For those who are new to blockchain , This is a very common problem , Let's compare the traditional database implementation and blockchain implementation through an example , Then we can understand the benefits of blockchain

1. Database mode

Take the business scenario of supply chain as an example , There are many parts in the whole supply chain , for example manufacturer 、 logistics 、 Wholesaler 、 distributor 、 Retailer

In the process , The operation of a commodity is tracked by each part independently

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Each part has its own database , Record the status of the goods separately

The problem with this approach ：

  • Multiple data sources

anytime , These databases may have inconsistent data , Because the data is processed independently , This is related to the processing of each part , It's also related to the data transmission of various parts

  • Human error

Human problems can also lead to data out of sync in various databases , For example, disputes between parts

  • cheating

Because business interests , Some people modify their databases , And say your data is real

  • Relying on intermediaries

The dependence on agents will increase the cost of manufacturers , And reduce efficiency

  • Vulnerability

Due to the involvement of middlemen and multiple copies of data , Manufacturers can't control the flow of counterfeit goods into the supply chain , Or the outflow of authentic products , It's also very difficult for customers to distinguish the authenticity of products

2. Blockchain mode

With blockchain , We need all parts to track the status of the product together

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Each part can have its own application , But the storage of data is single , It can be called “ Distributed ledger ”

  • A single data store , Use cryptography to protect

  • Each part has the same copy of the data

  • When there is a new transaction to be recorded in this account book , You have to get permission from all parts

  • The transaction information in the ledger will never be changed

benefits ：

  • Single data source

Any time , All parts refer to the same data

  • Human error can be detected in advance

The action of the ledger requires permission from all parts , So human error can be detected ahead of time

  • Security

Any act of betrayal will be discovered immediately , Through the comparison of the account data of each part, we can know

  • Disintermediation

Eliminating middlemen is the biggest benefit of blockchain , Reduce the overall cost of manufacturers , It's the manufacturer who has direct access to customers

  • Normalization

Through the transparent audit of blockchain , Greatly improve the standardization of the whole process

Summary

This article is translated from  

https://dzone.com/articles/why-do-we-need-blockchain