A Financial Evaluation Framework for Blockchain Implementations

Blockchain technology is at its hype. Organizations are trying to implement blockchain based solutions. At least, they are thinking of blockchain as a solution platform for some of their business problems. There are some problems that find solution very effectively on blockchain, such as cryptocurrencies. But most other problems have alternative solution. Majority of these problems are currently solved by using other technologies. Blockchain in most cases seems to provide a different solution with added benefits. In that case, does it worth to use blockchain? Do companies benefit enough form using blockchain? Does blockchain technology help companies to save on costs? This paper introduces a framework to help organizations evaluate the blockchain implementations financially. Each organization has its own criteria and conditions. Therefore, each evaluation is to be done by the organization on its own project with its own criteria. Without a framework, evaluating a blockchain implementation is a difficult task with the risk of ignoring major factors. Our novel contribution is a detailed framework to follow while evaluating the financial soundness of blockchain solutions.