Blockchain Implementation: Go-to Guide

Blockchain implementation is revolutionizing the way we interact with data. 

Blockchain technology itself has been gaining momentum in recent years, and it is becoming increasingly necessary for businesses to understand the potential of implementing this cutting-edge technology. In fact, a PwC report indicates that the utilization of blockchain may increase global GDP by $1.76 trillion in the next ten years.

Although businesses have been adopting blockchain into their operations, it is understandable that the integration process can be challenging for those with less familiarity with the technology.

Throughout this guide, you will learn the step-by-step process of how to implement blockchain technology into your organization, its benefits, associated costs, and common mistakes to avoid during implementation. 

Let's get started. 

How Can Businesses Benefit From Blockchain Integration?

Knowing how to implement a blockchain begins with understanding how this emerging technology can benefit various industries. Blockchain implementation in healthcare, for instance, allows healthcare providers to preserve and exchange patient data in a way that identifies both severe and even dangerous medical mistakes with precision.

The following are some notable advantages of blockchain technology.

• Increased transparency - With distributed ledgers, companies can take advantage of an immutable shared database, allowing all stakeholders to access the same information in real time. This eliminates any discrepancies between different parties and enables greater accuracy in bookkeeping and financial records.
• Improved security - As businesses become more reliant on digital data, they need to be sure that their information is secure. Blockchain integration can improve security by decentralizing and encrypting the data, making it virtually impossible to hack or tamper with. 
• Lower costs - Blockchain implementation eliminates the need for third-party intermediaries, ultimately reducing overhead costs by cutting out intermediaries and streamlining processes, resulting in fewer transaction fees and lower operational expenses.
• Improved efficiency - The use of blockchain can help companies save time and resources by automating and streamlining their processes. This minimizes the risk of fraud, simplifies audits, and frees up staff to focus on more critical areas of the business rather than spending energy on tedious paperwork or manual labor. 

It is clear that knowing how to implement blockchain in business can benefit operations in a number of ways. With the right implementation strategy in place, companies can enjoy all these benefits while staying ahead of the curve in terms of industry trends. 

The Implementation of Blockchain: Is It Hard or Easy to Execute?

Blockchain technology is not as straightforward as installing a new software program. This requires extensive research, development, and testing before any real-world deployments can begin.

Also, various technical challenges need to be overcome when implementing a blockchain. These include ensuring the security of data stored on the chain, scalability issues related to high transaction volumes, and interoperability between different blockchains – all of which require skilled developers with significant experience in this field.

While these points are true, blockchain technology has the potential to transform many industries and, once the right resources and support are in place, can be harnessed for its benefits.

Things to Do Before Implementing Blockchain

Before beginning the development process, evaluating your company's requirements and deciding if blockchain technology suits you is an important step. First off, consider the following questions:

• What are your business goals and objectives?
• What problems are you trying to solve with blockchain technology?
• What are your expectations of the outcome of the implementation?

Educate yourself on blockchain and familiarize yourself with blockchains, such as public, private, or consortium networks. Consider which kind of network might be best for your specific use case based on what other companies have done with blockchain implementation.

Next comes planning. You’ll want to create a comprehensive business plan that outlines your goals and objectives as well as the timeline for when you anticipate reaching those goals. Additionally, it’s key to identify who will be responsible for different aspects of the project and how decisions will be made.

You should also determine what aspects of the current business process blockchain can enhance. A good blockchain implementation example is using blockchain to ‘tokenize’ existing business processes. 

A suitable case for a tokenized asset is art. Take this wild example: Picasso’s 1964 masterpiece Fillette au béret was brought to the blockchain and sold to more than 50 investors at 1,000 Swiss francs ($1,040) apiece, giving birth to Art Security Tokens (ASTs). 

Business assets, such as real estate or company equity, are converted into ‘digital tokens’ that can be transacted on the blockchain – making them more secure and efficient. 

Businesses can also accept payments from customers using cryptocurrencies, such as Bitcoin and Ethereum, by implementing a crypto payment gateway. In this way, customers can pay for goods and services without having to use traditional banking methods, reducing transaction fees.

Essentially, the specific needs of businesses dictate whether blockchain applications can be beneficial, and not all companies require a pre-made solution to quickly improve their operations.

Once you have a plan in place, it is time to begin building the actual blockchain incorporation. 

How to Implement Blockchain Successfully?

With its potential to revolutionize industries and create new business models, knowing the steps to implement blockchain successfully is a must for any organization looking to stay competitive.

If you're looking to implement blockchain in your business, there are some key steps you need to follow to ensure a successful implementation.

Step 1. Begin with a Use Case

One of the key blockchain implementation steps is getting a clear understanding of how blockchain can help improve your business processes. To begin employing blockchain technology, it is essential to determine a purpose for its use. This ensures that the right infrastructure and features are built into place from day one, allowing for scalability and future development as needed.

Consider what issues you are hoping to address and the advantages that can be gained from using blockchain. Establishing a specific objective will enable you to allocate resources efficiently and keep your efforts directed at the correct targets.

One interesting example of a use case is knowing how to implement blockchain in healthcare. Using a distributed ledger, patient data can be securely stored and shared with other healthcare providers without giving away the patient's personal identity.

As an author, you could tokenize your intellectual property to protect authenticity. By creating tokens representing assets, authors could track and verify specific pieces of content, allowing them to keep control of their intellectual property and prevent unauthorized copying.

Step 2. Create a Proof of Concept

A proof of concept (POC) is a prototype that demonstrates the viability and functionality of a proposed project or system, allowing organizations to test their ideas on a limited scale before investing time and resources into full-scale development.

Through this process, you will be able to find out firsthand what advantages (or drawbacks) blockchain has when put into action so that you can then make an informed decision about its potential use for your business.

Step 3. Make a Careful Selection of Your Blockchain Platform

Companies must carefully consider their specific needs when selecting a platform. This is because different blockchain platforms have different features and capabilities that can either limit or maximize the value they can achieve from using blockchain technology.

Take into account aspects like security, scalability, and cost when choosing a blockchain platform. Each has its own benefits and drawbacks, so it’s wise to compare them against each other before deciding.

Step 4. Build and Test a Blockchain Solution

With your blockchain platform in place, you can start building and testing your blockchain application. In this step, you will create the software and connect it to your existing systems.

This ensures that the system works as designed, can handle expected load levels, meets performance targets, and is secure from malicious attacks. As a result, the organizations gain confidence in their technology stacks before deploying them.

Step 5. Deployment

Deploying your blockchain solution technology is a key step in determining whether it will be successful. This basically involves putting your solution into operation and making it available to your users. It also establishes the necessary infrastructure to ensure a secure data storage and transactions environment. To avoid costly mistakes down the road, it is essential to plan carefully before going live.

Step 6. Partner Onboarding and Integration

It is likely that you will need to onboard partners and integrate your systems with theirs if you're using blockchain technology in a business environment. This step will involve establishing trust and sharing data between systems.

By bringing partners on board, organizations can tap into their existing networks to extend the reach of the system and create a more robust infrastructure for their blockchain-based applications. 

Step 7.  Build the Ecosystem

Blockchain implementation requires the creation of an ecosystem that fosters an environment in which all stakeholders benefit from the technology. 

This final step involves establishing partnerships and relationships with other companies and organizations that are using blockchain technology. Your blockchain solution will also be used in the development of applications and services.

A successful blockchain implementation – such as the IBM Blockchain for supply chain and distribution, and with Accenture for digital contracting with its insurance clients – provide new infrastructure for the next generation of streamlined business applications, transforming how organizations conduct business.

Common Mistakes That Should Be Avoided In Blockchain Technology Implementation 

Knowing how to implement blockchain technology into your business can offer a range of advantages, but it is equally essential to be aware of potential pitfalls in order to ensure successful implementation. It's important to think carefully about the process since blockchain can be a little tricky.

• Poor governance - There's no accountability and transparency in the system with bad management, so resources are wasted, and the user experience suffers.
• Underinvestment in security - This common mistake leaves the system vulnerable to malicious actors and can result in catastrophic data or financial losses.
• Lack of interoperability - This can bog down data and processes, leading to confusion and inefficiencies that should be avoided when implementing blockchain technology.
• Unrealistic expectations - This can cause misallocation of resources and unclear objectives, resulting in ineffective blockchain implementation.
• Failure to follow regulations - Implementing blockchain technology without adhering to the necessary regulations could result in hefty fines or even legal troubles.
• Lack of scalability - This limits the number of transactions that can be processed at any given time, resulting in slower transaction speeds and increased costs.
• Not understanding the technology - Not understanding the technology underpinning blockchain implementations can lead to significant losses, so users and developers should get a good understanding before getting started.
• Poor user experience - Blockchain requires a certain level of technical knowledge from its users, making accessing and using blockchain services challenging for non-technical customers.

It should be noted that a proper blockchain integration can be user-friendly for organizations and their customers, but this requires developers and businesses to be thoughtful when designing and implementing the solution. 

Understanding these mistakes can save your business from costly repercussions and help you implement blockchain integration successfully.

How Much Does It Cost to Implement Blockchain In Business?

The cost of blockchain implementation in a business is not fixed and can vary depending on each organization's individual needs. 

Factors such as hardware requirements, software development costs, and maintenance fees can all contribute to the overall cost. Additionally, businesses may need to consider consulting costs for setting up and managing a blockchain network among multiple stakeholders.

Ultimately, every implementation is unique, so it's important for companies to assess their individual needs before making an investment in this powerful technology.

Implementing a Blockchain Has Never Been Easier

There's no denying that blockchain implementation is the future of improving operations across a wide range of industries, but actually integrating it is no easy task. With the help of Aegas, however, the process couldn't be simpler.

Aegas allows you to work with the best developers to make your blockchain dreams come true. Essentially, outsourcing feels like having your own product team when you work with us.

As more businesses move towards embracing this revolutionary technology, Aegas will continue to be the go-to resource for those seeking an effective solution to implementing a successful blockchain system.