Are you planning to implement blockchain for your business?
NFTs, decentralized apps, cryptocurrencies, and so on, blockchain offer many benefits to businesses.
Many companies, such as Microsoft and Intel, are looking for blockchain implementation to make their business profitable in the long run.
However, blockchain implementation can be challenging due to the limited number of blockchain developers available.
Still, there is a perfect way that we will discuss to implement blockchain technology in your business correctly. Let’s check how you can add blockchain technology to your business.
Blockchain is a decentralized system of recording information, making it impossible to change or hack once the data is stored on its network.
The network contains a series of blocks, each containing several transactions. When new transactions are made on that blockchain, they are stored as a block and linked to their previous node.
Moreover, blockchain’s decentralized nature helps organizations improve their business in many ways.
Multiple blockchain benefits, such as high trustability, security, and many others, make businesses adopt blockchain technology in their architecture.
Understand in detail the benefits blockchain provides to businesses:
Centralized systems are limited to providing a high level of transparency, which is not the same as in the case of a centralized network. In a blockchain, it contains peers where validation happens through a conscious protocol. In addition, this network provides instant and transparent transactions for businesses.
Once the data is stored on the blockchain, it cannot be modified. Also, each block is encrypted and connected to the old transaction. Even more, each node has a copy of older transactions that hackers cannot change, as the nodes will refuse the hackers’ request to write transactions on their network. Thus, in this way, blockchain improves the security and trust of the system.
Tokens are digital assets that define ownership in a particular blockchain network. Moreover, many documents of physical assets like gold, equity, real estate, crude oil, legal documents, or any other physical assets can be tokenized on a blockchain network, improving its security and privacy in terms of ownership.
Also, it would be beneficial for you to be familiar with the challenges you may face while implementing blockchain.
Blockchain provides excellent control to individuals to manage their data through the help of smart contracts as no one can modify the data once it gets deployed on the blockchain network.
Since blockchain gives a better way of ownership through NFTs, anyone can tokenize their documents and data into nonfungible tokens and make them resistant to getting stolen or altered.
Now, let’s check the steps to implement blockchain technology into businesses successfully.
You need to understand why you need blockchain technology for your business. To ensure whether your business needs blockchain technology, ask the following question to yourself:
Building the proof of concept will help you understand whether this technology is essential to your business. Even better, ask these questions yourself:
Selecting the suitable blockchain platform for your business can be done successfully by analyzing your business requirement and deciding what kind of blockchain you need to implement by checking the following criteria:
However, to make your selection easier, you can choose from the following blockchain network to implement in your business:
The platform is best suitable for building smart contracts to Improve business scalability. The platform is best used for building various decentralized applications like blockchain games, exchange apps, etc.
Stellar is the next best platform for building blockchain applications for organizations. The platform partnered with IBM and KickEx in 2017 to fulfill the intent of offering low-cost transaction services in the south pacific region. Stellar is best for businesses wanting a high-performing and easy-to-use affordable blockchain platform.
Founded by the Linux Foundation and IBM, Hyperledger fabric offers a list of beneficial tools to build intelligent contracts for crypto developers. The platform provides multiple benefits to the business, such as reliable performance, plug-in components support, and smart contracts to make in various programming languages.
The platform is built on Java programming language, which makes it an excellent choice for businesses to use Nem blockchain as they can quickly train their developers for blockchain implementation.
However, the name blockchain has a less decentralized nature as compared to other blockchain networks.
Companies can use blockchain as a service to implement and leverage blockchain models and architecture from the big tech giants like:
A vice decision is to adopt technology capable of modification to meet business demands. To meet the following criteria, you can check whether blockchain technology supports multichain and multiple platforms.
Also, if you have any app, you can test it on the test network to ensure it works as expected for your business needs.
The legacy system will help your business link with your partners using traditional centralized platforms. Make sure to integrate a legacy system into your business infrastructure to ensure you won’t lose a lot of opportunities due to an inability to connect with your business partners that depend on centralized technologies.
When ready to deploy your project, build your first block, including all the decided features. Next, create your secondary block to expand your network. The primary intent of creating this block is to send information to the second block so that it can offer grounds for other blocks to receive the information.
You will have to activate your blockchain solution on the decided blockchain network at this stage. If you have opted for a hybrid solution, which is the combination of on-chain and off-chain entities, you need to start with a cloud server.
Choosing the correct protocol for your business is essential. Therefore you must know all the questions as protocol available in the blockchain and select the one that suits your business:
This protocol rewards blockchain miners after they solve tricky equations to maintain the structure of a specific blockchain
The protocol allows crypto owners to stake their coins to create their validator nodes. During the staking period, the coins are locked, making them unavailable for trading.
Voting and election-based protocol compete with proof of work and stake models to verify transactions and promote their blockchain organization.
It is a computer ability where the protocol operates if some do not fail or act maliciously. The primary intent of this protocol is to reduce the negative effect of Byzantine nodes on the network.
In this mechanism, the blockchain distributes weight among users based on how many cryptocurrencies they hold. The protocol is highly customizable and has great potential to scale.
Here’s the common use case of blockchain technology for businesses:
Transferring money using blockchain Technology is less expensive and faster than the traditional currency of different countries by eliminating the cross-border transaction fees and other limitations in the current banking system.
Having an is in transferring money benefits businesses in multiple ways. They can quickly make payments to their business partner and employee in cryptocurrencies such as Bitcoin or Ethereum to avoid all the challenges when transferring money from one country to another.
Tracking items through Logistic using blockchain Technology chain offers money advantages such as securing business data on a secure public ledger.
Next, blockchain technology offers excellent resistance to data notification, which is essential for businesses to protect themselves from hacking or getting stolen by their competitors.
Moreover, integrating blocks and technology into logistics and supply chains can help businesses to build greater trust since the data provided for inventory tracking by blockchain networks are accurate and up to date.
The most common use case of blockchain technology is deploying smart contracts. Let’s understand how you can review smart contracts while integrating blockchain technology.
Using blockchain technology for data storage offers excellent security and privacy compared to centralized data storage providers. Using decentralized cloud storage makes it almost impossible for hackers to wipe out all the data on a network.
Decentralized cloud storage offers an excellent option for companies to secure and keep their data private from anyone by implementing blockchain technology in their business.
The most common use case of blockchain technology for companies is implementing smart contracts between their business partners. Smart contracts are digital contracts stored on the blockchain network and executed when the contract has predetermined terms and conditions.
Smart contracts are safer and more secure than traditional contracts because no one can modify the digital contracts once they are stored on the blockchain network. Also, you need to follow proper guidelines and auditing methods that you must know to take advantage of your business.
No doubt about how powerful smart contracts are; however, some risk is associated with them, such as you can’t modify smart contracts once deployed to the blockchain network.
The only best solution is to review your smart contract completely before deploying it to the blockchain. You can follow the given practices while reviewing your smart contracts.
You must be ready to settle down with the limitations temporarily present in the blockchain, which undoubtedly improved over time.
Proper government regulation has not been implemented yet, which increases the chances of scams on the blockchain network. However, blockchain can’t be hacked due to its irreversible nature.
Blockchain technology is fast growing which makes no time for a government organization to introduce proper rules and regulations to blockchain technology.
Unclear regulations create challenges for many businesses as no one is sure how the government will treat blockchain technology in the future.
But many big brands like Samsung and Huawei are preparing themselves with this technology which assures us that blockchain technology will have proper government regulations.
Businesses find it hard to develop blockchain applications and struggle to implement this technology as experienced blockchain developers are rarely available in the market.
As blockchain technology is growing continuously, there is a high possibility that more blockchain developers will be available in the future.
Blockchain consuming high energy consumption is another challenge on a global level. Many blockchain platforms, such as Bitcoin, use a proof-of-work consensus algorithm that demands high computational power, which can be fulfilled by the process known as blockchain mining.
Nearly 2.0% of the total electricity is used by blockchain miners worldwide. However, other consensus algorithms, such as proof of stack and proof of weight, take less energy consumption than proof of work.
Blockchain uses a complex mechanism that makes more time to process transactions, encryption, and decryption. Since all the participants are competing on crypto coins by solving complex problems through different consensus algorithms, it becomes hard for blockchain developers to process any transaction quickly as compared to a centralized server.
The key to successfully implementing blockchain technology into your team is to create a team that works together on your business purpose. Your team must be familiar with blockchain technology before implementing it in your business.
Here’s a list of checkpoints that need to be considered before forming a blockchain team:
Skilled blockchain developers are hard to find, still here is the best way to hire a perfect candidate to implement blockchain technology in your business.
Mastering blockchain technology is hard as it needs more working experience to get the proficiency to implement blockchain technology.
Also, you may find it hard to train new employees to work in the role of blockchain developer, which may take years and is unsuitable for your business as your competitor can take this opportunity to get ahead of you.
The best thing you can do is to hire experienced blockchain developers for your team that can help you quickly with blockchain implementation in your business.
You can contact Idea Usher, as their team has experienced blockchain developers who have already worked on many decentralized projects related to smart contracts, NFTs, dApps, etc.
Contact Idea Usher:
These are a few challenges of blockchain implementation:
The duration of the blockchain project depends on the requirement of the application. The higher the number of features required, the more time it will take to implement blockchain technology.
The concept of decentralization makes it nearly impossible to hack blockchain technology. In addition, due to the irreversible nature of blockchain, no one can modify the nodes once stored on the blockchain network.
Idea Usher is a pioneering IT company with a definite set of services and solutions. We aim at providing impeccable services to our clients and establishing a reliable relationship.