You could be wondering how to Implement blockchain technology now that everybody is talking about it as the next big thing. The increase in the number of blockchain enthusiasts has not helped bring the much needed clarity to the mainstream adopters who may have more questions than answers. Here, we give you the “how” so that you can be equipped to tap into this great technology.
Steps to Using Blockchain Technology Successfully
- Identify a Use Case
The first step to using blockchain technology is to determine whether your business or the purpose for which you propose to use the technology falls within the possible use cases. Remember you do not want to incur the expense of integrating blockchain into your operations unless you anticipate some benefits from doing so. An analysis of the principles on which blockchain works reveals that a good use case will likely fall into any of the following categories:
- a process that currently requires a centralized authority or a third party intermediary between the transacting parties;
- where a process requires the keeping of an immutable record of the transaction;
- a process that requires a low amount of trust between the parties meaning that it can benefit from the trustless consensus provided by blockchain; or
- where there will be an operational improvement by performing more rapidly and more securely than the existing system.
- Experiment on Small Scale
You should let experts test the systems for any proposed application of blockchain technology and seal any loopholes. Trials are critical in adopting a new technology because you have the opportunity to test the effectiveness of the proposed system and how it compares with the existing one. After the trial, you may realize that the new system is not worth adopting probably because it will not result in substantial benefits or will be manifestly expensive to implement. Every organization that has proposed to use blockchain technology has had to try it first. For example, different governments in Europe have conducted blockchain trials on different use cases as follows:
- Estonia- protection of digital health records
- Sweden- property transactions
- United Kingdom- monitoring welfare payments
Elsewhere, it was reported that Russia had decided to apply blockchain technology for voting in referendums but would start with Moscow. Similarly, American International Group Inc. IBM and Standard Chartered Bank plc. earlier this year announced that they had successfully PILOTED the first multinational, “smart contract” based insurance policy using blockchain.
Once you are satisfied that the proposed use will result in greater efficiency, you can then implement blockchain technology on a large scale. You must be satisfied that you have adequate resources including well trained personnel to handle the new system. If the trial reveals any deficiencies in the proposed system, you may need to postpone any large scale adoption until all issues are ironed out. You do not want to put your money into a project that cannot be sustained.