Asia Franchise Magazine: Franchising- The Use of Blockchain Technology
Anndy Lian wrote an article titled Franchising- The use of Blockchain Technology on Asia Franchise Magazine, April- June 2021 edition. This magazine is a bilingual magazine started by Albert Kong, Editor in Chief and veteran in the Franchising industry.
In this article, Anndy covered basic topics from what is blockchain and cryptocurrency to how companies can use this technology to help with their brand loyalty, payment and fundraising process. He went on to give a regulatory overview of cryptocurrencies
Lastly, Lian gave his advice on how to evaluate the need for blockchain for your business.
Evaluate the need for blockchain for your business
In the near future, you may receive many tempting grants for blockchain adoption. Consultants will often sell with a generic concept and a long list of alleged benefits.
But looking at the business environment, the first database-related question you need to ask yourself is “Do you need to store state?” If your answer is no, then you do not need to implement blockchain. If your answer is yes, then the second question you need to ask is “Are there multiple participants?” If your answer is no again, then you do not need blockchain.
Assuming, you need multiple participants, then the third question would be “Can you use an always online trusted third party?” And this time round, if your answer is no, then there is no need to use blockchain. If your answer is no, then there is a need to look at what kind of blockchain suits your environment.
“Are all the participants known?” is the next question you need to ask yourself. If the participants are not known, then you should consider permissionless blockchain. Permissionless blockchains are blockchains that require no permission to join and interact with. They are also known as public blockchains.
Most of the time, permissionless blockchain is ideal for running and managing digital currencies. If the participants are known, naturally you need to ask if all the participants are trusted. If they are all trusted, then blockchain is not needed.
Again, if the participants are not trusted and there is no need to have the public to verify, you should choose private permissioned blockchain. A private blockchain allows only selected entry of verified participants; the operator has the rights to override, edit, or delete the necessary entries on the blockchain.
A permissioned blockchain has properties of both private and public blockchains. If there is a need for the public to verify, then you should consider public permissioned blockchain.
A trusted consultant or company should walk through the process with your company and answer your doubts. The golden rule for companies is not to rush when you make any technology decision. This same theory works the same for the adoption of blockchain technology.
“Innovate your business with blockchain.
You will love the surprises that come with it.”- Anndy Lian
You can read this issue at https://www.asiawidefranchise.com.sg/publications/. Alternatively, you can download it at this link.
