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Why the blockchain can't be a real solution for enterprise world (for now)

Kevin Zepeda
・3 min read

The blockchain it's that fancy thing to get more investment for your project but in real terms it's so hard applied to real world that other simples solutions.

Where does this probably anti progressive statement come from?

Well, I am in the business of providing technology solutions to companies (mostly startups) and in working with a blockchain solution (a bit unpopular among devs but acclaimed by companies because it was developed by IBM).

When analyzing the use cases companies want everything but having to maintain a blockchain, this is totally real they prefer to have a Spreadsheet with API before having to assume the costs of the blockchain.

Let's see what are the different factors that at the moment make blockchain unviable but we really need in many industries such as: Food, Agriculture, Logistics, Etc.

Decentalized, for what?

The decentralization of information makes it transparent and incorruptible, great advantages of blockchain. In the food industry it is clear how to use a distributed database, each participant of the business logic has the information, this information is generated with automatic processes, and consulted in each process in addition to enrich this information with each process. For example:

The vegetable industry

NODE 1

  1. Seed selection
  2. Sowing and feed treatment.
  3. Use of proteins.
  4. Sale of the harvest.
  5. Transportation and delivery.

NODE 2

  1. Delivery conditions
  2. Species grouping
  3. Storage and shelf life
  4. Packaging and transportation

NODE 3

  1. Product quality
  2. Purchase prices
  3. Selling Prices
  4. Market price
  5. Profit

Well, I hope you understand the idea. Each node inherits the information from the previous node and that information is very valuable, verifiable and associable to physical products, but why industries are not using it? Well it is not entirely true, many companies are already doing it, however it is not yet a global solution for all companies and all industries because the core of these companies is not technological.

Maintaining this type of technology is quite expensive and each node in the network must have its own infrastructure to support this distributed database that is the blockchain.

What is the solution? is complicated to solve, it is not enough to say that a startup will solve all these problems, it is very likely to try but there are:

4 scenarios in which the end customer will think before a solution.

Startup to do your process in blockchain over a network like ETHEREUM.

Problem: That network is not controlled by anyone, the information is public and can be used by competitors, at the moment it seems profitable, but the explosive price of ETH can make the project unfeasible.

Implement a solution like Hyperledger (Corporate Blockchain)

Problem: All network players are not in the same conditions to deploy such a large service, can you imagine a small producer spending on a data center as Walt-Mart would have, and only to be able to provide their product?

Create a private blockchain with a fixed reward system.

Problem: It is the same problem that ETH has if your reward is too little the network will not be viable but if it is too valuable it will be so expensive that you will not have customers.

Miners and nodes with fixed price for network usage.

Problem: That miners offer their services on demand seems a good idea, consider that you would be doing a cloud service in reverse. In these types of industries, it is easy to project cloud needs. But what about development to deployment, users will have to pay for all that time there is no real test environment and more importantly, would your customers not consider a cloud solution? it seems that blockchain is only more complicated cloud right? why not choose a cheaper cloud option that does the same?

Well, there is at the moment in the industry, I say it from my perspective (I am only a small provider of tech services) if you know more blockchain solutions applied to the real world I would like you to share them with me, I will be constantly writing on the subject , you want me to write something in particular you can also write in the comments

Discussion (1)

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CAO Mingpei

Nice share, I would like to understand more blockchain solutions applied to the real world, too!