Where and How Blockchain can be a better option than the traditional centralized systems? — A straightforward answer for a very common question by Andre Boaventura


After having written this article explaining a variety of consensus mechanisms for Blockchain available today, I have received hundreds of comments and positive feedback from those were struggling to understand what makes cryptocurrencies and blockchain securely working in a decentralized way, after having reading my article and thus have clearly understood the foundation supporting Blockchain implementations (thanks for all my readers by the way).

However, there are others that are still struggling to understand the benefits of a blockchain vs a traditional model based system, and where blockchain can be really a “breakthrough” when compared to what can be done and achieved by leveraging a centralized system model.

Among dozens of mails I have received regarding the same sort of questions, that is, where Blockchain can be better than those traditional systems that we have been using for decades, I have decided to share one of my answers to one of these colleagues, since I have noticed that this could benefit others that eventually could be questioning themselves about the same topic.

The Question

So, here is a sample question related to this concern mentioned above that I received from a colleague from the UK.

Hi Andre

I’ve read your comprehensive article and thanks for it being most useful and informative. I confess I may need to read it a second time to get a proper understanding of the intricate details and the “Proof of . . .” mechanisms and their pros and cons, but I think I understand the principle of Consensus Mechanisms.

My fundamental question (and the reason for this reply to you) is “what are the real-world applications of a blockchain, and (playing devil’s advocate, if you’ll forgive me, why is it any more than an interesting computer science project?”.

I can easily see its application to virtual currencies like Bitcoin (whose critics would decry it as no more than a baseless speculation mechanism), but I’m struggling to imagine real-world examples of why I’d need a blockchain, or why it’s better, in some way or other, than what already exists. Read the complete article here.


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About Jürgen Kress
As a middleware expert Jürgen works at Oracle EMEA Alliances and Channels, responsible for Oracle’s EMEA Fusion Middleware partner business. He is the founder of the Oracle SOA & BPM and the WebLogic Partner Communities and the global Oracle Partner Advisory Councils. With more than 5000 members from all over the world the Middleware Partner Community is the most successful and active community at Oracle. Jürgen manages the community with monthly newsletters, webcasts and conferences. He hosts his annual Fusion Middleware Partner Community Forums and the Fusion Middleware Summer Camps, where more than 200 partners get product updates, roadmap insights and hands-on trainings. Supplemented by many web 2.0 tools like twitter, discussion forums, online communities, blogs and wikis. For the SOA & Cloud Symposium by Thomas Erl, Jürgen is a member of the steering board. He is also a frequent speaker at conferences like the SOA & BPM Integration Days, JAX, UKOUG, OUGN, or OOP.

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