What Blockchain can do and What it can’t do?

what blockchain can do and can't do

Blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a timestamp and transaction data. By design, a blockchain is inherently resistant to modification of the data.

Simply speaking, Blockchain helps in decentralizing the ledger or data or database with the help of cryptography. The blockchain is also called as distributed ledger technology. Some of the famous blockchains are Bitcoin blockchain, Ethereum, Bitcoin Cash, Litecoin etc.

In this post, you will learn different aspects related to what Blockchain can do and what it can not do. On the lighter note, the following represents the fact that Blockchain can’t do everything.

What blockchain can do and can't do

Figure 1. No one can do everything

Blockchain is just another technology; It can’t do everything

  • Not every problem can be solved using Blockchain technology
  • The blockchain is a yet another technology (distributed ledger) like any other technologies. It should be applied only where it is suitable and appropriate.
  • It is not mandatory for a Blockchain to support a cryptocurrency

What Blockchain can do?

Blockchain can help solve problems related to some of the following:

  • Need for enhanced trust between different parties involved in the business without involving a traditional intermediary
    • Transactions across international boundaries such as climate change records
    • Supply chain management
  • Transaction data immutability
    • Financial transactions
    • Health care records
  • Transaction data integrity
    • Financial transactions
    • Healthcare records
  • Greater transparency
    • Mini-grid/micro-grid energy buying and selling
  • Need for provenance (traceability)
    • Real estate: One would easily want to find out the past records of who all bought and sold any particular property.
    • Employment history: One would easily want to find out the employment history of an individual
    • Supply chain management

Learning for Entrepreneurs (startups)

  • Check whether the problem you are trying to solve has a need to enhance some of the following:
    • Trust by decentralizing the trust
    • Transparency
    • Traceability
    • Data immutability and integrity
  • Think through whether you really want to introduce your cryptocurrency


Did you find this article useful? Do you have any questions or suggestions about this article or understanding key aspects of What Blockchain can do and can’t do? Leave a comment and ask your questions and I shall do my best to address your queries.

Ajitesh Kumar
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Ajitesh Kumar

I have been recently working in the area of Data analytics including Data Science and Machine Learning / Deep Learning. I am also passionate about different technologies including programming languages such as Java/JEE, Javascript, Python, R, Julia, etc, and technologies such as Blockchain, mobile computing, cloud-native technologies, application security, cloud computing platforms, big data, etc. For latest updates and blogs, follow us on Twitter. I would love to connect with you on Linkedin. Check out my latest book titled as First Principles Thinking: Building winning products using first principles thinking. Check out my other blog, Revive-n-Thrive.com
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