…gree of trust is in this particular ecosystem and how fast this network needs to have data updated. For networks with very low trust and not needing real-time updates, a decentralized blockchain solution is a perfect fit. In other cases where coordination amongst many fragmented parties is not needed and real-time processing is a must, a central database hosted on something like AWS is the way to go. With this criteria in mind, here’s a potential future industry landscape:
…eral, Blockchains are always crucial in ecosystems where there are multiple untrusted stakeholders. If it’s merely about recording data, Merkle tries and git like version control systems on top of common databases would probably do a better job.
The main thing distinguishing a blockchain from a normal database is that there are specific rules about how to put data into the database. That is, it cannot conflict with some other data that’s already in the database (consistent), it’s append-only (immutable), and the data itself is locked to an owner (ownable), it’s replicable and available. Finally, everyone agrees on what the state of the things in the database are (canonical) without a central party (decentralized).