6th April, 2021
A plenty of organizations are concentrating on blockchain as this technology holds an array of potential to solve a variety of issues occurring daily in the functioning of finance. While some have already put blockchain up and running, there are others still stalling in the phase of research.
Research conducted by PwC found 84% of companies are involved in blockchain technology; however, only 15% have a live project that is underway. One of the major issues in the adoption of blockchain is the uncertainty in how the technology is regulated. And then, the lack of trust among users in blockchain always poses some of the other interruptions.
However, despite all the major issues, you cannot afford to give up and sit back. Experimenting has to be done. Moreover, if Gartner forecasts are to be believed, by 2030, blockchain may generate more than $3 trillion. This means that a fifth of global economic infrastructure may run completely on a blockchain-based system.
So, with the right mindset and adequate steps, the implementation of blockchain should not be a tough task. In this post, let’s find a few simple steps that may help you in this scenario.
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The first step is to comprehend the use case. The key here is to develop a blockchain-based system that figures out the precise issues you are trying to solve. Comprehending the process completely and understanding the bottlenecks in the entire process is quite important.
Here, discovering a use case means discovering a process that offers identification and clarification to the organization as per the needs. This will help add clarity to objectives. You must start by taking a small step; so begin with a pilot use case.
Try exploring, testing, using and evaluating the process before implementing the same on a larger scale. Here are a few questions that you must answer:
Is the data being shared by different parties?
Can various parties update data?
Is the verification needed?
Does it pose any issues while adding intermediaries?
Is there any interaction happening between transactions?
If you can find a positive answer to any of these questions, the blockchain would be the correct solution for you.
Once you are done overviewing the ways wherein blockchain implementation can give advantages to your business, you can move forward to developing a Proof of Concept (POC). Here, you will have to implement your blockchain in any of the programming languages, such as Java and more.
For those who are unaware, POC is a process that helps comprehend the feasibility and potential of the project for the business. The beginning of POC happens just like any other business - that is - with significant planning. The process will begin with questions related to the project.
These questions must revolve around your business’s nature and its objectives. It may also have questions related to the target market, especially if it is a niche market. Once questions have been answered, you will be ready to put the basic foundation of the blockchain POC. generally, you must have a good grasp of the directions. This will prevent unwanted issues during the development process.
Here are a few steps that you will have to follow:
Theoretical building: Here, you will have to create guidelines explaining the project’s parameters.
Prototype: It will comprise mockups, design, architecture, sketches, and codes.
MVP: Known as the Minimum Viable Product, it is referred to as the minimum set of features.
Considering that there is no one type of blockchain but a range of solutions existing out there, you will have to make sure that you are choosing the perfect type for your objective.
Avoid being a victim to the hype as you may end up selecting the wrong system or assessing the technology without completely comprehending its advantages. The types of blockchain majorly differ on the basis of whether they are quasi-private, private or public.
Also, blockchains can even be permissioned or permissionless, centralised or decentralised. The blockchain type that you may require will be entirely case-dependent.
For instance, if your objectives are financial and security regulations, you may require permission for, centralised blockchain.
For the initialization of the blockchain, the first block has to be generated manually. This block must carry all of the features of the chain. And then, they are shared among different network nodes. In JSON format, a file gets created that defines the block.
Different parameters, like Timestamp and Nonce, must be specified. Once the JSON file has been filled, the client Geth is then responsible to create the folder that comprises blockchain and initializes the same.
The protocol simply means resolving a maths problem that needs a huge calculation. Whenever a miner offers a solution, it must get verified by everybody. The first person to find the solution gets to write the next block.
For the problem, the level of difficulty is adjusted in real-time, on the basis of the total power of a network. Such blocks get written periodically. This system, then, protects against spam and hacking attempts. You have a variety of consensus protocols to choose from, such as:
Delegated Proof-of-Stake (DPOS)
Byzantine Fault Tolerance (BFT)
Blockchain must be designed cautiously as it does not just help solve the issues arising in an organization but also makes sure that the technology fits well with the existing process. If this doesn't seem to be the case, the existing processes will have to be revised to lay the foundation of blockchain.
Also, while choosing the technology or implementing blockchain, you must also think about a variety of other implications, such as compliance, cybersecurity, privacy and more.
Blockchain is, still, considerably new and the regulations are limited. This might change in the upcoming years. This means that companies will not only have to regulate the changing framework but also get involved in actively shaping it.
Asking questions and making recommendations on regulations could be essential to the community and the organizations as a whole. Also, one thing should be kept in mind that regulatory approaches for blockchain vary as per the nation.
So, you must work in accordance with the regulators to shape the emerging policies of blockchain and its best practices so as to evaluate the evolving rules and regulations.
Before you begin to implement blockchain don’t you want to see some blockchain implementation examples that will inspire you? Let's have an overview of different industries.
One of the leading examples of blockchain implementation in the banking sector. Keeping in mind the number of security breaches that the banking system experiences, blockchain implementation turned out to be an adequate alternative to online systems of banking.
This is the reason why specific banks have been compelled to implement this technology to maintain the confidence of their customers. As a result, it offers safety, speed, and precision in transactions and other banking activities.
For any type of insurance company, transparency of data is essential. The implementation of blockchain technology offers a streamlined exchange of data and makes sure that everything remains transparent.
This is generally executed through smart contracts. It authenticates the terms of contracts and comprehends if a specific situation or occurrence falls under the terms and conditions of the said contract. This leads to quicker claim amount issuance on the basis of merit. Along with that, records get updated and maintained quickly.
It is essential to keep in mind that the health
care industry needs proper record-keeping facilities. Moreover, such records that comprise sensitive data of a patient must get utmost importance. Thus, the implementation of the blockchain in the healthcare supply chain focuses heavily on pharmaceutical needs.
While blockchain effectively serves these needs, it also offers an opportunity to integrate the methods for online payment. This can also assist medical service providers and hospitals link up with insurance companies for effective payment processing.
This is yet another amazing case study of blockchain integration. With the onset of the digital world in the real estate domain, the existence of hacking risks cannot be overlooked. These comprise altering of details with errors, like inaccurate paperwork, the worst scenario of record-keeping and more. This may lead to inordinate losses to ordinary people. Fortunately, the implementation of blockchain caters to remove or decrease the error margin, thus, enhancing the reputation of the firm.
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