Blockchain Implementation is No Rocket Science: Here’s How You Can Master it!
Companies around the globe are scrambling to understand how integrating a Distributed Ledger Technology (DLT) like blockchain into their current business processes will benefit them. This is possibly due to a severe lack of general awareness about the tech, which acts as a roadblock to its evolution.
While some businesses fear that integrating a blockchain solution into their existing infrastructure will burn a hole in their pockets, others continue to pull out all the stops to evaluate which business operations are viable to be moved to the blockchain, and how to make this transition.
Simply put, for those who are interested in adopting this new technology, there comes a new challenge; and that is, how to effectively integrate and implement this tech into their existing business systems. Or, in layman’s terms, how to make this technology operational in their company.
Through this blog post, I’ll give you a detailed overview of everything you need to know about blockchain implementation and will also help you determine whether adopting this tech is the best path for your business.
Blockchain Implementation: Key Considerations
Blockchain ensures integrity as long as it is programmed correctly. In case there are any loopholes in the implementation, undesired or unsolicited outcomes are likely to befall. That’s why it’s necessary to make sure that the implementation process is being carried out precisely.
There are a plethora of factors to consider when implementing blockchain into your business strategy; meanwhile, these will get you started:
- Determine your business objective: What exactly are you trying to achieve through the implementation of blockchain? Are you aiming to reduce overhead costs, safeguard data, improve operational efficiency, enhance the security of your enterprise, or is it something in relation to making business transactions more transparent?
- Decide which business areas to focus on: Which business operations are you considering moving to blockchain first, and why? Start with the ones that take up most of your time and gradually increase the number until you’re familiar with the whole process.
For example, imagine you own a software development company in India. Having a blockchain-based database in place will help you track and ensure easy maintenance of all your company assets, including computers, tablets, phones, software, tools, and even personnel, and that too without any human intervention.
- Discover the benefits of the transition: What is your business gaining from the implementation of blockchain? An additional income from transaction fees or consensus, or a decentralized fault tolerance? The transition should be planned around meeting your business objectives and gaining the advantages defined.
- Make sure all the compliance and regulatory requirements are fulfilled: Going ahead, always develop KYC (Know Your Customer) and AML-focused (Anti-money Laundering) models that could be easily integrated into enterprise blockchain. Also, try to include concepts such as an inter-ledger, side chains, etc. in these models, but in a systematic way, so as to take advantage of blockchain’s way of processing transactions.
- Comprehend the difference between traditional and blockchain databases: Before you move further with integrating a Distributed Ledger Technology like blockchain into your business operations, it is crucial to understand how it differs from the traditional Centralized Ledger System. Once you figure that out, compare the strengths and vulnerabilities of both the databases, before selecting one. We have compared the two databases for you and have explained the differences along with an example which you’ll find later in this post. So, keep scrolling; it’s exclusively for you!
- Other requirements: You need to establish higher-level processes (make sure they are not complex, overpriced, and difficult to implement) to reap the real advantages of the blockchain ecosystem. Also, you have to ensure that the interoperability between systems is agile, secure, and have robust governance.
Blockchain Integration: How To Do It Right
So, now that you’re familiar with the key considerations for blockchain implementation, what according to you is the best approach to integrate blockchain into your business? Still not able to figure that out? Let us make that easy for you!
Here’s a 6-step guide that will get you started with the blockchain integration:
- First and foremost, connect to a blockchain network (private or public) and/or with the external contingents that are currently using blockchain for their business processes.
- Once done, integrate blockchain applications with existing technology.
- Then, find different ways of interacting with the blockchain network, in relation to security and access controls.
- Determine how you can monitor transactions and events on the blockchain and respond to them in real time.
- Figure out how you can integrate data that is present in blockchains and legacy systems.
- And lastly, automate, organize, and manage the operations that involve both existing technologies and blockchains.
Got it? Let’s move on!
As we promised, now it’s time to help you decide which of the two databases (centralized or decentralized) will be an ideal fit for your business.
So, without further ado, let’s dive right into it!
Centralized Vs. Decentralized Databases
Here’s a quick rundown depicting how each of these systems is designed and maintained.
In a conventional database, users have the authority to perform four different functions on data, which include Create, Read, Update, and Delete (also known as the CRUD commands). However, the control of the database remains with a central administrator or designated authority, which validates the credentials of a client before providing him access to the database. Here’s the biggest downside of a centralized database: anyone with sufficient access to the database can destroy, modify, or corrupt the data within it.
A centralized system entails internal and external reconciliation of data to ensure the integrity of transactions. It doesn’t provide any restrictions as far as the operations are concerned, which can be performed in the ledger. As a result, any user can modify or backdate a transaction depending on his or her personal interest or benefit. This can lead to misrepresentation of financial transactions and other fraudulent activities.
On the contrary, in a decentralized system, taking the example of blockchain to be precise, a user can only retrieve or add more data to the database. In other words, he is just allowed to perform Read and Write operations; all previous data is permanently stored, and therefore, cannot be altered or deleted. Another key facet of the blockchain database which differentiates it from its traditional counterpart is public verifiability, which is empowered by integrity and transparency. It ensures the data which is being retrieved by a user is untainted and unharmed from the moment it was created.
Why there’s a need to switch from centralized systems to decentralized ones?
Let’s demonstrate this with a simple example…
We all are familiar with the fact that banking transactions are done via a centralized system. What if the controlling entity shuts down abruptly? Result — all transactions will be terminated and it won’t be possible to process them any further. This can lead to falsification of transactions in the bank statement which can adversely affect the bank’s clientele. Moreover, if the bank workers have any intentions of forgery, then they can easily take away all the money and cause irreparable financial damage to their clients.
To avoid such transactional slip-ups and potential deceitful activities, a decentralized system like blockchain can be introduced in a company.
In such a system, the data is exactly replicated and synchronized across multiple sites to maintain data integrity, accessibility, and resiliency. Unlike a centralized system, there’s no designated authority or single point of control. So, if there’s any abrupt system failure or server crash in a particular location, the data remains safe and intact on the servers of each of the remaining locations.
All in all, it won’t be wrong saying that the decentralized database eliminates the risks posed by the centralized database, thus giving blockchain and other Distributed Ledger Technologies (DLTs) an upper hand over its fellow rivals.
Long story short, implementing blockchain is not rocket science; it’s about truly weighing the trade-offs and planning for inevitable hiccups that come along with any new technology. Blockchain implementation is a long-term engagement that requires a consistent association between the market partakers and tech leaders. It encourages individual players to carefully assess the technology implications and diligently define network and regulatory conditions.
Blockchain is on a rapid path to becoming the mainstream technology, which makes it crucial for industrialists to actively explore the benefits it offers. Pundits, tech visionaries, and experts are consistently looking for ways in which this tech can be used across a range of industries, including hospitality, healthcare, finance, construction, asset management, and more. We’ll talk more about it in our forthcoming blog posts. So, stay tuned for them!
If you’re looking for someone who could help integrate blockchain technology into your business processes, then look no further than Debut Infotech — a reputed blockchain development company based in India, with sales offices in the US and Canada. We are a bunch of tech-savvy fanatics who use blockchain to help our clients simplify their business operations. To know more about our work or services, give us a call at 1–703–537–5009 or drop a line at firstname.lastname@example.org.