There are many reasons to use a blockchain for a multitude of purposes, but the overall reason to use a distributed ledger is to remove the centralization behind the information we are storing on the network. In addition to offering decentralization, blockchains like Ethereum can offer things like Decentralized Financial services, secure online voting, supply chain information and tracking, or art that can continuously and automatically pay the artist royalties every time the art is sold.
Truly, there are many reasons to use the blockchain, and it is useful for many different situations. However, there are also many use cases that are not good for blockchain. For example, in situations where a user needs to have a private database that it can access very quickly, the user should not use a blockchain. Using a blockchain, the user’s data would be stored on every computer on the network, so it is no longer private, and it also has to be accessed across the entire network, rather than locally through the user’s client computer. This is much slower and more expensive than a centralized database, assuming that the data does not need to be sent anywhere. Essentially, if your data needs to stay with you, keep it on your own database. If your data can be shared or is intended to be seen by the masses, then it is possible that it is more efficient to use blockchain technology.
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