A quick and dirty guide: Is blockchain right for my business?
I recently gave a presentation at the Milwaukee Blockchain Meetup on the “table napkin” framework I’ve been using to evaluate whether blockchain is a good investment to solve any given problem. By “table napkin,” I refer to a 1-minute analysis, not the more extensive analyses that have been developed (and work really well, see below).
Anyway, a couple of individuals, justifiably, tested my framework with specific examples. Fortunately, I was saved embarrassment by running their concerns through the framework process.
This made me think, why don’t I open it up to a wider audience and see if they can poke holes? It would be really cool if we could, in 1-minute, get a general idea if blockchain is the right solution for any business problem.
So my challenge to you: can you think of an example of a blockchain use-case that would be a good investment that doesn’t pass all the criteria in this framework? Or conversely, can you think of a use-case that does pass all the criteria but would not be a good investment?
We always start with First Principles. What are blockchain’s first principles?
- Transaction immutability
- Transparency of transactions to network participants
These principles enable the creation of trust between two or more different parties, without an intermediary.
Now, do the following.
- Define the problem you are solving in terms of dollar cost
- Define the current process for creating trust between the different parties
- Answer the following questions
- Does this problem include a transaction of value?
- Does the problem stem from a lack of trust?
- Could a blockchain solve the problem less expensively than current solutions?
If you answered yes to all three questions, then you may have a viable use-case. However, this framework works to disqualify use-cases, not qualify them. Therefore, if a use-case passes all three, you should still conduct an extensive analysis.
What did you come up with?