Buy @ Amazon

Blockchain Versus Non-blockchain Ecosystem Comparison

There are many factors to consider before choosing/adopting blockchain tech-stack and the table below highlights some of them, as I see it:

  • Performance
    • Blockchain : Slower transaction throughput and higher latency due to consensus mechanisms and decentralized nature.
    • Non-Blockchain : Faster transaction throughput and lower latency because of centralized nature.
  • Scalability
    • Blockchain : Scalability challenges in public blockchains do exist; private/permissioned blockchains can offer better scalability relatively.
    • Non-Blockchain : Scalable solutions available in cloud-based environments for handling large volumes of transactions.
  • Cost
    • Blockchain : Costlier implementation and maintenance due to blockchain infrastructure requirements and mining/consensus costs.
    • Non-Blockchain : Generally more cost-effective with fine-grained control and flexibility.
  • Data Privacy
    • Blockchain : Better data privacy and security through cryptographic techniques that can be leveraged out of the box as is provided by the ecosystem. Public blockchains may lack full data privacy.
    • Non-Blockchain : There is scope of human error in missing things out at different layers and areas of spectrum, leading to data leaks that we witness from time to time.
  • Transparency and Trust
    • Blockchain : High transparency and trust due to immutability and decentralized validation of transactions.
    • Non-Blockchain : Transparency and trust may vary depending on the system's design and governance structure.
  • Regulatory Compliance
    • Blockchain : Some blockchain implementations can simplify regulatory compliance through traceability and auditability.
    • Non-Blockchain : Compliance in traditional non-blockchain systems are achieved with additional efforts and customization.
  • Use Case Suitability
    • Blockchain : Ideal for applications requiring transparency, decentralized trust, and traceability, such as supply chain, identity, and digital assets.
    • Non-Blockchain : Well-suited for real-time applications, centralized control, and situations where a trusted intermediary is acceptable/mandated.
  • Openness and Flexibility
    • Blockchain : The blockchain ecosystem isn't always that open and you don't get the flexibility to choose the tool in the tool chain. It is more a boxed offering that you can take it or leave it. 
    • Non-Blockchain : The ecosystem is largely open and you get the flexibility to replace any part of the toolchain per your changing requirements.
  • Battlefield experience
    • Blockchain : This still is a fairy tale story without solid use-cases that proves the Blockchain tech-stack promises are true in the battlefield.
    • Non-Blockchain : This is battle-tested and the community adopts relatively faster to the ever changing landscape in the technology spectrum.

Technology is fast evolving and what is right tomorrow is for tomorrow; but betting on what platform could serve us well enough tomorrow is for today. To make our bets right we will have to factor into multiple aspects and some of the ones presented above should provide a good starting point for your conversation amongst the architects and tech leadership.