To implement blockchain technology, you need to know the proper sequence of steps to follow. You may have a viable blockchain use case but without a clear understanding of the appropriate steps, you may not achieve the desired end.
There are four stages in implementing blockchain technology. They are general and apply in all cases despite the sector of the economy that your organization operates in. These stages are:
- Identification of a blockchain use case
- Proof of concept
- Field trial
- Full volume roll out
Identification of a blockchain use case
The first step in implementing blockchain technology is to identify a use case, which is a system analysis methodology used to identify, clarify and organize system requirements. It involves determining if blockchain technology would be appropriate in the particular circumstance. While the technology has numerous applications with some still being discovered, there are situations where it will be most suitable. In other situations, it may be unnecessary. For example, where an immutable record of transactions is needed or there is need to eliminate a third party intermediary, blockchain technology would be appropriate. Generally, a use case is made up of several possible sequences of interactions a system and users in a certain environment and for a particular goal.
Proof of Concept
Proof of concept is documented evidence that a proposed application of blockchain technology will be successful. Developing a proof of concept can help you identify potential technical and logistical issues that may interfere with the implementation of blockchain technology. It provides an opportunity for your organization to solicit internal feedback about the proposed use of the technology. This can reduce exposure to unnecessary risk and provide an opportunity to stakeholders to assess design choices in the early stages of the system development cycle. A proof of concept plan should demonstrate how the implementation of blockchain technology will support your organization goals.
Once you are satisfied that your organization can implement blockchain technology profitably and with minimal flaws, you should conduct a field trial. This involves piloting the blockchain project. If your organization has several branches, you could start with one or two branches to test the viability of the technology. If it’s a single branch organization, you could have phase one where you implement the technology on a small scale for a particular period of time. This leaves room for reverting to the previous system should the blockchain based system prove unprofitable.
Full Volume Roll out
You only implement blockchain technology fully after the trial is successful. You must also address all technical flaws that could affect full roll out. Additionally, you must ensure that you have adequately trained staff as well as appropriate hardware and software capabilities that will handle the blockchain based system once you implement it in full.