The scope of blockchain technology implementation is so much more than the foundation for cryptocurrencies. It’s a method for tracking and maintaining transactions using technology that is gradually proving to be transforming in nature. Even though the technology is still in its infancy, an array of industries are keen on utilizing it for a host of purposes.
By definition, Blockchain is a decentralized ledger management system which stores information across a wide network of nodes (computer devices) and helps users track and view transactions that take place within a network.
Consequently, there is no need for a centralized repository of information and financial data with Blockchain. The blockchain technology has eliminated the need for banks to confirm whether or not a transaction took place. The bottom line of blockchain technology is that transactions that are once stored in it become irreversible and secure.
Let’s see a few areas where the blockchain technology is bringing out sophisticated and transforming applications.
A Few Blockchain-based Applications in Business
Blockchain application development has become a rage with businesses in various industries.
Here are a few industry-wide applications Blockchain is supporting:
- Financial Audits – With Blockchain, you have a permanent record of all transactions that took place ever. This allows users to have an easy-to-follow paper trail for audits within enterprises and governments. Blockchain inherently guarantees accuracy and eliminates the need to pull records from a host of disparate sources. The more records and transactions you store in a blockchain solution, the more you have to audit.
- Quality Assurance – Blockchain also has applications in the supply chain industry, where it can be used to track where exactly in the chain something went wrong. This is especially useful when concerned with food products and eatables. If foods and beverages are tracked throughout their journey through a blockchain-based system, it can get easy to identify where an item came from and how many days it spent in transportation, and so on.
- Smart Contracts – The most famed benefit of blockchain is in helping organizations handle vast amounts of transactions that run through supply chains, automatically. Smart contracts are a way for companies to embed code and logic into a blockchain network to enable to handle transactions automatically.
- Voting – An interesting application of blockchain technology is in carrying out voting. Just like a cryptocurrency, votes can be treated as a similar entity in a blockchain network, and their movement can be tracked inducing authenticity in the entire process of voting. When installed on a working blockchain, it can be said for sure that the votes cast using a blockchain based application cannot be altered or messed with.
- In Securing IoT applications – Internet of Things is the next boom in the blockchain ecosystem. For its inherent lack of security and high risk of data and application breach, companies are looking for ways to introduce security into IoT-based applications through blockchain integration. Blockchain-based IoT applications would be more secure given the transparency and incorruptibility of the foundation technology.
Explore a few more exciting blockchain applications and solutions here.
Strategizing Blockchain Implementation for Businesses
Building a successful blockchain strategy requires incredible insights and expertise into the technology and a keen grasp of the project requirements. It also makes sense to gauge the impact of blockchain on any aspect of business or organization before embarking on the strategizing process.
Blockchain implementations may not all be the same. One blockchain project might differ from another in the way consensus is achieved within the network, for instance. Consensus mechanisms define the rules by which ledgers would be updated in the system. This and many other nitty-gritty of implementation need to be finalized when undertaking blockchain application development.
Blockchain projects are no cakewalk. The fact is evident from the success rate of blockchain solutions on GitHub. Out of a whopping 86,034 total projects in the network, only eight percent are actively maintained, suggests a study by Deloitte.
This led us to explore the mistakes blockchain application developers make so that blockchain projects fail or get stalled so frequently.
Beware of These Common Mistakes Implementing the Blockchain
Here are the top blockchain mistakes enterprises and organizations make when developing applications with the technology:
- Misunderstanding the purpose of the technology – Blockchain is meant to add trust to an otherwise risky business application. But, many companies today enter the blockchain implementation world only for the sake of it. These organizations then make the mistake of implementing blockchain where it is not necessary to. It is important to hold in mind the core intention and reason for the existence of blockchain technology. Then, you can find a use case where blockchain can add transparency and credibility to a system. This would be a successful application of the technology.
- Assuming technology maturity and scalability – Very early on in its growth, companies had assumed the blockchain technology as ripe for use. However, only Bitcoin and Ethereum are the proven and established use cases of blockchain at a large scale. Therefore, it is important to consider whether or not the technology is mature for use in the application you are planning. If scalability is a requirement, it is essential to gauge how it can be introduced in the implementation.
- Underutilizing the technology – Many business executives see blockchain for only one of two use cases- either as a database or some sort of a storage mechanism. For a successful blockchain implementation, it is vital to see the technology for what it is worth- change systems and processes once and for all. Only if CIOs are ready to completely do away with centralized systems should they invest in the blockchain.
- Failing to acknowledge the learning curve – As with any new technology, the blockchain comes with a learning curve. And the persistent mistake top blockchain mistake companies make is failing to incorporate it within the development project. There is a need for employees to try their hands on the technology, even if that can be made possible with a pilot project. The idea is to empower the internal development team or the outsourced blockchain development team with the challenges that crop up in blockchain integration and development and how they can be tackled.
- Overestimating what’s possible today – Many of the applications of blockchain are not a thing of the present but the future. Companies starting a blockchain project must not confuse blockchain’s future use cases with those possible today. Overestimating what can be done with the technology is another mistake businesses make too often. Much R&D is needed for enterprises to get to a level where they can realize any application using the blockchain technology.
- Expecting quick ROI – Gartner predicted that nearly all blockchain projects would fail within 24 months. And, that can very well be the time it takes for a blockchain application to start delivering ROI. It is an honest blockchain mistake for enterprises to declare failure too soon, without allowing the technology to yield a significant ROI over time.
- Creating an org-wide project scope – While blockchain has been described as revolutionary, it is not something that can support a company-wide initiative. At this point, blockchain might only constitute less than five percent of your digital transformation effort, Gartner says. Therefore, don’t base a lot of expectations on blockchain and you might do just fine.
Avoid these common mistakes implementing the blockchain to reach the point of success with blockchain integration and implementation.
Partner with a Leading Blockchain App Development Company
Another factor that can add to the success or failure of your blockchain project is who you work with to create your blockchain solutions. CDN Solutions Group is recognized as one of the top blockchain app development companies for 2018.
We take your project from inception to deployment. Implementing blockchain in business requires sophisticated knowledge of the technology and a keen eye into the business processes. Our expert developers comprehend your business needs and carve the right path for you to implement blockchain.
With a working experience of nearly two decades, our specialists have gained significant insights into all leading industries, allowing us to work with an edge over our competitors.
We have already helped companies in the finance, insurance, healthcare, logistics, and manufacturing industries with our proficiency in Fabric, Hyperledger, Ethereum, Smart Contracts, and Multichain.
Need an off-the-shelf solution or one customized to your specific needs? CDN Solutions Group can help you with both. Enable reliable currency exchange through secure wallets, install collaborative commerce solutions, or track inventory throughout supply chains.
CDN Solutions Group has the capabilities to introduce security, transparency, and decentralization to your enterprise solution.
Explore our blockchain app development capabilities here.