It’s no longer only the big guys that implement blockchain technology into businesses; SMEs and startups are doing it as well. It’s helpful, no doubt, but why is it? How should we do it to prevent faults? Let’s read this article and find out.
Why should you implement blockchain in your business?
In general, compared to conventional databases, blockchain technology offers more security and reduced expenses. Public blockchains allow anybody to join the network, while private blockchains only allow approved users to take part.
According to Eric Piscini, principal of financial services technology at Deloitte, “the major contrast between a database and blockchain is that a database is managed and controlled by someone.” Since a blockchain doesn’t have to be overseen by any central authority, there’s no need to put your faith in any one entity to handle transactions. It’s governed simultaneously by all of its participants. This changes the way businesses operate.”
One day, blockchains may pave the way for decentralized, peer-to-peer networks that facilitate the issuance and transfer of currency and other assets without the need for a central authority. This technology, for instance, might be used to construct a network comparable to Airbnb but independent of the Airbnb corporation itself. Or, when integrated with the IoT, it might produce an Uber-like software that operates independently of the original.
How To Implement Blockchain To Strengthen Your Business?
You should not think of blockchain as if it were some sort of strange or dangerous new technology; instead, view it as nothing more than a cutting-edge piece of software. When executed well, there are numerous upsides to the business. However, it is advised to take it slowly as it may result in failure if you do not do it right. If you want to implement blockchain successfully, follow these guidelines.
1. Learning & Educating employees
To properly implement blockchain technology, knowing why you should make use of it is crucial. Make sure everyone in your company is familiar with blockchain technology. They should know the basics of Blockchain due to its primary features, including:
- Cannot be forged and cannot be deleted: The blockchain chain can only be entirely destroyed when there is no internet everywhere in the world, and only quantum computers have the capability of interfering with and decoding the chain.
- Can not be altered: Data that has been recorded by the owner of the Private Key (a coded secret known only to those with access to the blockchain) cannot be changed after it has been saved.
- Information and data on blockchain chains are scattered and safe.
- Transparency: anyone may see the history of an address on the blockchain and run statistical research on it.
- Smart contracts.
Then, look over the latest case studies, and business applications in your industry to have a good reference and some pre-experiences before jumping into.
After knowing where you potentially implement blockchain technology in your industry, you can embark on developing a Proof of Concept (PoC) for your own firm. The strategic and operational plans will shed light on the duration and resources needed for those next following steps. In this phase, you should:
- Look for the chance for business transformation.
- Find out if using a blockchain is the best option.
- Markets, customers, the organization, business processes, and suppliers are all areas that can be impacted by this plan
- Choose a high-impact use case for blockchain implementation.
- Calculate the benefits and major expenses.
- The return on investment must be modeled.
Also, make sure that the blockchain transformation’s business case is clear to key stakeholders. After that, you should test out a proof of concept (PoC) in your company to see if it will yield the desired results and yield any useful insights.
3. Choosing the suitable blockchain model
3.1 Model type: Should information be made public or kept confidential?
There are two blockchain models: Private or Public
- A public blockchain is an open, permissionless network that anybody can join. The public blockchain is available to everyone with Internet access. You can decide to verify all system-wide transactions as one of the characteristics of such a system. Many public blockchain ecosystems offer incentives to miners and other participants who help ensure the integrity of the ledger. Bitcoin’s blockchain is an example of a public blockchain in use.
- A private blockchain, on the other hand, can function autonomously or in tandem with other systems. Enterprises and other types of organizations frequently employ this usage scenario. To this end, private chains necessitate a higher standard of confidence among their members than public ones.
3.2 Blockchain platform
There isn’t a universal blockchain solution. For your company, it’s crucial to zero in on the option that meets your requirements the best. Ethereum, Quorum, Hyperledger Fabric, Corda, Stella, and Open Chain are just some of the popular platforms out there.
The following criteria will help you to decide more easily:
- How many people will utilize it?
- How much discretion is needed?
- In what scenario should it be used?
- Is network centralization necessary, or can it be done without any central authority?
4. Testing it and analyze the results
Making your own coinage that can be used for fast data transfers is crucial to the growth of blockchain technology.
Once the first block is generated for a blockchain, subsequent blocks are generated and organized automatically. Everything about the circuit needs to be contained in this one box. After that, all nodes (or users) on the network will have access to the blocks. Making a JSON file is the first step in developing a chain node.
The “nonce” (a typical cryptographic hash that provides a random value), “time tag” (the testing time between two consecutive blocks), and other parameters must be specified. After completing the JSON file, the entire process is dependent on the Geth client. Make a new folder and populate it with a chain’s data (chain data).
When testing, your end goal should be to make changes when needed. Therefore, you should adopt a procedure for updating the blockchain (i.e., core chain code updates) and keep up the process of eliminating middlemen.
5. Developing an ecosystem
5.1 Proper consensus method
Before developing an ecosystem, you must first construct a consensus method. There are various types of consensus methods that you can choose from. Yet, selecting the right framework is essential, it is the ground that your house shall be built on. Some potential ones are:
- Proof of Stake
- Proof of Work
- Proof of Weight
- Byzantine Fault Tolerance (BFT)
5.2 Establish an ecosystem
The ecosystem, or blockchain community, is extremely critical in the blockchain industry. It’s just like traditional companies, where stakeholder participation is crucial for any firm to succeed. This can be done by settling on a set of guidelines for how to conduct the work together, how to divide up responsibilities, and how to make decisions on how to allocate resources.
I recommend starting with a small ecosystem with a limited number of participants because they can see the possibilities of the technology and work to better regulate it.
Then, join a blockchain community to expand your professional circle and learn about the many uses of blockchain technology. You should examine the prospective alliances or competitors within that community as well.
Although it appears difficult, it is feasible. The proof is that many SMEs have beautifully implemented blockchain and are reaping enormous benefits from it. If you are still looking for the best blockchain technology to use, Satom can assist you. We help founders in metaverse/Web3 applications build successful businesses with our integrated services. To learn more, please contact us at firstname.lastname@example.org.