What type of Blockchain is best for your company?

What is it about?

Blockchain is a technology that allows secure money transfer in the form of cryptocurrencies (such as Bitcoin) without a central authority to verify the transaction. However, it is also useful besides digital money transfer. In a Blockchain, users can share their data with each other without the risk of tampering. This is useful, for example, for tracking a product throughout the supply chain. But, all existing Blockchain systems come with their pros and cons. Some are more secure, some more scalable, while others are cheaper to implement. This raises an important question: how do companies decide which type of Blockchain system fits their needs the best? In this study, researchers tackle this question by developing a decision-making framework. This model is based on the utility theory from economics. It helps decision makers choose the most useful Blockchain technology for their purposes, via an estimation of the potential risks and actual cost of implementing the technology. This helps the model reach an optimum tradeoff between security and cost. To test their model, the researchers implemented it in a meat processing supply chain.

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Photo by Hitesh Choudhary on Unsplash

Photo by Hitesh Choudhary on Unsplash

Why is it important?

Blockchain can be a powerful tool in the right hands. It can make the production process more transparent to buyers. It can make food and medicine safer by allowing companies to easily track down bad batches. Further, it is extremely secure. But, it can be costly to implement. Due to this, selecting the most suitable Blockchain system is important for companies and consumers. This study proposes a model that can be used for this very purpose. In addition, it helps those unfamiliar with the technology understand its costs, risks, and benefits. KEY TAKEAWAY: Choosing an appropriate Blockchain protocol based on the company’s needs is essential. The model developed in this study can help with this decision.