Blockchain Use Cases

Understand the limitations of blockchain technology and determine the appropriate usage scenarios.

Blockchain technology is a distributed, secure, digital ledger system that can store, track, and manage data securely and transparently. However, it’s important to note that even though blockchain technology has a great deal of potential, it is not a panacea for all problems. While blockchain has many advantages, it’s important to understand its limitations before deciding whether it is the right choice for your application.

There are certain scenarios where blockchain technology is not ideal:

  • When speed is required: The reason for this is that the consensus mechanism used in blockchain technology requires each node in the network to verify each transaction before it's added to the blockchain. This process is slow and would not be suitable for applications that require fast response times.

  • When the data is too large: The basic structure of a blockchain is a chain of blocks, each of which contains a certain amount of data. The problem is that the size of each block is limited, and if the dataset is too large, it will not fit in a single block.

  • When data updates are required: Blockchain is not suitable for applications that require frequent updates or changes. The structure of the blockchain means that once a transaction is added to the blockchain, it cannot be changed or removed.

  • When there is no need for trust: In some cases, there is no need to build trust between parties, making the use of a blockchain unnecessary.

A blockchain infrastructure fits very well when there is a need for a secure, robust, and immutable ledger of digital transactions among heterogeneous parties where the control is completely decentralized. The blockchain realizes and ensures trust among parties at the technological level, simplifying interoperability scenarios.

Full decentralization is achieved by public blockchains, but they are not the best choice if transaction privacy is of the utmost importance. All transactions are public, traceable, and visible to everyone. If privacy is required, decentralization must be sacrificed, and private blockchains should be used.

Understanding the different use cases for this technology will help businesses and individuals make informed decisions when considering blockchain solutions in various scenarios.


DeFi, or Decentralized Finance, is an emerging financial system built on top of blockchain technology. It offers an alternative to traditional financial services, allowing people to access a range of financial products and services without the need for banks or other centralized institutions.

Payment transactions are the foundational use case for the DeFi ecosystem. Blockchain technology is natively designed with P2P payments in mind, where users can exchange cryptocurrency securely and directly with one another without middlemen. 

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