HOW CAN I SET UP A BLOCKCHAIN FOR MY BUSINESS

By the second quarter of 2021, the number of registered Blockchain wallets has reached more than 70 million. Because of this, the global blockchain technology market is likely to accumulate $20 billion in revenue by 2024. Financial companies opt for this because it helps them save up to $12 billion yearly.?

Blockchain can improve digital business operations, increase your revenue, and enhance security in your business. Setting it up involves several steps, including creating proof of concept, selecting blockchain and its building and testing, network management, activation, and more.?

Gartner predicts that blockchain will produce more than $3 trillion in enterprise value by 2030, which means that up to one-fifth of the global economic infrastructure will run on this kind of system by 2030. Learn more about setting up a blockchain for your business below.?????

8 Steps In Setting Up Blockchain For Your Business

Blockchain technology has become a vital part of the enterprise software stack for companies to simplify business processes and spend digital assets.? Although it is not a necessity, it can be transformative. Since the advent of this technology, companies in all sectors have developed breakthrough solutions.

Here are the eight steps you could follow if you are planning to set up a blockchain.

Start With Use Case

When it comes to blockchain implementation, you first need to identify a use case that will require you to study, clarify, and arrange your needs for a blockchain. You need to have answers to these questions: “Why do I need it?” and “What are my objectives in applying a blockchain implementation?”

Asking these will help you understand blockchain and assist you in carrying out your plans for your business, as the answers you will get will clear out the grey areas in your decision to have a blockchain implementation. After naming the use case, bear in mind to take it slow for security purposes.

Select only relevant blockchain use cases and ensure that you evaluate, research, and explore them before utilizing them to have a clearer and broader picture of your blockchain implementation.?

Create Proof of Concept (POC)

After identifying your options for the use case, the next step is creating a valid Proof of Concept— a strategic step used to evaluate the realizability of blockchain implementation for your business.?

You need to understand the rigid planning phase involved before you create your POC. Consider, too, the competition and the challenges your business faces. Ask yourself about the issues you have that blockchain implementation can solve, the positive results you can see, and whether it can transform your business.

Blockchain Selection

Being deliberate and careful is a must in selecting a blockchain platform for your business. Here, you have to take note of your budget and conduct thorough research. Be aware that there are a variety of blockchains platforms out there. Here are some of the examples:

• Ethereum
• Hyperledger Fabric
• Stellar
• Quorum
• Corda
• Multichain
• Open chain

Build and Test the Blockchain Solution

It is a must to study the current blockchain technologies to assist you in choosing the best implementation. Evaluating the factors below may help you in the process:

• Blockchain infrastructure
• Technology quality (security and compatibility with private and public blockchains)
• Technology vastness (compatibility with multichain and other multiple platforms)

One important key feature of blockchain technology is smart contracts that enable businesses to make important transactions without third-party interference. The only work you need to do is attach your rules to the agreements.?

Moreover, it allows transparent, fair, and automatic transactions since all parties are expected to abide by the contract rules. Companies choose blockchain technologies because of the smart contract’s automatic nature.?

Management of Network

The fifth step is about laying the foundation for information receiving. In running and managing a network, you should remember that the block you made has all the chain characteristics.?

In this stage, encrypted tokens or cryptocurrency take the spotlight. It activates the power needed to ensure that the nodes’ communication persistence remains intact.

Activate Blockchain

Activating an application on the blockchain network comes after the fifth step. It involves hosting each of your applications on the main blockchain. Initialize a cloud server if you have hybrid solutions or applications that are both on-chain and off-chain entities.?

Consensus Protocol

The next step is choosing the appropriate consensus protocol. Here is a list of where you may choose from:?

1. Proof of Work

It rewards miners for providing valuable solutions to challenging equations. It also counters cyberattacks and helps in transaction validation.

1. Proof of Stake

The miners have to validate block transactions according to the number of coins they possess, so the higher the quantity of cryptocurrency a miner has, the higher the ability to create blocks.?

1. Delegated Proof of Stake

Stakeholders have to elect representative miners who will build the blocks. It ensures approval of transactions, but there is only a fixed set of miners who can work on the block production activities.?

Build the Ecosystem

An ecosystem is a must-have if numerous stakeholders start to get involved in the blockchain. It will serve as a community inside that will help improve the understanding of the blockchain industry and foster trust among businesses.

Conclusion?

Blockchain technology is transforming the way we do business and simplifying processes in an unprecedented manner. It’s not a necessity, but it can be transformative for your company if you follow these eight steps when setting up a blockchain.

Although there are many questions unanswered about this new technology, one thing is clear: Its impact on enterprise software will continue to grow exponentially as more companies adopt its use in their businesses.?

Sources:

https://techjury.net/blog/blockchain-statistics/#gref

https://www.techfunnel.com/information-technology/blockchain-implementation/