What is Blockchain technology?
Blockchain Technology is a modern database infrastructure that revolutionizes information sharing amongst the network of participants. Its groundwork is rooted in the form of an immutable ledger, where data is recorded meticulously in blocks linked with each other, forming an unalterable chain. This sequential arrangement assures that once the data is stored, it becomes invulnerable to carry out any modification or deletion from the network of chains. Due to this, Blockchain technology emerged as a potent immutable ledger for tracking orders, accounts, payments, and other transactions. Furthermore, the effective built-in security mechanism system prevents unauthorized attempts to manipulate transaction entries and creates uniformity in the shared view of transactions.
How do you implement Blockchain technology for your business?
In the evolving technological advancement, Blockchain emerges as a decentralized system. While adopting any new technology for business, the main factor that we choose to consider is ‘TRUST.’ Focusing on trust is not the only thing expected in Blockchain; there comes security, transparency, and traceability, which invades to gain the trust of the partners.
There are many benefits of Blockchain technology that you should opt for instead of traditional database structures. Below are the multiple reasons you must know:-
A decentralized network emerges as the perfect solution with an unwavering commitment to transparency. Leveraging this network, transactions undergo a consensus method. This system ensures every node maintains identical copies of the transaction ledger, fostering an ecosystem of accountability and trust.
Blockchain is an immutable system that prevents data breaches and fraudulent activities by interlocking transactions through encryption and hashing. Its ledgers are immutable, making it difficult for hackers to track transactions. Nodes store transaction copies, preventing network attacks.
Blockchain decentralization shifts centralized entities to a distributed network, promoting consensus-driven governance and streamlining operations. This eliminates intermediaries, reduces costs, and enhances efficiency.
Asset-based tokens and digital claims on physical assets are gaining popularity among businesses. This is due to their ability to tokenize real-world assets like gold, crude oil, real estate, rentals, and legal documents, providing them greater flexibility and opportunities.
Five steps to implement Blockchain technology
1. Get started with the use case
To develop a blockchain-based framework, first determine the problem you’re trying to solve and whether Blockchain is the best solution. Ensure that Blockchain development services can help resolve the issue. Start with a pilot project to identify its use case, evaluate, research, and explore before implementing it. This helps determine if Blockchain proof of concept is an ideal starting point for your project.
2. Carefully choose your Blockchain platforms
After selecting the use case, choosing the best Blockchain platform catering to your business is necessary. Knowing the best Blockchain technology through market research and budget is vital to strategic decisions.
If you are looking forward to selecting a Blockchain platform for your business, below are the best ones to choose:-
3. Develop and test your Blockchain solution
Staying-up-to date about the prevailing Blockchain technologies is recommended for selecting the best Blockchain implementation. For evaluation, you must consider the following factors:-
- Blockchain ecosystem
- Its compatibility with other multiple Blockchain platforms
- Technology prowess, whether it offers reliable consensus and security or not.
Another essential feature of Blockchain is to look up for ‘Smart Contracts.’ Smart contracts facilitate businesses to make crucial transactions without interference from third parties.
4. Build an ecosystem
After Blockchain development and testing, incorporating community interest can enhance its functionality. Creating a group within an organization can boost trust in the Blockchain ecosystem, enhancing its integration.
5. Develop with a purpose
The development of Blockchain should align with organizational issues and require amendments to ensure compatibility with internal processes. Regular updates are necessary to establish the foundation of Blockchain.
Reasons to consider while implementing Blockchain solutions
Blockchain technology has gained a lot of attention from enterprises of different sizes, but it is still necessary to consider the failure rate before implementing it for your business. Gartner report predicts that more than 90% of businesses fail and can’t survive beyond 2 years. Therefore, missing out on these estimates can be a costly oversight.
To evade such a situation, consider evaluating why your business needs Blockchain technology. Below are a few questions you must reflect before implementing:-
- Is your primary goal to aim for transparency or traceability?
- Is decentralization a solution to address your business challenges?
- Implementation of blockchain-based solutions will significantly reduce the computational time for various processes?
- Are you exploring Blockchain to generate a new tunnel for finance avenues?
- What data type are you willing to store in your distributed ledger?
- Who all will be included in the Blockchain ecosystem?
- How much control will you have on your stored data?
- What is the maximal scalability you can expect?
Consider all these questions before you navigate in the direction of your plan. Moreover, a few factors are possible issues in check:-
1) Fiscal dimension
Blockchain economics is often overlooked, leading to the need for long-term monetization plans. The value of Blockchain depends on its user base, similar to social media platforms. Understanding its use cases, network effects, and pipeline is crucial before implementing Blockchain for businesses.
2) Governance dilemmas
Blockchain necessitates a robust governance structure for consensus between users and validators. Few instances have demonstrated breaches due to governance issues.
3) Regulatory vagueness
Blockchain and edge computing technologies face challenges in maintaining clear regulations, but smart contracts ensure legal validity for individuals in transactions, addressing the common challenge of maintaining clarity.
4) Database-centric thinking
Blockchain is frequently perceived as a traditional database, but its limited data storage capacity necessitates the development of a decentralized application architecture.
5) Inadequate expertise
For a successful Blockchain implementation, it’s crucial to maintain a suitable skill set, including knowledge of programming language, smart contracts, governance, tokenomics, incentive mechanisms, and cryptography, to meet the requirements.
6) Aging system challenges
Traditional systems, particularly in sectors like healthcare, require compliance, making the integration of Blockchain into the existing framework challenging.
7) Faulty KPIs
Decentralized platforms operate internally and externally, and if your KPIs are not functioning correctly, there’s a risk of system crashes.
Best Applications for Blockchain in Your Business
Below are the top 10 applications of Blockchain in business, with a few examples of the best implementation examples:-
a) Trade Finance
Factorin is a blockchain-based trade finance platform that revolutionized and embraced this transformative technology. By automating trade finance transactions, they accelerated faster, more transparent, and more secure processes for all parties involved.
b) Capital markets
Blockchain technology has the potential to significantly enhance capital markets, from asset issuance to clearing and settlements.
c) Banking & Finance
World’s leading giant banks are harnessing the power of blockchain technology to streamline and optimize financial processes. However, they are seeking for methods to leverage this technology to addressing transaction speed and operational cost issues.
Some of the well-known international banks implementing this technology in their operations are:-
1) Goldman Sachs and USDC
2) J.P. Morgan and Liink
3) Swedish Central Bank and E-Krona
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4) Money laundering protection
Blockchain technology is a potent tool that deters money laundering by creating a permanent record trail for every transaction. Moroever, it facilitates authorities to trace the origin of funds more quickly.
Lemonade, an insurance company, is reshaping its operations using AI and blockchain technology to provide home, car, and pet insurance. The business model which features fixed monthly fee, and funds allocation for future claims to ensure efficiency and maintain customer centric approach.
BONUS READ :- Blockchain Technology Trends
What is the cost of Blockchain implementation?
The cost of implementing Blockchain for your business mainly depends on multiple factors, which include features, complexity, type, Blockchain platform, and tech stack. Considering all these factors, we can analyze the cost of Blockchain implementation.
Take into account the below-mentioned key pointers before you look at the cost of Blockchain implementation:-
a) If you need to develop a new Blockchain product or integrate Blockchain into an existing product
b) If you are looking for private or public Blockchain
c) If your application needs to deal with financial transactions
d) Choosing cloud computation if the application requires it
e) Type of product interface
f) If Proof of Concept is necessary for your application or not
g) Number of users interacting with your platform
Most probably every Blockchain development company estimates the cost of implementing Blockchain based on three key factors:-
- The complexity of the Blockchain project
- Development resource
There are multiple roles of activities that influence the cost of Blockchain app development:-
a) App Design
b) Development of the application
c) Application deployment
f) Upgrading the application
g) Integration of third-party tools
How can OpenXcell help with the implementation of Blockchain in your business?
Hiring OpenXcell will help to avail the top-notch Blockchain development services as they are backed by their profound experience in Blockchain development and consulting. Their proficiency spans beyond development to offer excellent digital security by developing a decentralized network for secure data processing. With a team of Blockchain developers and their comprehensive approach help you analyze every aspect before venturing into the market. Moreover, their intuitive solutions help to build innovative, technologically advanced, reliably user-friendly and competitive Blockchain products.
The constant evolution of Blockchain has garnered immense admiration as a technology. This is paving the way for businesses to position it as the most preferred technology for streamlining various operations. On the other hand, before embracing this technology, it is essential to ascertain that a few specific modifications are applied before implementing them for your business. To do so, engage a Blockchain development company or a smart contracts development company; through their Blockchain offerings, you can get valuable insights about the pros and cons of your use case. This is certain as you must be thorough before applying Blockchain technology to your business.
Being uncertain about Blockchain will end up presenting challenges for your business. Therefore, it is necessary to reach out to experts to comprehend better how the process goes on. Moreover, the experts will help you craft a POC and enhance its visibility. Our dedicated team of Blockchain developers will help many business entities seamlessly integrate Blockchain technology to achieve better business outcomes.
Blockchain technology enables businesses of all sizes to implement decentralized storage and processing, ensuring data efficiency and efficient workflow automation.
Blockchain implementation offers a host of benefits like trust, security, traceability, and transparency while providing cost-effective and efficient solutions across diverse networks.
Common Blockchain solutions are easy to implement for specific cases, while lightweight and customizable ones are harder to execute.
You can hire a remote Blockchain developer and team from OpenXcell, as they have the necessary skills, experience, and knowledge for your desired project.
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