Blockchain Implementation: A Complete Guide

How to Implement Blockchain: Summary

The purpose of blockchain implementation is to allow businesses to make use of blockchain-based solutions, such as those that permit the decentralized storing and processing of data, ensure the integrity and immutability of that data, and automate business processes in efficient ways. Full transparency, top-tier security, and lightning-fast data and transaction processing are all guaranteed by blockchain software.

Key project steps

This process includes a feasibility study, business case creation, blockchain concept development, project scoping, proof of concept creation (if desired), blockchain development services solution design, technology stack selection, development, deployment, integration, after-launch support, and evolution. These will all add to the time it takes to implement as well as maintain your blockchain.

Team

The team you will need to put together your blockchain includes a Project Manager, Business Analyst, Blockchain Architect, Blockchain Developer, User Experience (UX)/User Interface (UI) Designer, Front End Developer, Back End Developer, DevOps Engineer, and Quality Assurance Engineer. Keep these positions and their salaries in mind when considering the cost of the project.

Timelines

Building a blockchain can take anywhere from 4 to 12 months or more, depending on the complexity of the solution.

Cost

The overall cost will be determined by the strategy selected for the development of the blockchain network, as well as other cost factors such as your team, emphasizing the importance of strategic planning and resource allocation in project development. This underscores the significance of leveraging blockchain development services to optimize efficiency and cost-effectiveness.

Average payback period

It will likely be 12 to 18 months before you see payback on your project.

Types of Blockchain Solutions

Blockchain networks

Blockchain networks provide decentralized ecosystems that are secure and scalable, whether they are permission-based or permissionless, with as little downtime as possible.

• Blockchain for payments
• Blockchain for supply chain
• Blockchain for personal health records
• Blockchain for provenance and traceability

Blockchain-based transaction platforms

Blockchain can also manage multi-party transactions that are open, quick, and secure on a decentralized network.

• Decentralized marketplaces
• Decentralized finance (DeFi) platforms
• Non-fungible token (NFT) marketplaces
• Security token issuance platforms

Blockchain-based assets

Cryptocurrencies that can be programmed to represent anything from money to assets to services to voting rights are being developed on blockchain.

• Cryptocurrencies
• Tokenized assets
• NFTs
• Crypto wallets

Approaches to Blockchain Technology Implementation

The foundation of any blockchain application is the underlying blockchain network. Each of the two primary methods for establishing a blockchain network has its own set of advantages and disadvantages. The needs of the business and constraints on the available time and resources will determine the best strategy.

Building a custom blockchain from scratch

Ideal for: Innovating blockchain businesses and financial technology firms. Once this foundation is established, more architectural elements can be added to produce the necessary blockchain solution.

Pros: Opportunity to put into action a blockchain solution that is adapted according to your company’s demands.

Cons: Creating anything truly unique is a laborious and expensive process.

Forking an existing blockchain protocol and creating a new blockchain

Ideal for: Corporations interested in using blockchain technology for internal use.

The foundation of any blockchain network is the public, downloadable code of a proven blockchain protocol (e.g., Ethereum, Hyperledger Fabric). A new blockchain network can be built off of an existing protocol with custom features and regulations to run autonomously and host your blockchain applications.

Pros: When compared to a custom solution, our blockchain development services process is far cheaper and may be completed in half as much time.

Cons: There does run the possibility of making a poor decision while selecting a blockchain technology to fork.

What Are the Steps in Blockchain Implementation?

The specifics of the operations that need to be covered by the solution will determine how long it takes to implement blockchain, as well as the methodology that will be taken. Below, we will discuss the typical procedures that EvaCodes follows when implementing a blockchain.

Feasibility study

Duration: 2–4 weeks

The blockchain’s potential in any given business setting must be evaluated, despite the fact that the technology’s general and use-case-specific benefits are persuasive. Professional experts from EvaCodes may assess whether or not a blockchain would be cost-effective. We collaborate closely with the project’s stakeholders to determine the full scope of the firm’s blockchain requirements, and then we present the organization with a list of the concrete advantages that the technology may offer. We also perform extensive analysis to provide a high-level implementation cost breakdown and return on investment (ROI) calculations.

Building a business case

Duration: 1 week

We perform the following to build a solid foundation upon which to build and manage your blockchain project:

• Determine what features and capabilities the blockchain solution must have and write them down
• Find where your needs and those of others conflict and work to overcome that tension
• Assess any risks that may arise, including those that could affect your ability to comply with applicable laws and regulations (such as AML/CFT and KYC, SEC, FINRA, GDPR, ISO 27001/27002, HIPAA, etc.)

Blockchain network conceptualization

Duration: 1 week

During this phase, you’ll make choices about:

• Proper blockchain network type (private, public, or hybrid)
• An optimal consensus protocol (e.g., PoS, PoA, etc.)
• Best practices for launching a blockchain system (building a blockchain from scratch or forking an existing blockchain protocol)

Project Scoping

Duration: 1 week

In this phase, EvaCodes establishes:

• The project’s goals, key deliverables, and key performance indicators
• The result of the project
• Time, effort, and money allotted for the project overall
• Project threats and their solutions

Proof of concept development

Duration: 1–2 months on average

Optional—If you need to verify the practicality of a novel blockchain solution or test the capability of blockchain to meet your unique business and technical requirements, we advise going the proof of concept (PoC) or blockchain prototype route.

Blockchain solution design

Duration: 1–2 months on average

• Detailed roadmaps: Create a comprehensive feature set for the blockchain system, making sure to include security options as well as a list of priorities for features using the cost-benefit analysis.
• Architecture design: Develop a blockchain solution’s components and interactions with a secure, scalable, and high-performance architecture.
• Integration planning: Make recommendations for the blockchain solution’s cross-chain interoperability patterns as well as preparations for connecting to third-party systems.
• Customer experience and interface design: Prioritize creating UIs for blockchain-compatible software (web, mobile, desktop). We will prepare mockups of the app’s UI and do design work on it.

Tech stack selection

Duration: 2–4 weeks on average

At this stage, EvaCodes can help with:

• Identifying the resources and blockchain technologies needed to implement the solution
• Evaluating technology and tool in the context of established business needs
• Choosing the best equipment and methods

Blockchain development

Duration: 2–7+ months, depending on the solution’s complexity

EvaCodes often employs the following procedures during the creation of a blockchain-based solution:

1. How a blockchain is implemented:
   – From scratch
   – Creating a new blockchain network by modifying the source code of an existing blockchain protocol
2. Innovating smart contracts for automating commercial procedures is a key aspect of smart contract development. Smart contracts can be used to facilitate a massive amount of different block transactions, highlighting their versatility and utility in various applications.
3. Building oracles on- and off-chain to facilitate information flow between smart contracts and third-party data providers.
4. Building up client-facing software (web, mobile, desktop) for interacting with the blockchain platform.
5. Building the blockchain solution’s back end, such as application programming interfaces and cross-chain interoperability protocols, so data may be aggregated, processed, and stored.
6. Testing and development.

Blockchain solution deployment

Duration: 1–2 weeks

The CI/CD pipelines are configured by the EvaCodes team to automate the testing of blockchain solutions in the test environment, the deployment of production-ready solutions, and the solution’s infrastructure and backup/recovery.

Integration with other systems (if required)

Duration: 1–8 weeks (depending on the integration complexity)

Here, the EvaCodes team works to improve the solution’s worth to end users by implementing and testing integrations with the necessary systems, such as those developed on other blockchains.

Support

Duration: Continuous

To guarantee the blockchain system runs smoothly over time, EvaCodes provides numerous services on a continuous basis. In particular, we can keep an eye on how the blockchain is doing, deal with any problems that arise, and adjust or add features as needed.

Make a Careful Selection of Your Blockchain Platform

You must exercise extreme caution when selecting a blockchain platform for your enterprise. Furthermore, you need to be proficient in making the most of blockchain applications. When making this strategic choice, remember to take into account data from extensive market research and your available budget.

If you’re trying to decide which blockchain to use for your company, consider some of the most well-known ones listed below.

Quorum

Many businesses nowadays have begun implementing blockchain technology with the help of Quorum. By removing the possibility of tampered data, Quorum makes it possible for businesses to conduct transactions in a safe and private manner. This type of blockchain technology will undoubtedly alter the face of commercial dealings.

Ethereum

Ethereum is being used by numerous companies at the moment to gauge their potential for growth through contract development on the platform. Like Bitcoin, Ethereum may be used to purchase and trade goods and services. Ethereum is revolutionary because its users can simply create applications that can run on blockchain-like technologies.

Stellar

Stellar can be seen as a blockchain platform that facilitates the creation of blockchain-based business applications. Stellar’s primary exchange mode automates currency conversion between a small set of supported currencies during transaction processing.

Hyperledger Fabric

Businesses mostly choose this blockchain platform to build internal blockchain applications. Those well versed in Hyperledger can design the infrastructure solutions that help organizations grow through blockchain use.

Corda

With Corda, you may conduct private and secure financial dealings directly through the use of smart contracts. If you hire a professional who is well-versed in this platform, they will be able to use it to build amazing designs and remove pricey stipulations from your business contracts, highlighting the significance of smart contract development in leveraging Corda’s capabilities for streamlined and cost-effective business operations.

Multichain

The healthcare industry, banking and finance, human resources, the education sector, e-commerce, retail, and so on are all examples of fields that could benefit from using the multichain blockchain platform. Companies rely on it to streamline their human resources operations.

Openchain

Human resource departments can improve all areas of their operations by using the Openchain blockchain platform.

Challenges of Implementing Blockchain

Challenges arise while trying to build and implement blockchain technology in a commercial setting. Let’s examine them one by one:

Lack of skilled blockchain experts

Exceptionally few qualified developers are now available in the blockchain industry. There has been a shift, however, and both medium and large businesses are increasingly offering competitive incentives to hire and keep blockchain professionals.

Complex user interface

Some technological tools may be above users’ capabilities. A large consumer base might be attracted to your business if your system is user-friendly and enticing.

Changing blockchain regulations

The guidelines around blockchain technology are dynamic and frequently updated. The difficulty arises from figuring out how to factor the impact of regulations into daily operations.

Lack of scalability

Even though numerous methods have been proposed for addressing the issue of scalability in the blockchain sector, it continues to be a key obstacle. Blockchain connects nodes in the blockchain system, allowing for two-way communication and interaction that could solve scaling problems.

Security problem

If not adequately encrypted, blockchain implementations are often susceptible to attacks from hackers. It’s one of the most worrisome problems that most businesses that have used blockchain technology have encountered so far.

Poor speed

Another significant obstacle to the wider commercial use of blockchain technology is its slow Transaction Processing Speed (TPS).

Things to Consider During Blockchain Implementation

Do not yield to setbacks

Never assume that all the protocols for implementing a blockchain will work perfectly from the get-go. Duplicate all the problems and errors and see if you can remedy them. There are various ways to accomplish this, but it’s best practice to keep the blockchain as straightforward as possible. Try things out and learn from your mistakes. It’s important to do a sufficient number of experiments and to view each one as an integral part of your learning process.

The implementation has to work

You must test your system thoroughly to verify its operation. Testing in a controlled environment is crucial. Real-world testing follows. You may discover new variables. Such factors can affect your blockchain solution implementation.

Make plans for the future

As soon as you finish developing a protocol for implementing blockchain technology, you should move on to the following step. Inspect a few weak spots and see what may be done about them. For future growth, verify blockchain scalability. This is essential to preventing technological stagnation. Strive for perfection on a continuous basis by making incremental changes.

Stay focused

Correcting and enhancing your protocol should be your first objective. You may become confused by its many facets, which could endanger your overall strategy. Make incremental improvements to the system rather than attempting a radical overhaul. In a nutshell, if you let yourself get sidetracked or lose sight of the big picture, your enterprise blockchain deployment will be for naught.

Cost Factors of Blockchain Implementation

We have determined key criteria that affect the cost and length of blockchain implementation based on our experience with blockchain projects:

• Strategy for introducing blockchain technology (development from scratch or forking)
• Whether a blockchain network is private, consortium, or hybrid
• Essential consensus protocol
• If blockchain technology is split from an existing protocol, the associated transaction fees will be set by that choice
• The number and level of complexity in terms of functional modules
• The variety and sophistication of blockchain-related online and mobile apps available
• The number and sophistication of possible software integrations have an impact on the design of integration APIs
• Need for speed, scalability, cross-chain compatibility, and safety in blockchain solutions