Blockchain has been said to reduce transaction costs because it eliminates a lot of steps that traditional processes take. The technology makes processes cheaper by removing the middle man the way and in speedy transactions that reduce delays and consequent costs. With such results, many businesses are looking into ways they can incorporate it into their workflows and processes.
Blockchain in business is quickly becoming a reality through enterprise blockchain. But what does that mean? How can you implement enterprise blockchain in your company? The simple answer is you can. But you need to know where to get started and what you need by doing general blockchain, industry level, crypto, tokenomics, and multi-asset marketplace consulting.
According to research, 55% of the applications in the healthcare industry will be ready for commercial adoption by 2025. Other industries are following suit. This article shares the simple steps to get you started in enterprise blockchain and reap the many benefits the technology can bring.
What Is an Enterprise Blockchain
Blockchain is a decentralized digital ledger technology that records transactions across many computers so that the record cannot be altered retroactively without altering all subsequent blocks within the network The ledger is stored in “blocks” linked together and, therefore, the term blockchain.
The technology relies on Distributed ledger technology (DLT) that allows people who don’t know each other to work together without the need to create trust among themselves to complete transactions. This is because all transactions on a blockchain are transparent and secure from tampering because they’re encrypted with cryptography.
While blockchain sounds exciting and useful in various ways, not all companies are ready to invest. That’s where an enterprise blockchain comes in. An enterprise blockchain is a private version created for businesses and organizations among trusted parties.
Define a Use Case
Consulting with experts from reputable companies like PixelPlex enterprise blockchain development can help you identify the right use case for your business.
You should ask questions such as:
- What problem am I trying to solve?
- What opportunities exist with blockchain?
- Do I need it in my business?
Once you have defined your use case, you can evaluate potential solutions based on scalability and compatibility with your existing systems and processes.
Identify Proof of Concept (PoC)
After defining a use case, you also have to identify your blockchain project’s real-world case use and application. You use PoC to determine if the concept will work and to gain insights into how it can be improved.
The PoC process for blockchain technology is similar to that of any other new technology or product in the market. A business should determine what problem they are trying to solve, how much time and money they are willing to spend on this project, and what level of risk they are comfortable with.
Choose a Blockchain Platform
While there are many different blockchains, some have more features than others. Some can only be used for particular applications or have a limited number of transactions per second (TPS). Others have more advanced security features, such as high-speed signatures. Be sure to select a platform that meets your needs.
You can either choose to:
- Develop your blockchain platform: If you want complete control over the design and functionality of your solution, then it makes sense to build it from scratch using open-source tools such as Hyperledger or Ethereum.
- Use an Existing platform: Many companies have already developed proofs-of-concept using blockchain technology. These platforms range from private permissioned blockchains to public permissionless ones like Bitcoin or Ethereum.
This might be the easiest way to start your project if you want your solution to use a specific platform. However, there is little flexibility in terms of customization and scalability when using existing platforms instead of creating your own from scratch.
Here are some popular networks you can choose to work with:
- Ethereum: Enterprise Ethereum is among the most widely used blockchain platforms today. This open-source platform is also known as the smart contracts, tokens such as Non-Fungible tokens (NFT) centralized Finance (De-Fi) blockchain.
- Hyperledger Fabric: Hyperledger Fabric is another blockchain platform that has become quite popular. It’s considered highly secure, verifies the identities of members, enables chain code and smart contracts, and automates transactions.
- R3 Corda: Participants have to identify themselves before joining the network, making it very secure and a good platform for enterprise blockchain. It’s also fast with high privacy.
Use the comparison model to help you pick the most suitable platform for your use case.
To implement enterprise blockchain in your business, you must identify the stakeholders whose needs will be addressed by the project.
These stakeholders could include members of the executive team, IT staff, and finance department members. Once you’ve identified these people, you’ll need to make sure they’re on board with the project before moving forward with any further steps.
Sometimes the stakeholders are participants outside the organization, especially in the case of a supply chain where you need to collaborate with multiple entities.
Choose a Consensus Protocol
Consensus protocols are what make blockchains work. They are rules determining which transactions are valid and which should be rejected during mining or validation processes.
There are many consensus protocols available in the market today, including proof-of-work (PoW), proof of History (PoH), proof-of-stake (PoS), and delegated proof of stake (DPoS).
Build the Ecosystem
To build an enterprise blockchain solution, you need to create an ecosystem that attracts users and incentivizes them to participate in the network. This step aims to create a community that will buy into the platform’s vision and helps it grow.
Testing and Deployment
Testing is an essential step in the blockchain implementation process. It can help you identify potential problems with the network and gain insights into how the system will perform.
Testing also helps ensure your blockchain is up to par with industry standards. For example, if you want to implement a private blockchain, specific requirements must be met before it can be considered enterprise-ready.
- Transaction speed
- Scalability and flexibility
Blockchain technology at the enterprise level is catching speed, and many businesses are finding it important to adopt it in some way in their processes.
As awareness and knowledge of this revolutionary technology grow, so will the number of small implementations. The best way to start is by consulting with the experts to get more understanding, including the steps for designing tokenomics and other blockchains enterprise-related information.