A Complete Guide about Blockchain Implementation
If you have not started to experiment with the blockchain, it simply means you are behind the technology curve. Our comprehensive and step-by-step guide on blockchain implementation will help you understand the best practices to apply blockchain in your business use case.
Size of the blockchain technology market worldwide from 2016 to 2021 (in billion U.S. dollars)
Many organizations are experimenting with blockchain technology due to its potential to bring trust and transparency within any business ecosystem. PwC surveyed 600 global executives and found that 84% of organizations are getting engaged with the blockchain, while only 15% of them have a blockchain project in progress.
Steve Davies, a Global Blockchain Leader at PwC and Author of “Blockchain is Here. What’s your Next Move?”, said that blockchain projects have been stalling for various reasons. The barriers to blockchain implementation are uncertain in how blockchain will be regulated legally and how will it bring trust among a number of users.
However, Davies said that you could not sit back and wait; you should be experimenting with it as its effect is going to be intense.
Gartner also forecasted that the blockchain is going to generate over $3 trillion by 2030 in business value. It means that the one-fifth of global economic infrastructure will run on blockchain-based solutions by that time in the future.
You need the right strategy that could allow businesses to implement blockchain projects without coming to a halt.
We shall explain the step-by-step blockchain implementation strategy to overcome any uncertainties in blockchain projects.
Here’s a Step-by-Step Guide to a Blockchain Implementation Strategy
Understand what a Blockchain is
Blockchain technology allows records of information to be stored in blocks which are linked to each other via a cryptographic mechanism to build a distributed ledger. Anyone who has access can share or verify the ledger without requiring the expensive third-party verification.
Each block has a cryptographic signature that is linked to the previous block in a way that it makes the blockchain tamper-proof once all the blocks are created.
Blockchain can be permissioned, placing restrictions on what stakeholders can view and update and also, it can be permissionless, allowing anyone to view or update anything on the network.
We have explained the blockchain in brief above because we recommend you should first understand what is blockchain before you plan to implement it in your business.
If your business use case requires blockchain or not
When you decide to develop a blockchain solution, figure out what problems it can solve and if it is the way to solve them or not.
To analyze if you require a blockchain solution or not, you need to understand the entire process inside out. You need to find the bottlenecks in the current business process and once identified, try to examine how blockchain can resolve them.
Consider the following questions before you think about blockchain implementation across your business operations:
- Does your business case require data update from multiple parties?
- Do intermediaries add complexity to your business case?
- Do multiple parties exchange data?
- Do transactions interact?
- Does your use case require verification?
- Are business interactions time-sensitive?
If you answered “Yes” to four out of six questions, it represents that blockchain could be a great solution to enhance your business efficiency.
Select the right blockchain platform
Since a variety of blockchain solutions exist, you have to ensure you choose the right blockchain type for your use case.
Here is the comparison of best blockchain platforms used by companies for building blockchain based applications
Blockchain can be public, permissioned or hybrid, depending on the business use case. Once you identify the right blockchain type for your business requirements, ensure you choose the blockchain platform supporting your blockchain type.
If you are a beginner to the blockchain technology, consider consulting someone with blockchain experience, whether from your team or a blockchain development company, providing blockchain solutions.
Some of the popular blockchain platforms used by the top blockchain companies are:
- Hyperledger Sawtooth
- Hyperledger Fabric
Make sure you choose the blockchain platform carefully to build a secure and scalable blockchain solution.
Develop a Proof of Concept
A proof of concept is an approach to represent the potential of a blockchain project and it can be either a prototype or theoretical build-up. It is the initial stage of blockchain development where you demonstrate how your blockchain solution can benefit users and your business.
Here’s how can you do a proof of concept for the blockchain solution:
- Theoretical Build-up
Each project requires theoretical cases to make end-users understand the workflow and viability of the solution. Make proposals that include the crucial parameters of the project.
Once you complete the theoretical build-up and get approval from the partners involved in the project, you should look forward to creating a prototype that includes sketches, mockups, designs and information architecture.
After the proof of concept is completed successfully, the next step is to focus on designing the front-end of the application.
Visual and Technical Designs
Blockchain needs to be designed carefully, not only to solve business issues but also to integrate seamlessly with the existing solutions. Before you start preparing visual designs for the front-end of a blockchain app, ensure you consider designing for trust.
The application should be designed in a way that it builds trust among the app users. We recommend everyone to consider the technical GDPR compliance requirements to know where it should be applied.
Organizations should think about cybersecurity, compliances and privacy implications when designing screens for blockchain applications.
Developing a Blockchain App
It is the core stage of the blockchain implementation, where you connect the application’s front-end with the back-end.
In this specific step, you have to build APIs for the application. Also, you need to launch nodes on the blockchain network and make them interact with the components of the blockchain application.
Just like any other app, a blockchain app should also be developed in different versions. The first version of the app does not undergo formal testing and is said to be in a pre-alpha phase.
The application then moves to the next phase, i.e., alpha where the development team tests the software via white-box techniques and the app might not have the complete feature set at that stage.
After releasing the alpha version of an application, a beta version is prepared that includes the complete feature set but may have certain unknown bugs.
The beta version of the app is distributed to a particular group outside the organization for testing the functionalities of an application.
Once the beta receives approval, the application is prepared for the Release Candidate version, which is an advanced beta version.
Deployment of the blockchain app on Testnet and Mainnet
Deploying an app means putting the application onto an application server where it is available for everyone. However, ensure to check the functionality of a blockchain application before deploying it on the main network.
Test the application’s functionality on the testnet as the data once written to the blockchain cannot be deleted or changed.
Once it is tested, the app needs to be hosted on the main chain. For example, if you have developed an app on the public blockchain, it should be deployed and released on the main network.
We are sure you must have got an idea about how to implement blockchain across the business operations. It is recommended to go step-by-step, as mentioned above in the article for successful blockchain implementation.
We have a team of blockchain developers who can build scalable and secure blockchain solutions for any industrial use case. At LeewayHertz, we also have blockchain consultants who can provide you Free 30-minute consultation, which can help you understand the blockchain’s potential for your business. Consult us today and discuss your requirements.