How to Implement Blockchain Technology from Scratch

Apr 22, 2022
8 min read

Many of you are keen to know how you can use and benefit from the blockchain for your businesses and reap the benefits. We'll help you understand the essence of blockchain technology and walk you through the steps of implementing it from the scratch.

The main aim of blockchain technology was to facilitate the exchange of digital currencies. However, the tech-savvy world quickly understood that blockchain may be used in a variety of ways.

Blockchain technology makes perfect sense for organizations in a variety of industries. If you're still undecided about whether blockchain is the appropriate fit for your company's needs, here's a handy guide to help you decide.

For now, you may be wondering how to apply blockchain to your own business and reap its benefits. Such issues are common when new technology is introduced, so don't worry; you're not alone. That is why we are here to walk you through the blockchain implementation process step by step.

How to Implement Blockchain?

Businesses must first determine what the best and most relevant use of blockchain technology is to turn blockchain into a profitable asset rather than an expensive liability.

As a business leader, though, you must first acknowledge that blockchain is here to stay. You can't ignore it any longer. On top of that, it offers practical solutions to many of your day-to-day business problems. Implementing Blockchain is the greatest option. Let's get started with it!

Explore Opportunities

Don't you already have enough inspiration? There are currently several blockchain implementation examples and applications that can serve as inspiration.

As a result, any new user must assess the effectiveness of current uses and select the optimal template for deployment in their own business. You should look into the current pilot blockchain use cases that are being used in the market.

Banking

The banking industry is the most prominent example of blockchain implementation. Because of the numerous security breaches that online banking systems have had, and because one of the most remarkable qualities of blockchain technology is premium security, blockchain implementation was an ideal alternative to online banking systems.

As a result, certain institutions have been compelled to use blockchain technology to maintain client trust. As a result, the precision, speed, and security of transactions and internet banking, in general, have improved. As a result, banks benefit from this during audits.

Simply put, blockchain deployment provides financial organisations with greater openness and clarity. This is why the majority of banks are enamoured with blockchain technology.

Insurance

This is a well-known blockchain implementation use case for your business. Data openness is critical for every insurance company. The use of blockchain technology helps to streamline the sharing of such data while also ensuring that it is transparent.

Smart contracts are in charge of this. It verifies contract terms and evaluates whether a specific event or condition falls under the terms of the smart contract in question.

As a result, the customer receives the claimed amount promptly and on merit. Following that, records are kept and updated at breakneck speed.

Blockchain, of course, assures that the entire process is safe and resistant to unauthorized hackers. This is why, in the last year, there has been a significant increase in blockchain insurance applications as well as total deployment in the life, healthcare, title, and auto insurance sectors.

The following are some well-known blockchain-based insurance companies:

  • Kasko2Go
  • FidentiaX
  • Everledger
  • Etheric

Many more can be found, as blockchain technology is being adopted by many insurance businesses.

Healthcare

It's important to note that the healthcare profession necessitates precise documentation. Furthermore, because such patient data may contain sensitive information, their security is of utmost importance. therefore, if you want to use blockchain in the healthcare supply chain, you should concentrate on pharmaceuticals.

While blockchain technology efficiently meets these needs, it also allows for the incorporation of online payment systems. This can also assist hospitals and medical service providers in forming relationships with health insurance companies to speed up insurance payments. Many pharmaceutical companies have already committed money to implement blockchain in the supply chain. As a result, the decision to use blockchain technology will benefit both the implementer and the clients.

Real Estate

This is yet another great example of a blockchain implementation use case. With the advent of digital record keeping in the real estate industry, hackers pose a huge threat. These include changing record details as well as simple faults like poor record-keeping, incorrect documentation, and so on. This could lead to a significant amount of public losses. Thankfully, blockchain deployment helps to eliminate or at least reduce the margin of error. This, in turn, benefits the user's business's reputation as well as its clients.

Blockchain Implementation: The Steps

Here are the key steps you need to take for implementing blockchain.

Start with A Use Case

To start, this implementation step is the most crucial step in the blockchain implementation process. You must first investigate, explain, and organise your Blockchain needs before you can identify a use case.

You'll need to ask yourself questions like "why exactly do I need a blockchain?" when determining your use case. "How does a blockchain implementation benefit my company?" "If I decide to use a blockchain implementation, what are my goals, objectives, and targets?"

These and other related questions can assist you in better understanding why you require a blockchain implementation and how you may proceed with your objectives.

The answers to the questions will clarify any doubts about your decision to implement blockchain technology. When identifying a use case, keep in mind that incremental steps are safer, to begin with.

As the picture becomes clearer to you, you must choose some relevant blockchain use cases to research, examine and extensively explore before incorporating them into your blockchain implementation.

The Need to Create A Proof of Concept (POC)

The next step in implementation is to construct a valid Proof of Concept after you've identified the various possibilities for your use case. If you're wondering what POC stands for, it's a strategic strategy to assess whether or not a blockchain implementation is practical for your business.

Before you start working on your Proof of Concept, you must first grasp the tight planning phase that comes before it. Again, you'll need to think about some pertinent questions to help you evaluate your Proof of Concept step by step.

These questions would be dependent on the nature of your organization and what it necessitates. You'd have to think about questions like the competition and your company's challenges.

"What business challenge am I trying to solve through this blockchain implementation?" is one question you might be contemplating. "What are the positive outcomes I'd like to see in my company?" "How can I use blockchain to transform my business?" and so on.

It's critical to emphasise that "direction" is critical in developing your Proof of Concept. You should be able to appreciate the possible consequences of your actions. In other words, Your acts and conclusions should be tactical and intentional.

The following are the steps to create a Proof of Concept:

  • Create and follow a set of guidelines that define the extent of your business's endeavour.
  • You must put your prototype to the test.
  • Evaluate your MVP using only the most important top qualities. A product that meets the bare minimum of requirements is referred to as a "minimum viable product."

Choosing a Blockchain Carefully

It's vital to be methodical and cautious when selecting a blockchain platform for your business. This is a strategic step in which you must consider factors such as your budget and thorough research.

You should be aware that there are several blockchain platforms from which to choose when choosing a blockchain for your organisation. Below are some of the most well-known blockchain platforms;

  • Ethereum

It is mainly utilized in the creation of innovative contracts. Many businesses are already utilising it to forecast their future growth rates.

  • Quorum

Quorum has been used by many companies as part of their blockchain implementation. By letting businesses to perform transactions on the platform, Quorum effectively eliminates data tampering in commercial transactions, assuring optimum security and transaction privacy.

  • Hyperledger Fabric

Hyperledger Fabric is a blockchain platform that enables businesses and organisations to build private blockchain applications. An expert in Hyperledge would be able to create technical solutions that would help your organisation grow by implementing blockchain technology.

  • Stellar

Stellar is a blockchain platform that is used to create blockchain applications for businesses and organisations.

  • Open Chain

The main purpose of this blockchain platform is to use blockchain technology to improve every aspect of human resource management in your firm.

  • Multichain

This blockchain platform, as its name suggests, may be used in a variety of industries, including healthcare, banking and finance, human resources, education, e-commerce, retail etc. It is mostly utilised for professional human resource optimization in your company.

Creating a Blockchain Solution and Putting It to the Test

It is recommended that you continue to research current blockchain technologies to select the optimal one for your blockchain implementation. This procedure entails assessing several factors, including:

  • The blockchain's infrastructure
  • The technology's quality; that is, does it provide valuable security and consensus? It's also important to know if it works with both public and private blockchains.
  • Is it compatible with multichain and other various platforms due to the technology's vastness?

One of the most essential aspects of blockchain technology is the functionality of smart contracts. Smart contracts enable businesses to undertake crucial transactions without the involvement of a third party. You simply need to add your own set of rules to the contracts.

The transaction process will be more automated, transparent, and fair as a result of this. The contract's regulations must be followed by all contract parties. Many businesses have chosen blockchain technologies because of the automatic nature of smart contracts.

As a result, you'll need to create smart contracts as part of your blockchain solution to manage your business transactions. Testing your blockchain implementation necessitates testing apps on the test network, as the case may be, to ensure that it is functioning properly.

Run and Manage the Network in Production

To accomplish this, you must first create your block. Remember that this block must contain all of the properties of the chain. This step essentially prepares the basis for the collection f data.

The encrypted token, often known as cryptocurrency, enters the picture at this stage. This token would be used to activate the power required to ensure that the nodes' communication would stay persistent.

Activate the Blockchain

All that's needed now is to activate a blockchain application after the network has been set up and managed. This is a ready-to-use application server. Each of your applications would have to be hosted on the main blockchain in this case.

It is advised that you initialise hybrid solutions, which are apps that are both on-chain and off-chain entities, on the cloud server.

Selecting the Right Consensus Protocol

  • Proof of Work
  • Proof of Stake
  • Delegated Proof of Stake
  • Byzantine Fault Tolerance (BFT)
  • Proof of Weight

Building an Ecosystem

When a large number of stakeholders become involved in the blockchain, an ecosystem becomes necessary. The ecosystem will work as part of the larger blockchain community.

It will help to increase public awareness of the blockchain industry while also promoting corporate trust. Stakeholders must agree on the following issues to create an ecosystem:

  • The terms of engagement
  • How can benefits and costs be allocated fairly?
  • The governance structures that have been put in place

Having a Well-Thought-Out Design

Every blockchain expert will agree that the construction of the blockchain demands meticulous planning. To ensure that any organizational flaws are promptly remedied, the design must be intentional.

Working your way with Uncertainty

The future of blockchain laws is still a big question mark. This is why it is critical to monitor the updating of these regulations and to actively participate in the formulation of these policies.

Challenges in Implementing Blockchain

The blockchain technology sector, like any other industry, has its obstacles and limitations to a great extent. The following are some of the most prevalent issues that stakeholders confront while implementing blockchain technology:

Blockchain Developers with Insufficient Experience

This is a big issue with the application of blockchain technology. Smaller businesses are being compelled to give competitive incentives to recruit and retain the industry's limited competent blockchain specialists due to the industry's low influx of experts.

The Scalability Issue

This is yet another common issue with blockchain technology applications. Many blockchain developers are currently confronted with resolving the conflict between keeping DLT's traditional benefits while also guaranteeing that its reach is large and fast. Indeed, the blockchain technology industry's total potential is currently mostly unscalable.

Security Concerns

This challenge in the blockchain is, without a doubt, the most troubling aspect of blockchain technology. It's worth noting that blockchain technology was built on the foundation of security. The blockchain business, however, is subject to significant hacking threats as the 51 percent assault theory's actual ramifications grow.

Conclusion

As blockchain is implemented, there will be a variety of changes, causing it to be challenging to operate. Make sure your user interface is easy to use, yet economical to operate. Regardless of any blockchain implementation challenges, we are convinced that this article can significantly guide you in realizing your vision in the blockchain business.