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Blockchain Moves from Buzzword to Reality: Is Your Business Up for it?

Ever since it was introduced to the world around a decade ago by Satoshi Nakamoto, blockchain has been touted as the be-all and end-all solution to every business problem one could possibly have. But do you really think it is worth incorporating into your business strategy? If you’re still unsure about its potential and want to know whether it’s the right technology for your business, then this blog post is for you.

Here’s a four-step roadmap to help you get started:

  • First, learn the basics of blockchain and figure out why this technology might be better suited for your business.
  • Second, ask yourself a few questions: Where is my company headed and how adopting blockchain will save me money? Will it bring in more customers? Will it help me save auditing costs? How will it add value to my company? How can I use this technology to improve data transfer, security, and transparency? Once you’ve answered these questions, move further to the next step.
  • Third, allocate a budget for Blockchain research & development, experimentation, and implementation.
  • And last, spend the money wisely. There’s a misconception among business owners that to thrive in the era of blockchain, they need to hire blockchain developers with conceptual and intuitive knowledge of the technology. Sadly, that’s not the case. Instead, it’s best to find a service that can hide the blockchain complexities and help you understand blockchain use cases, which will perfectly suit your business, through a graphical user interface.

Remember, every new technology comes with new challenges as well as opportunities, and blockchain is no exception.

The Hype is Real: Get Ready for the Revolution

Initially designed to support cryptocurrencies such as Bitcoin, Litecoin, Ripple, and more, blockchain technology has proven to be revolutionary because of its other potential uses and applications. Whether you aim to improve client retention, boost sales, strengthen your customer base, cut down the cost of business operations, or streamline your corporate processes, blockchain can help you do it all, and that too, with minimum fuss and maximum efficiency.

Simply put, blockchain is not just about cryptocurrencies, it’s much beyond that. Today, it is used in almost every industry, including banking, supply chain, real estate, hospitality, healthcare, education, media, finance, telecom, and more.

Over the past year or so, blockchain, a Distributed Ledger Technology (DLT), has gained a ton of traction and has become the talk of the town. It comes with a plethora of potential benefits that can help organizations mitigate, or in some cases, eradicate risks posed by current systems.

Merits and Demerits of Blockchain Technology

What makes blockchain so reliable and unique is its incorruptible algorithm, which is secured by math rather than trust. And, with its decentralized nature, it eliminates the need for a “middleman” or “intermediary” to facilitate transactions, thus reducing the possibility of fraud and third-party manipulation. As a result, there are no counterparty risks involved. In its place, it uses a consensus mechanism to agree on the legality of transactions.

Thanks to its distributed ledger structure, transaction histories are crystal clear, and data is more accurate, consistent, timely, and easily available. Another key benefit of blockchain technology is that any modifications made to the public ledger can be viewed by all parties, which enhances transparency. Because of its fault tolerance capability, the technology can withstand the emergence of bad players in the organization without compromising the security of the network.

For all the hype, you need to understand that just like any other new technology, blockchain has its critics. It needs time to become accepted and trusted by the general public. Although it is better than those traditional systems that we’ve been using for decades, it has its fair share of shortcomings that cannot be overlooked.

It requires more than just developers to run smoothly. It may require the complete replacement of your current system to make the switch to blockchain. It involves a pretty hefty investment and isn’t a good fit for every organization. Moreover, it requires a large amount of computing power to verify and validate each transaction. As the technology gets popular with time, there can be problems related to speed, verification, and data limits.

Is it the Right Fit for Your Business?

Although new use cases for Blockchain are pioneered every day, it is critical to figure out whether these solutions can address your present-day needs. Here are a few questions that you must ask yourself before investing in blockchain technology. It will help you make a quick initial assessment of whether blockchain is the right solution to the problem you’re facing.

Question #1: Am I trying to remove intermediaries or middlemen?

Simplifying a transaction is the first hurdle to justifying a blockchain implementation, as said by Richard Lobovsky, Vice President of Enterprise Solutions at Samsung SDSA. Why would you need an intermediate or agent when you can communicate directly with your end users via blockchain? So, if you’re aiming to remove middlemen from the picture, then you must invest in this tech right away.

Question #2: Do I really need to rely on a trusted party (for compliance or liability)?

Well, if you’re concerned about trusting third parties to validate your transactions, here’s a good news — you don’t have to do that any longer. Blockchain eliminates third parties not only while executing transactions but also while confirming them. In other words, blockchain transactions are immutable, which means they cannot be refuted.

Question #3: Do I require high performance, rapid (millisecond) transactions?

At present, blockchain implementations can process 150,000 to 200,000 bytes per transaction. However, the numbers can vary significantly. A typical blockchain is limited to 15k bytes per transaction (approx.). Hence, it can be stated that blockchain may not be a viable solution for industries that demand immediacy and high-speed transactions, for example, trading.

Apart from these, there are a myriad of other questions that you may consider asking yourself, for example, “Am I using digital assets or physical ones? Do I intend to store large amounts of non-transactional data as part of my solution? Am I managing contractual relationships or value exchange? And so on… If your answer to these questions is YES, then you should opt for blockchain without any second thought!

Conclusion

Blockchain, without a doubt, is an innovative solution, but it’s not the solution to all problems. The ecosystem is still young. There’s so much more that needs to be developed and evolved. Even though the technology is speculated, it has a great potential. The tech is getting better with each passing day, and there are solutions evolving at a rapid pace which can help you overcome all the above-mentioned problems.

However, the biggest concern remains; considering the fact that blockchain is decentralized; that is to say, all the nodes in the Blockchain network need to agree on whether or not a particular transaction is valid. Frankly speaking, it’s a far slower process than having a bank verify the transaction in the first place. A single company can’t just invest in a supercomputer and expect Blockchain to work faster. A speed boost would require gazillion of people to upgrade their software, which isn’t economically feasible at present.

It’s true that blockchain might not fit situations that demand high speed, but it is still a great fit for organizations that want to execute real-time transactions on a large scale. It helps businesses maximize on volume as it can store an enormous amount of data with each transaction (somewhere around 2 megabytes per transaction). Having said that, before introducing it into a specific business model, it is crucial for every organization to understand what the technology is actually capable of, beyond the hype.

Blockchain, the technology for tomorrow, is here to stay; embrace it or be left behind!

If you’re looking forward to hiring a top-rated blockchain development company in India, then look no further than Debut Infotech. For a free consultation or to know more about our services, give us a call at 1–703–537–5009 or drop us a line @ info@debutinfotech.com

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A full-service digital product development company that leverages Blockchain, AI, and other cutting-edge technologies to develop world-class solutions.

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Harpreet Singh

Harpreet Singh

A pioneer in Mobile, Blockchain, Managed Services, Oracle, and AI/ML Development

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