If you keep up with the regular financial news, you have undoubtedly heard about blockchain technology. Even though most people relate it more to finances because of its vast application in cryptocurrencies, this technology’s use cases go far beyond that. It can be enforced in industries like healthcare, the internet of things, agriculture, manufacturing, real estate, stock trading, and many, many more. It is so much used by various sectors that according to the Grand View Research report, the global blockchain technology market size is predicted to rise at a compound annual growth rate (CAGR) of 82.4 percent from 2021 to 2028.
So the question remains, will your organisation benefit from an affiliation with blockchain development services? That depends on various factors. Keep reading to find out.
A “blockchain” is essentially a collection of time-stamped “blocks” made up of digital data that has been encrypted using a particular hash function. The data in a blockchain ledger is categorised into: transaction data, participant data, and unique information (hash) that identifies each block from the others. This information is stored in a repository that a set of computers forming a network or “chain” share among themselves.
Every blockchain follows a list of norms that are appropriate for it. In most cases, a significant number of peer-to-peer computers (or “nodes”) check all incoming data before putting it in the ledger, rendering blockchain development decentralised. A blockchain database is immutable, eternal, and protected by multiple layers of cryptography. Moreover, despite the fact that all activities on a blockchain network are entirely open to the public, it conceals network participants’ identities by providing complete anonymity.
What goes into the blockchain development process?
Blockchain technology can be applied to practically any field you can think of. Healthcare and telecommunications, as well as real estate, media, and finance, are among the businesses that use blockchain technologies. For the procedure of blockchain development and integration, blockchain development companies use the following steps:
- They start by specifying the problem or the goal:
Before digging deeper into the blockchain development process, it’s critical to establish the aim of the procedure. You should be aware of how blockchain development services can assist your company, as well as the plausible challenges of the proposed plan.
- After that they focus on determining the right blockchain platform as per the need of your organisation:
Blockchain platforms use the same technology, but they specialise in different areas, and hence, it is important to figure out which platform has the functionalities that befit the project set out for particularly your business. Ethereum, Hyperledger Fabric, and Hyperledger SawTooth are some prominent blockchain architectures, each with their own special qualities. Professional blockchain development services can guide you well on the one you will be needing.
- Only after this, the time arrives for discussing business plans and requisites:
At this stage, the blockchain development company you employ should be advising you regarding the assessment, creation, and prioritisation of use cases for blockchain exploration. You will also be making decisions about which elements of the app will be blockchain-enabled (on-chain) and which will run on standard cloud hosting (off-chain). The product roadmap detailing the app’s alpha, beta, and ready-to-launch versions will be created post this.
Another crucial call to make is which parts of your app should be permissionless which will allow everyone on the network to freely validate the inbound data and which should be permissioned, that will restrict such privileges to selected members. The consensus mechanism to be used will depend on this decision.
- After that, your blockchain development service constructs the proof-of-concept (consensus):
A proof-of-concept, whether it is a working model or a theoretical idea, is a technique for establishing a blockchain project’s commercial feasibility. First, propositions are made to show the end-user the project’s viability and predictability. It’s also crucial to keep track of the technical GDPR criteria so you know where to implement them.
- Finally, the product is built:
After collecting feedback from all partners and completing the conceptual design, a mockup of the product is built and placed “on the chain”, and thereafter, your code is effectively distributed on a server.
The user interfaces for each component of the software are then built before going on to the development phase. At the same time, APIs that may be connected with user interfaces to run the programme on the back-end is built. These APIs are designed to perform auditing functions, data storage and recovery, keypair creation and assignment to required addresses, data verification with hashes and digital signatures, and/or to set up and activate smart contracts to power an app’s commercial activities. Essentially, blockchain development companies suggest that you create an application that can adjust to adapt to shifting business needs and goals.
Okay, now how to decide if your company requires blockchain development services?
Blockchain is huge these days on the financial news and so it is turning into a trend to use the technology in every organisation. However, everything that’s done by the majority population may not be right for you. So before you want to make the call to your closest blockchain development company in Australia for quick incorporation of blockchain into your infrastructure, you need to stop and think if your organisation really needs blockchain. Otherwise, you might end up shelling out a lot of bucks for unnecessary complications with very little return, and no one will take the responsibility for it. Hence, ask the following questions to yourself before you go for blockchain development services:
- Do you need enhanced security for your organisation’s data?
One of the most significant specialties of blockchain is the ironclad security it offers against malicious blockchain security issues which are quite common nowadays. In a blockchain, if data in one block is updated, data in all succeeding blocks also change, leading the entire network to be alerted. This function basically locks down the data on a blockchain, making it extremely protected against cybercriminals. What’s more, blockchain members are provided with two sets of keys. One is public, which is known to everyone on the network and is used to access and validate data. The other one maintains personal data and identities and is private to each member. So the personal data on a blockchain can only be decrypted with the private keys and therefore, can be seen and modified only by the original owner. Thus even if a hacker gets access to the blockchain, he/she cannot read or change anything.
You can use a blockchain solution to improve the privacy of your company’s data. If you deal with a lot of confidential data and want to ensure effective message delivery between participants, this will be quite useful (businesses, customers, etc.). By using blockchain development services, each action can be tracked, data access can be restricted, transaction security can be ensured, and various records can be secured.
- Do your operations require close monitoring?
In a blockchain-powered system, it is possible to attach a specific identification to every product and track its every move – the source, the destination, as well as every stop in between. This can help in a number of ways as follow:
- If you work in a sector like supply chain or your business deals with huge supply chain networks, hiring a blockchain development company to integrate the technology to your framework can be quite useful. The data provenance feature not only makes supply chain management especially simple, but also makes corrupting the system to steal money almost impossible.
- This easy product identification and source verification further can prevent counterfeiting goods.
- The maintenance of both personal and commercial intellectual property rights becomes simpler and more efficient with the integration of blockchain development services. The creations, trademarks, and profits of authors, musicians, photographers, content creators (text video, virtual reality, etc.) and bloggers can be protected with the confidentiality of their private information and the possibility to track the original source of content, and therefore, detect plagiarism, easily.
- Do you need a more efficient ledger for your important information?
An organisation, no matter how big, always has a huge load of specialised and specific data, including highly confidential business secrets, that it requires secure storage for. Neither should this data ever get leaked nor should it ever be lost. Blockchain turns out to be a huge help in this department. Once data is registered on the secure database of blockchain, it is immutable, unhackable, and eternal. In addition, once the rules of the network are set, data addition is completely automated and free from human errors; plus it saves tons of paperwork and human effort.
- Is decentralisation important for more efficient business operations for you?
At its core, blockchain technology is decentralised, i.e., operated peer-to-peer on a shared ledger, away from the prying eyes of a central authority. On top of that, a blockchain network invalidates any intermediaries, including brokers, agents, and such. This lack of bureaucracy inevitably speeds up the whole process, along with reducing the overall cost that would otherwise trickle out for these middlemen. Even more, a blockchain platform inherently allows you to set up an incentive structure for the network members. You may ensure higher participation as well as a greater level of employee engagement simply because of this exciting feature.
Is blockchain an incredible invention that makes operations more efficient? Absolutely. Will your company benefit from it? Only you can work up the answer. While blockchain technology will bring a lot of positives to your organisation, just like every other high-tech, it comes with its own cost as well as complexities. Take your decision keeping every external condition in mind. However, remember the blockchain development company you choose for this purpose will be in charge of the security of your critical business information and may stay as your partner forever. Therefore, if you do decide to go for it, make sure to pick only reputed and skilled blockchain development services that will guide you with professionalism, business smarts, and integrity.