The only way to succeed and survive the chaos of constantly emerging blockchain projects is to devise a well-planned and technically flawless solution. It’s not magic, it results from careful planning and execution. We developed seven strategies to build blockchain software solutions effectively.
1. Find your niche
Finding a creative and reasonable application for blockchain technology is challenging. Looking at potential use cases, the distributed ledger may apply to almost any industry – banking, intellectual property rights, insurance, etc. However, before you build your own, you must conduct a thorough examination of existing projects. That logistics can benefit from blockchain opportunities does not imply that the world requires 100 identical projects to solve the same problem.
As a result, before you get too excited about an idea, make sure it’s worth bringing to life.
2. Design a workflow for Blockchain Integration
If you have identified a niche where blockchain implementation is likely to be helpful to the public and profitable, take a moment to consider whether you need a blockchain or if there are alternative solutions to the current problem.
The only reason to use blockchain in business is that the existing centralized solution is inefficient, expensive, and lacks transparency and reliability. Sometimes, blockchain is overkill. So, carefully consider how you will incorporate technology into your development strategy and ensure that it is critical to bringing your idea to life.
3. Select Between New and Existing Blockchain
Create a blockchain network if you believe blockchain is the only way to go and the cheapest way to solve the urgent problem.
You must first decide whether to build your own blockchain or use an existing one. Before you choose the first option and enthusiastically ask how to create a blockchain, prepare to spend months developing it. You will need to design the nodes and the blockchain instance and plan configuration for various elements, such as asset issuance and re-issuance, block signatures, and many more. You’ll also need to create APIs and interfaces for users and administrators. It causes the selection of programming languages, external databases, and servers.
4. Choose between private and public Blockchain
When dealing with an existing solution, you don’t have to spend much time on blockchain programming. It would help to decide whether a private or public blockchain is better suited to your needs.
They differ significantly, and your choice should be based on your needs. With Bitcoin, it can take up to 10 minutes to confirm a transaction on a public blockchain. Their use is costly and resource-intensive. However, these disadvantages are insignificant if transparency is critical to you and all members of your network are independent and distrustful.
As a result, you must choose between the openness and transparency of a public network and the speed and low cost of a private network.
5. Choose a relevant consensus mechanism
If you build a blockchain solution on a public network, you must select a suitable consensus mechanism. It’s an algorithm that allows the participants to trust one another.
Proof-of-Work, built into the Bitcoin blockchain, is the most widely used consensus protocol. When a specific user (node) generates a new block and wishes to add it to the blockchain, the other network members can quickly determine whether it is reasonable. If everything is in order, a new block is added to the blockchain, and all members agree that the information it contains is correct.
Besides Proof-of-Work, you may give preference to:
- Delegated Proof-of-Stake
6. Choose a relevant platform
To determine which platform best meets your requirements, begin by examining those with the highest market capitalization: Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, Cardano, Stellar, NEO, IOTA, Monero, Dash, NEM,…
Except for Ripple, all top-rated platforms are open to the public and use the Proof-of-Work protocol. It does not imply that you must select one of them; instead, the selection of these platforms is much broader than others.
7. Decide whether you need smart contracts
When developing your blockchain solution, the last consideration is whether you intend to use smart contracts. These computer protocols allow you to issue your assets, transfer them, or automate certain processes.
When you complete these steps, you will have a strategy to build blockchain software solutions effectively. Each stage decision should be based on the goal you want to achieve and the network structure you wish to develop. Again, blockchain implementation is not always feasible. Think twice before investing in a project that can complete without this technology. Contact SmartOSC to know more about blockchain.
Contact us if you have any queries about Blockchain development services.