Notes

Your business can benefit from blockchain technology

Understanding blockchain's decentralized ecosystem is essential to learning how to implement it.

By following these tips, you can simplify your blockchain implementation while maximizing ROI and results.

1. Real blockchain developers openly play with their tokens

Because blockchains are decentralized systems, no one party controls the overall system and everyone participates according to the same rules. It is only the public blockchains, particularly Ethereum, where this is the case.

Blockchains on the surface look like managed networks, but users are wary of a system where the controlling entity can change the rules at any time. In a well-populated ecosystem, a public blockchain can be used to create value.

2. The best technology may not always be the best option

Blockchains are widely available, including Bitcoin, regarded as the gold of digital currencies, and Ethereum, which has the largest developers community.

Like there will always be better PCs, mobile operating systems, and networking technologies than the internet, there will always be better blockchains, depending on the measurement criteria. Let's stop searching for the best. It doesn't matter in this case, because best is relative. Users and developers always choose the systems that have the most developers. Building practical applications that add value is more likely to be successful on a network with the most buyers, sellers, and investors.

Don't listen to anyone who says Ethereum is congested. The same people say Venice is too crowded and nobody goes there anymore.

Rules for blockchain success


The third step is to think in the context of native blockchain technology

Similarly to how companies have business processes, blockchains have tokens and smart contracts. When companies translate their legacy vision into blockchain-native concepts, they have the best chance of implementing blockchain. The focus shifts from moving documents around to using smart contracts and tokens instead.

As an example, imagine a purchase order for widgets. As a document, or as an agreement to purchase widgets at a specific price, it could be seen as a document. The information can be passed back and forth as participants on a blockchain, or a smart contract can be created to exchange widget tokens for money tokens. In reality, they are two quite different worlds, but they have the same effect and sound similar at times. It is worthless to store documents on blockchains. As opposed to coins, tokens can be bought, sold, financed, and borrowed.

A key idea in blockchain is that value can be moved as easily as information, but document exchange does not take advantage of that. Here's an example. Imagine you're moving documents online. The process of sending and receiving documents is like having a web server send you a picture of a page, rather than its text. The text-based HTML document, or blockchain in this scenario, is also searchable and indexable, so search engines can find it. In the web ecosystem, one of these approaches is fundamentally more useful than the other.

Resolve a problem that actually exists

A blockchain implementation that attempts to fix what isn't broken yields little ROI and is an ineffective use of resources.

Blockchain, which enables us to move value as easily as information, cannot be realised by sending documents back and forth.

Projects that create value through blockchain solve actual problems today rather than laying a foundation for future problems. It's nice to have big-picture visions of problem-solving, but they rarely work. As we have seen over and over again in the history of technology, platforms are built on products that solve one very small problem effectively.

Building a system for solving a problem that hasn't been addressed by existing technology is the best way to breed success.

The best ROI opportunities involve multiple parties and shared business logic

Decentralized blockchains make them ideal for integrating business processes between companies. They allow all participants to follow the same set of rules. Information can be shared across multiple parties and business logic can be included in the shared process, unlike electronic data interchange systems.

For instance, the process of buying goods usually involves a buyer, a seller, and a shipper. In addition to volume discounts and rebates, scheduled pickups make this a great option. Regulation of Crypto becomes even more valuable if you allow a subsidiary or business partner to buy off of the same contract. As a result, logic, such as a volume discount, needs to be implemented across firms rather than within a single ERP system.

Blockchain deployment inside an enterprise is rare, since designing systems for decentralized design is more complicated and expensive than designing systems for centralized design. A centralized system has the advantage of being quicker and more affordable since most companies can agree on enough shared rules internally.

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