5 Important Traits of a Successful Enterprise Blockchain Implementation

In recent years, blockchain technology has revolutionized industries by offering a wide range of applications in various sectors, including finance, healthcare, food, and supply chains. Technology refers to a shared, distributed ledger that consists of a list of transactions that cannot be modified without a consensus.

To increase efficiency and transparency, enterprise Blockchain technology can be used to prepare smart networks for data mobility. Many companies have either already implemented this technology or are currently considering it to enhance their business processes.

Enterprise Blockchain Overview

An enterprise blockchain is a type of permissioned blockchain that can be used to streamline business processes at scale, such as tracking supply chain goods or settling global payments.

Enterprises have a set of needs and requirements that can’t be satisfied by public blockchains. These allow any participant to read and write in a permissionless manner.

The participants in a private or hybrid blockchain are known as one organization or from multiple organizations. These are mainly private or hybrid (consortium), rather than public. Some of the advantages are

• Scalability

With a smaller set of nodes and different consensus mechanisms, Hyperledger can run up to 1000 TPS vs Ethereum’s 7 TPS.

• Trusted members

All the network participants are known accountable, decreasing the risks of network attacks.

Concerns about Enterprise Blockchain Implementation

Blockchain is a revolutionary technology. Consider a scientist who has just discovered the powers and is learning how to use the technology. If he makes a narrow mistake, it could have complex results for everyone else. Because it is being used increasingly in different industries and is still changing to meet basic client needs, it is more important than ever to know how to use it properly. In many use cases, you need more understanding of deployment phases to reach the full potential of the technology.

Effective Traits of Enterprise Blockchain Implementation

Every project will have different outcomes depending on its use cases. As an alternative, each project follows its own set of implementation processes. Below are some of the effective traits of enterprise blockchain implementation.

1. Identify the Use case

The first step is to identify and organize your needs. Understand the exact problems you want to solve and confirm whether implementing blockchain solutions will help to solve them. It is recommended to start with a pilot project, analyze the results, and then implement them on a larger scale.

• Create A Proof of Concept

Once you identify the use case, it is essential to create a valid Proof of Concept (PoC). PoC is nothing but a strategic procedure to evaluate how blockchain would be possible for the business. Understanding the planning phase and evaluating steps direct you to create your Proof of Concept. Here are the steps to create a proof of concept.

• Develop a set of Guidelines

To explain the business project

• Create a prototype

To involve design, code, sketches

• Test the prototype

To understand the business happenings

With a well-defined Proof of Concept, the project can automate and simplify actions without human interaction. A Proof of Concept could also reveal many valuable benefits for end users compared to competing technologies.

2. Choose the Blockchain Platform

There is a need to acknowledge that technology is not widespread. The deployment of any system would require a blockchain network. Most companies assume that implementation methods involve a single technology that can be used to create a solution. Businesses can only get the most important benefits by choosing the right one, even though it has many benefits. However, by accessing the capabilities of a network, you may evaluate whether it is the perfect option for a particular application.

Some of the popular blockchain platforms are

• Ethereum

Determines the potential growth rate of the business

• Quorum

Eliminates data tampering in business transactions

• Hyperledger Fabric

Creates private blockchain applications for businesses

• Corda

Make direct transactions through smart contracts with full security

When choosing a platform whether the technical team is organized and whether they have an open source station. The platform should suit your budget too. However, the transition from a successful proof of concept to full-scale implementation is challenging for both governments and enterprises. Therefore, it is necessary to consider these factors:

• Gaining a general level of understanding of technology
• Creating a strategy and vision for blockchain technology usage
• Engaging with regulators to establish clarity and stability as well

3. Choosing the right consensus protocol

In a distributed network, consensus protocol alone can create an indisputable system of agreement between the devices. Take a look at the wide variety of consensus protocols available.

• Proof of work

Counters cyber-attacks such as DDoS and validate transactions to produce new blocks

• Proof of Stake

The developer is selected for the subsequent block by combinations of random qualifications such as age, wealth, and performance.

• Delegated proof of stake

Ensures transaction approvals as a fixed set of miners are involved in the activities.

• Byzantine Fault Tolerance (BFT)

Achieve consensus by depending on the same value even when the network components are unresponsive.

4. Build an Ecosystem

This technology is most effective when stakeholders are involved. Creating a new industry ecosystem, however, requires a community within an organization. Because they can understand the technology’s potential and improve standards and rules. Here are the steps to build an ecosystem.

• Start with smaller ecosystems

Build a technology with a few stakeholders who can expand it later on.

• Find a community

Broaden your network through blockchain consortia and explore more industry applications.

• Conduct a competitive analysis

Analyze competitors and look for partnership potential.

5. Determine rules of engagement and navigate uncertainty

The new blockchain ecosystem should solve the organization’s issue and comply with the processes. Privacy implications, compliance, and cybersecurity issues must be addressed. Or else, ground processes might be forced to get redesigned. PwC suggests that businesses must comply with emerging blockchain policies and best practices while monitoring the evolution in regulations. Here are the key factors:

• Confront risks

Involve the cybersecurity, compliance, and legal team in the blockchain development team while building a framework.

• Consider privacy implications

Invest in data and its processes. Data immutability is an important feature of the technology and it should fit into privacy strategies like GDPR.

• Use current regulations

Stay smart. Current regulations are applied in different ways. So, stay smart to adapt and remain compliant.

Conclusion

As new technologies emerge, project success criteria have been changing a lot. For many companies that use it for the first time, blockchain remains a question. However, the project’s architecture might reveal the features of a successful implementation. The review of implementation procedures gave an overview of the best ways to build projects on the enterprise blockchain. Before you use technology, you should learn more about how to deploy it and the best ways to keep track of your project’s success.

When you consider our enterprise blockchain company to assist you in building market-specific permissioned blockchain apps, you’re on the right track. With Gyan Consulting you’ll be able to manage costs more efficiently and establish a standard infrastructure.