A blockchain is a distributed database that is shared among the nodes of a computer network. A blockchain is a type of distributed database. In the same way that databases store information electronically in digital representation, a blockchain does the same. Known for their critical function in cryptocurrency systems such as Bitcoin in keeping a secure and decentralised record of transactions, blockchains are becoming increasingly popular as a general technology. In the case of blockchain technology, the innovation is that it assures the accuracy and security of a record of data while also generating confidence without the requirement for a third party to be trusted.

Steps Involved in Implementing Blockchain Technology:

To begin, this is the first and most significant stage when it comes to the deployment of blockchain technology. To establish a use case, you must first investigate, explain, and arrange your requirements for a blockchain. This is known as the use case identification process.

If you want to establish your use case, you’ll need to ask yourself certain questions, such as “why exactly do I need a blockchain?” and “how can I get started?” “Can you tell me why my company requires a blockchain implementation?” In the event that I decide to create a blockchain implementation, what are my targets, aims, and objectives?

It is necessary for you to select some relevant blockchain use cases, which you would then have to examine, research, and extensively explore before incorporating them into the construction of your blockchain as the picture becomes more expansive and apparent to you.

The Importance of Creating a Proof of Concept (POC)

Following the identification of the various alternatives for your use case, the next step is the development of a valid Proof of Concept. In case you’re wondering what POC stands for, it’s just a strategic procedure that is utilised to determine whether or not a blockchain implementation would be feasible for your company.

It is essential that you understand the tight planning step that precedes the creation of your Proof of Concept before you can begin working on it. As with the previous step, you would need to think up some important questions that would help you in the examination of your Proof of Concept step by step.

In order to be clear, it is vital to clarify that “direction” is required when developing your Proof of Concept. You should be able to appreciate the implications of your actions and their potential consequences. Your actions and decisions should be tactical and purposeful, to put it another way.

The following are the steps involved in developing a Proof of Concept:

  1. Make a set of guidelines that clarify the scope of your company endeavour and follow them to the letter.
  2. Create a prototype that would include sketches, design, programming, architecture, and other elements of the project.
  3. Put your prototype through its paces. It is critical that you put your prototype through its paces.
  4. Analyze your MVP with the bare minimum of the most important elements that you desire. MVP is an abbreviation for “minimum viable product.”

Prudently Choosing a Blockchain Technology

Prudently Choosing a Blockchain Technology

When picking a blockchain platform for your company, it is critical that you take your time and think about your options. A strategic phase in which you would have to take into consideration issues such as your budget and the results of your extensive study.

In terms of choosing the blockchain platform for your business, you should be aware that there are a number of different blockchain platforms to choose. We’ve listed some of the most popular blockchain systems in the section below.

Some of the most popular blockchain platforms are listed below.

  1. Ethereum:- Essentially, it is employed in the development of novel contracts. Numerous corporations are currently utilising it in order to assess the prospective growth rate of their own businesses.
  1. Quorum:- The use of Quorum in blockchain implementations has been widely accepted by a large number of businesses. Quorum essentially aids in the prevention of data tampering in business transactions by allowing organisations to conduct transactions on the platform, thereby ensuring the highest levels of security and transaction privacy are maintained.
  1. Corda:- In addition to creating amazing designs, a specialist in this blockchain platform will be able to leverage the platform to eliminate all costly contingencies in your business contracts. It enables you to conduct direct transactions through smart contracts, which provide the highest level of security and anonymity.
  1. Multichain:- According to its name, this blockchain platform can be used in a variety of industries, including banking and finance, the healthcare sector, human resources, e-commerce, the educational sector, retail enterprises, and other similar fields of endeavour. This software is mostly utilised for the professional optimization of your company’s human resources activity.

Developing and evaluating a blockchain-based solution

It is recommended that you always research the current blockchain technologies in order to select the most appropriate for your blockchain implementation. This procedure entails assessing a number of factors, such as these:

  1. It is important to consider the quality of the technology, namely whether it provides valuable security and consensus. It is also important to understand whether it is compatible with both private and public blockchains.
  2. The technology’s breadth; that is, is it interoperable with many blockchains and any other multiple platforms that may exist?
  3. Smart contracts, which are a characteristic of blockchain technology, are one of the most essential aspects of the technology. The use of smart contracts allows firms to conduct critical transactions without the involvement of a third party. Simply attaching your own set of rules to the contracts is all that’s required.

The advantage of this is that it makes it possible for the transaction process to be automated, transparent, and equitable. All parties to the contract are required to follow the terms and conditions of the agreement. The fact that smart contracts are completely automated is one of the reasons that many businesses have chosen blockchain technologies.

As a result, when developing your blockchain solution, you must consider the development of smart contracts, which will automate the processes associated with your business transactions. Testing your blockchain implementation entails running test apps, as the case may be, on the test network in order to ensure that it is functioning properly and in the correct manner.

Managing and operating the network in production

Managing and operating the network in production

In order to accomplish so, you must first construct the very first block of your own design. It is important to remember that this block must possess all of the features of the chain. Essentially, this step entails creating the groundwork for the subsequent reception of information.

It is at this point that the encrypted token, more commonly known as cryptocurrency, enters the picture and becomes relevant. Using the encrypted token, the power required to ensure that the persistence of the communication between the nodes is maintained would be activated.

Activating the Blockchain Technology

All that remains is for an application to be activated on the blockchain network after the network has been successfully operated and managed. This would be an application server that has been prepared. You would be required to host each of your applications on the main blockchain in this case.

Having hybrid solutions, which are apps that are both on-chain and off-chain entities, it is advised that they be configured on the cloud server before being deployed on the blockchain.

Choosing the Most Appropriate Consensus Protocol

Work Demonstration

An example of a consensus protocol is one that compensates its miners for delivering valuable answers to difficult equations. Basic to all of this is that the primary goal of Proof of Work is to defend against cyber-attacks such as DDoS, which stands for Distributed Denial-of-Service attack. Proof of work also contributes to the validation of transactions, which allows for the production of new blocks on the blockchain.

Evidence of a Stake

Once again, a consensus protocol is used, in which the developer of the subsequent block is chosen through a random selection process from a pool of qualifications that could include age, wealth, performance, and so on.

When using Proof of Stake, the miner is typically required to validate block transactions based on the number of coins he or she currently has in their possession. In layman’s explanation, the higher the quantity of cryptocurrency in the possession of a miner, the higher his or her ability to create more blocks.

Delegated Proof of Stake

This is a consensus protocol that is democratic in nature. Here, the stakeholders simply have to elect or vote for representative miners that would build the blocks. This consensus protocol ensures the approval of transactions. Here, only a fixed set of miners are involved in the block production activities.

Byzantine Fault Tolerance (BFT)

This consensus protocol involves a situation whereby different components of the network may fail. Hence, the consensus is achieved based on the same value even if some network components are unresponsive.

Proof of Weight

In this consensus protocol, the agreement is achieved based on how much cryptocurrency the miners have, that is the ‘weight’ of their cryptocurrency. Here, the amount of coins available in a miner’s wallet is what determines the weight of the miner’s cryptocurrency.

Building the Ecosystem

When numerous stakeholders begin to get involved in the blockchain, then it becomes necessary to have an ecosystem. The ecosystem will be a community inside the larger blockchain community.

It will function to help improve understanding of the blockchain industry, as well as fostering trust among businesses. In building an ecosystem, the stakeholders have to agree on the following issues:

Working Your Way with Uncertainty

The future of blockchain regulations is still very much uncertain. This is why it is important to follow up with the revision of these regulations and to be deliberately involved in the making of these policies.

Other Important Factors to Keep in Mind During Blockchain Implementation.

Blockchain Implementation

While undergoing your blockchain implementation, there are some other vital key points that you should consider, and they are:

It Has to Work

You have to put in your all to make sure that your blockchain implementation actually works and works just the way you want it to. In order to do this, you would have to completely test your system and designs in a controlled environment. Thereafter, you can proceed to take it to the actual competitive setting for further testing.

Testing your blockchain implementation is necessary because this is when you may discover a variable that you had hitherto not considered, and it may affect the outcomes of your blockchain implementation exercise. You should also research more for the best blockchain implementation example.

Do Not Yield to Setbacks

Keep in mind that there will always be setbacks, especially at the beginning stage of blockchain implementation. However, instead of yielding to failure, you have to fix the problems and try many other methods.

In these kinds of scenarios, employing the tactic of trial and error would prove to be beneficial to you. Ensure that you have exhausted all available alternatives and in due time, you would finally stumble upon the solution that would lift your business in the blockchain.

Focus is Key

Never lose track of your foremost objective whenever you are making certain adjustments to your blockchain protocol. Blockchain comprises various aspects and one can quickly get carried away. Getting distracted will affect your general objective.

Make sure you stick to the plan and continuously give to the costumers exactly what you promised to give to them. Remember, the aim is to transform your business and not to transform the entire blockchain system.

Challenges in implementing blockchain

To a very large extent, the blockchain technology industry, like every other industry, has its challenges and limitations. Below, we will be discussing the common challenges that are faced by stakeholders in blockchain technology implementation:

Insufficient Skilled Blockchain Developers

This is a major problem that is associated with the implementation of blockchain. The industry is still experiencing a low influx of experts and smaller businesses are being forced to offer competitive incentives so as to attract and keep the limited skilled blockchain experts.

Factors to Keep in Mind During Blockchain Implementation

Varying and Unstable Blockchain Regulation

Different participants in the blockchain industry are still unable to agree on regulations that will guide the implementation of blockchain technologies. The issue is not in adopting regulations; however, the challenge is with where what kind and how much should the regulation take effect in the activities of blockchain implementation.

This is why all blockchain stakeholders need to influence the government and other regulatory authorities on a consensual rule that will be beneficial to all.

Problem with Scalability

This is another prevalent challenge that blockchain technology implementation is facing. A lot of blockchain developers are currently tasked with resolving the contention between maintaining the normal benefits of DLT and at the same time ensuring that its scope is vast at high speeds. Indeed, the entire potentials of the blockchain technology industry are still very much unscalable.

Security Issues

This can as well be said to be the single most disturbing issue of blockchain technology. It should be noted that the basis of blockchain technology was security. However, with the increasing practical effects of the 51 percent attack theory, the blockchain industry is vulnerable to formidable threats from hackers.

Energy Consuming Consensus Protocols

energy consuming consensus protocols

This is in fact, one of the greatest challenges in blockchain technology implementation. This challenge was taken more seriously when it was revealed that in 2017, the energy consumed in the mining of bitcoin was equal to the same amount of energy consumed by the whole population of Denmark. This probably sounds surprising to you, right?

The solution to energy-consuming consensus protocols is for stakeholders to develop new and innovative modes of consensus for progressive decision-making acts. A breakthrough in this challenge has been predicted to bring about a potential evolutionary process that will take DLT to the next level.

Final Thoughts

Blockchain implementation requires a number of modifications and this by implication may make it very complicated to work with. Ensure that your user interface is simple enough for your customers and make it affordable for the customers. Without doubts, we’re positive that this article will greatly help you in achieving your vision in the blockchain business regardless of any blockchain implementation challenges.