Fourth, is there a complex set of business rules that bind the parties together so that it is more than just a simple back and forth? And fifth, does the ecosystem as a whole benefit from some level of increased transparency?
If you can say “yes” to three or more of these question, the chance is that you have a really compelling case for the use of blockchain technology.