A few years ago if you had asked around about blockchain technology, you would have received varied answers. One half would have told you how they have little to no idea about what blockchain is, the other half would have told you that it’s too good to be true to be implemented in real life. Today, if you ask the same people the same question, you would be pleasantly surprised at the clear change in their answers.
Everyone knows blockchain technology, everyone wants to implement it. Blockchain is no longer the pipe dream of a few technology and crypto enthusiasts.
Businesses that have long grappled with the issues of customer privacy, among others, are head-over-heels to find the solutions to these problems in the form of what is said to be one of the most prominent innovations of the decade. But still, implementation of blockchain technology in their business remains an unfamiliar territory.
Luckily, today there are numerous ways in which you can implement this technology in your business. In this blog, we talk about ways in which you can implement your own custom blockchain network for your business, in the simplest and most efficient ways.
Implement Blockchain in your Business.
Because blockchain is a disruptive technology, enterprise customers need to be aware of its special strengths as well as the challenges and requirements associated with its implementation. Implementing blockchain requires a lifetime commitment, but it is worthwhile.
To implement blockchain, you must take the following actions:
1. Develop the use-case
Finding out what problems you are seeking to address and whether blockchain is the means to tackle them is essential for designing any blockchain solution.
You must first and foremost be well familiar with the procedure. You first identify the process’s blockages, and once you have done so, the blockchain solution should be compared to all other available options.
There are a few recommended questions that need to be considered by enterprises before implementing blockchain technology in their business. Some of these questions are as follows:
- Is the business application’s goal clear to you?
- Do multiple stakeholders exchange data?
- Do the parties update the data regularly?
- Is verification necessary?
- How does blockchain improve customer service or cut costs?
- Do middlemen increase complexity?
The answer to these questions will guide the enterprise into understanding what its requirements and business case are.
2. Creating a Proof of Concept (PoC)
The blockchain’s revolutionary Proof of Concept (PoC) approach checks how well real-world blockchain applications are used in practice. PoC evaluates whether a project is practical and able to complete a task. Creating a solid PoC will naturally lead to automation and streamlining intermediary and repeated actions.
Today, numerous sectors use blockchain in their everyday work and rely on PoCs for best performance. You can develop your Proof of Concept by following the evaluation and planning phases. The stages to developing a Proof of Concept are listed below:
- Create a set of guidelines to describe the business plan.
- Make a prototype using design, coding, and sketching.
- Test the prototype to gain an understanding of business developments.
- Examine the MVP to include the best elements.
3. Choosing the blockchain platform carefully
Organizations and businesses form the incorrect belief when given the option of choosing blockchain. Enterprise users frequently believe that blockchain is the all-encompassing solution to their problems. Yes, blockchain has the unstoppable potential to revolutionise the way businesses run. However, it is crucial to carefully consider a blockchain platform before making any decision.
When selecting a blockchain network, take into account the following actions:
- Analyze whether blockchain technology is a good fit for the business’s challenges.
- Pick a strategy for integrating blockchain.
- Consider some existing solutions, no matter how difficult they may sound.
Each popular blockchain platform has its own advantages and disadvantages. Businesses should make sure their technical staff is organised and has an open-source station before choosing a blockchain platform. Your budget should be accommodated by the platform. For both governments and businesses, the journey from a fruitful proof of concept to extensive implementation is difficult.
Businesses that conduct appropriate research can learn how to avoid being duped by marketing strategies.
4. Initializing the blockchain
The first block of the blockchain must be manually curated in order for the blockchain to be initialised. Keep in mind that the block should include every element of the specified chain. The features are then distributed among network nodes. Additionally, a file in JSON format is created to define the block. Numerous elements, including Nonce (abbreviation for ‘number only used once’) and Timestamp, need to be precise. Businesses could build folders that contain blockchain and the initialization once the JSON file has been further filled out.
5. Choosing the right consensus protocol
The consensus protocol by itself can establish an unchallengeable system of agreement between the devices in a distributed network. The blockchain allows the first member of the network to produce the answer to write the following block. Additionally, this enables routine writing of the blocks. The consensus process also guards against hacking and spam attacks.
Additionally, the consensus protocols play a significant role in forging irrefutable agreements among the components of a comprehensively distributed network. Essential consensus protocols include the following:
- Proof-of-Stake (PoS)
- Proof-of-Work (PoW)
- Proof-of-Weight (PoW)
- Byzantine Fault Tolerance (BFT)
- Delegated Proof-of-Stake (DPOS)
6. Designing Deliberately
Blockchain architecture demands meticulous curation. The only goal of integrating blockchain technology into business is to enable it to address any problem that may arise in any organisation, regardless of its size. Additionally, blockchain must get along with the established procedures. It would be necessary to conduct more analysis on a blockchain that is incredibly powerful but unable to satisfy the conditions and elements. Additionally, the examination would choose the fundamental framework for blockchain implementation.
7. Navigating Uncertainty
Blockchain technology has existed since the 1980s. However, before the introduction of Bitcoin, the technology never really gained traction. Blockchain is subject to a number of rules because it is essentially connected to cryptocurrencies.
In the near future, regulatory practices will change. Organizations must keep track of the regulatory framework’s constant change because of the regulations. Blockchain would need to be shaped by organisations as well. For integrating blockchain, different nations have different rules and procedures.
Businesses and organisations must cooperate with regulators. The partnership will help to improve how blockchain is used all around.
To study and understand the implementation of blockchain in various sectors, it is imperative to explore a few use cases. Let’s take a look at a few of those:
The banking industry is the most prominent example of a blockchain application.
There are frequent security flaws in online banking systems. High security is one of the most noticeable features of blockchain technology, hence its adoption was a logical substitute for these systems.
Because of this, several institutions have been practically compelled to use blockchain technology in order to keep customers’ trust.
Data openness is crucial for every insurance company. The use of blockchain technology helps to make the interchange of this data more efficient and transparent.
Smart contracts are used to carry out this. It confirms the accuracy of the contract terms and evaluates if a specific event or circumstance is covered by the conditions of the specific smart contract.
As a result, the consumer swiftly receives the claimed amount based on merit. Records are then kept up to date and maintained quickly.
It’s crucial to keep in mind that the healthcare sector necessitates rigorous record keeping. Furthermore, the security of these health records is crucial since they may contain sensitive information. Therefore, one must place a lot of emphasis on pharmaceuticals if one wants to utilise blockchain in the healthcare supply chain.
While efficiently meeting these needs, blockchain technology also offers the chance to include online payment mechanisms.
As a result, insurance claims can be processed more quickly for hospitals and other healthcare organisations. Many pharmaceutical companies have already made financial investments to use blockchain in the supply chain.
Challenges and Limitations
There are a few challenges businesses could face while implementing blockchain. Some of them are as follows:
1. A challenging user interface:
Not all of the clients businesses work with may be adept with technology. If your method is straightforward, you can draw in the most clients.
2. A lack of knowledgeable blockchain developers:
Blockchain developers with the necessary skills are in short supply in the industry. Smaller companies might need to provide aggressive incentives to draw in and keep blockchain professionals.
3. Different blockchain laws:
The laws are frequently changed. The difficult part is figuring out how to take the impact of regulations into account and incorporate them into organisational actions.
Despite these difficulties, the circumstances for implementation are good. In order to solve these difficulties, more study is being done. As more blockchain pioneers, blockchain developers, and business titans express interest in the technology, perspectives toward its application are getting increasingly complex. The majority of businesses have set aside money for blockchain. Blockchain implementation from scratch is challenging yet doable in several use cases.
It all comes down to assembling the best team possible for blockchain development. It takes the proper team to advance the organization’s mission. Even though it may seem like a somewhat more expensive investment, a skilled development team will save time and money by significantly lowering the risks. At Yodaplus, we have the best team of blockchain developers and blockchain solution architects who can guide you through the process starting from consultation to design and implementation to the final ready-to-use product.
Blockchain did not merely revolutionise the world of digital currency. It is revolutionising web technology and the digital space with breakneck speed. Blockchain will continue to exist because it can solve challenging problems in a way that is timely, efficient, and cost-effective. In the future, there will be an increasing tendency toward widespread adoption and deployment. And everyone will be able to take a bite of that fruit