People are resorting to blockchain for all kinds of reasons these days. Ever since I started doing smart contract security audits in mid-2017, I’ve seen it all. A special category of cases is ‘blockchain use’ that seems logical and beneficial, but actually contains a problem that then spreads from one startup to another. I am going to give some examples of such problems and ineffective solutions so that you (developer/customer/investor) know what to do when somebody offers you to use blockchain this way.
- The described use cases and problems occur at the initial stage. I am not saying these problems are impossible to solve. However, it is important to understand which solutions system creators offer for particular problems.
- Even though the term ‘blockchain use’ looks strange and I am not sure that blockchain can be used for anything other than money (Bitcoin), I am going to use it without quotes.
1. Supply chain management
Let’s say you ordered some goods, and a carrier guarantees to maintain certain transportation conditions, such as keeping your goods cold. A proposed solution is to install a sensor in a truck that will monitor fridge temperature and regularly transmit the data to the blockchain. This way, you can make sure that the promised conditions are met along the entire route.