One of the biggest technological controversies of the decade are blockchains. There is no debate on how brilliant the technology is. It is very clever, if not genius. The only debate is on how useful it really is. Crypto currencies like Bitcoin are a strong use-case for blockchains, but how many other real use-cases are there? Some people claim that blockchains will change the Internet for good, while others consider it as a clever solution still seeking a problem. Reality is probably somewhere in between, as it usually is.
Blockchains often appear to be more useful than they really are, because their proponents bring up uses for blockchains which could also be facilitated using other, simpler and traditional techniques. Most of those uses, which could also be attained without blockchains, are indeed better off without them. As clever as blockchains are, they always add complexity where they are deployed. In other words, I have not yet seen a single problem that could be solved by either blockchains or other technical means, and where the blockchain-based approach was the simpler one. It follows that if we want to discuss the true merits of blockchains, then we shall identify those problems that could be solved using blockchains, and which could not be solved by simpler existing technologies.Continue reading "Blockchains: useful or not?"