Blockchain implementation and DLT (Distributed Ledger Technology) integration are multi-step processes that demand careful preparation. But this integration may have an impact on how competitively your company will be in the future. The use of hybrid or private blockchains, which can be appropriate for businesses across all industries and be in line with each business owner’s preferences, is just one of the countless possibilities that blockchain technology — and fintech in general — bring to businesses. Public ledgers are just one of these possibilities. The flexibility of blockchain in your company, which is one of its main advantages, may make DLT the best option for companies that want to remain competitive over the long term.
Steps to take to incorporate blockchain technology into your business are:
To properly create a custom solution for your organization when integrating blockchain with a regular firm, additional technical knowledge is undoubtedly necessary. Fortunately, B2B companies are developing more user-friendly solutions over time to make it simpler for business owners to take use of blockchain technology. Some major corporations are also implementing blockchain-as-a-service (BaaS). One such corporation is Amazon, which makes use of the Ethereum and Hyperledger private blockchain technologies.
Let’s look at all the processes to consider, starting with the decision of the blockchain to employ.
The first and most important stage is to design a blockchain-based solution for your company. This is so because you must first identify a specific use case that will benefit your company. DLT is utilized not only for financial transactions but also for safer database creation, improved supply chain management, and general supply chain management. They are safer as a result of technology’s dispersed nature, which prevents single points of failure. The primary component of this initial stage of the process is the selection of the use case.
2. Choosing the blockchain
There are a ton of possibilities available, but even here, the initial design and the selection of the use cases that are best for your organization can undoubtedly affect your pick. Certain projects might call for more technological flexibility, quicker transactions, or cheaper prices.
The decision between private and public blockchain solutions is also quite important, and your preference for a certain consensus method may have a significant impact on your decision.
3. Implementing tests
It would be quite expensive to create a blockchain from start or to test the suitability of pre-existing solutions for your company through trial and error. This is especially true if you had to select a blockchain that charges fees for every transaction you want to add to the ledger.
Thanks to testnets that don’t need you to use actual resources, you may easily decide to test your solutions before implementing them.
4. Launching a Beta version
You can begin making your solution available to your clients or prospects, just like with any other form of project or product. Understanding potential errors or segments that need to be improved depends on this stage. You can create a minimal viable product (MVP) at this stage, which can assist you go on to the following stage.
5. Marketing & Fundraising
The outcome of this phase can make or break your project.
The value of establishing a solid community is more relevant than it would be for a more conventional project or product, particularly when discussing blockchain-related projects.
Actually, compared to other technologies, blockchain is still not as widely used. It rarely helps that it’s frequently connected to cryptocurrencies; in reality, cryptocurrencies are stigmatized, frequently as a result of fraudulent schemes that profit from the inventors’ ability to remain completely anonymous.
Because of this, it’s crucial to rely on communities that can comprehend your initiative and see its true value. Strong communities can also draw funding to help you carry out your initiative.
Initial Coin Offerings, or ICOs, are a very popular tactic in these situations: project creators give investors a specific number of cryptocurrencies connected to their project, and typically “freeze” them for a specific period of time to prevent a sharp decline in value.
A successful campaign needs thorough documentation, applicable use cases, and a strong commitment from the founders to foster trusting relationships with investors as well as a solid community for their ideas. This brings up another issue, which is skills. Benefit from the expertise of specialists if you want to integrate blockchain into your organization, especially since, as we mentioned at the beginning, blockchain demands significant technical abilities.
6. Launching the final project
The last step is launching your finished project or product to make it accessible to a larger audience when all previous procedures have been finished. The easier your solution is to use, the better!
The final piece of advice is to always keep in mind this type of limit when creating a public project because legislative frameworks for blockchain-related projects and cryptocurrencies vary depending on the country in order to develop a solid business model.