- What is blockchain?
- What are the rules for building a successful testing strategy for a blockchain project?
Blockchain is the future of digital transactions. But even then many of us don’t know what exactly is this blockchain technology. Why is it so useful for businesses?
What is blockchain?
In simple terms, blockchain is a series of records of data that are unchangeable. These records are time-stamped.
All these records are managed by several computers, and not by just one. We connect each block of data with the help of a chain. These multiple chains of networks are what keeps the blockchain credible and trustworthy.
But, why is it so important for businesses? This blockchain network is an example of a democratized system. It doesn’t possess any single authority for looking after it.
Therefore, in today’s world, many companies are looking after this technology for solving their financial issues. Because of financial issues, this technology can cut down costs and increase efficiency.
In the blockchain, tokens represent assets like cash, raw material, finished goods, etc. Today, most of the blockchain applications are common in finance industries.
Developing a business case
For the successful blockchain implementation for any business, it is important to know the workings of the blockchain as well. Also, it’s important to know whether it can solve the problem.
Hence, you need to know the entire process inside out. Therefore, there are some criteria an organization can look into to ensure if it is suitable.
- Do multiple parties share that data?
- Can multiple parties update that data?
- Is verification mandatory?
- Is the interchanges time-sensitive?
- Do agreements interact?
If your answer is yes, then this technology is suitable for you.
1. Choose your blockchain carefully
Yes, you need to have a proper choice based on your purpose. Because there are several of them available today. So, choose one that is the most suitable for you. Each one has its benefit.
Every blockchain has a different chain, and each chain performs a unique function.
There are different types of blockchain. Some popular ones are private or public, centralized or decentralized, and permission-less or with permission.
For example, for security and financial regulations, a permissionless, decentralized blockchain is not sufficient. So, to ensure that you pick the most suitable one, for that talk to an expert.
2. Build an ecosystem
A team is always better than an individual. The same holds true with blockchain. It works better if you involve multiple stakeholders.
Hence, it is important to create a huge community within or outside the organization. Doing so increases trust among companies.
3. Design purposely
With blockchain, one needs to ensure two things.
First, whether it can solve the problem.
Second, it easily fits in the existing processes.
Because if it’s not so, the processes will need to be revised.
So, these are the 4 golden rules for building a successful strategy for a blockchain project in 2020. It will change transactions taking place around the world. So, it’s the right time to get into this.