Alternatives to Blockchain

by Sonali Mishra Human Resource Executive

A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.

Following are a few alternatives to blockchain that businesses must consider along with blockchain while investing in innovative applications:

Centralized databases

Although “decentralization” maybe a popular buzzword in the business and tech community, it may not be the answer to all problems. Especially when the decentralization is done by replicating the same information across multiple devices. This only makes the entire network of devices inefficient and slow, which ultimately leads to the scalability problem and unsustainably high energy consumption. Thus, businesses should not attempt to shift to decentralization through blockchain unless specifically required by their situation.

Coud storage

Alternatives to Blockchain

Blockchain is also considered as a great way to build redundant data storage systems due to the “backup” of data being stored on multiple nodes. While this may be alright for small volumes of data, large volumes of enterprise data that keeps growing with time cannot possibly be replicated across multiple devices. Instead, businesses can opt for high-capacity and high-speed cloud storage services that are hosted in high-tier data centers. This will be a much feasible option for storing data than relying on blockchain.

Other distributed ledgers

Sometimes a distributed ledger technology is what businesses may actually need. If upon a thorough analysis of its problem, an organization deems it necessary to employ a distributed ledger, it should consider those other than blockchain. An example of such distributed ledgers is Hash graph. Hash graph can give businesses the benefits that are promised by blockchain, i.e., decentralization, security, and network transparency. However, it does not have the scalability issue and can potentially process enormous volumes of transactions in seconds. This makes it a superior alternative to blockchain for businesses that require such functionality.