If you've been considering creating a blockchain, now would be the time. As of 2018, the global spending on blockchain solutions has topped out at $2.1 billion, with the size of the entire cryptocurrency market at over $600 billion.
In short, the opportunity is HUGE.
But how can you build a blockchain solution? Here is a quick and straightforward guide for building blockchains.
Find a Reasonable Use-Case
Blockchain has advanced so quickly that it's become much easier to start your own blockchain solution.
First when creating a blockchain solution is to basically see if blockchain can play a big role in solving the problem. Does the business need a decentralized database or would it survive the traditional way?
Examples for use-cases that hold merit include:
The reason why these are some of the top fields is that they have multiple issues that can be solved with blockchain technology better than single-source, centralized databases.
Choose a Consensus Mechanism
What this means is once you find the proper use-case, you need to decide on "a fault-tolerant mechanism to achieve the necessary agreement" based on a single value from distributed ledger systems.
In simpler terms, the blockchain must now have a database through which to conduct the solution. Incredibly useful in recording data regarding the solution, the consensus mechanism is the decentralization of the blockchain.
The basis is a single "state of the network" like Proof of Work, Proof of Stake, Deposit based Consensus, and more. These deny service attacks and abuses, allows certain people to mine blockchains, or require security deposits to use the blockchain.
Select a Blockchain Platform
Once you have both your use-case and your consensus mechanism, it's onto the platform itself.
There are various free and open-sourced platforms to choose from. However, your decision will be based on the consensus mechanism you chose previously. From data privacy, confidentiality, user identity, and more, you'll have to figure out whether the platform is public or permission-based.
Design the Nodes and Configuration
This is a simple one: Will the nodes be on a cloud, on the premises, or a combination of both?
As for the configuration, you will want meticulously planned parameters, such as formats, permissions, block signatures, key management, etc. These need to be set and cannot be tweaked during run-time.
Create APIs and User Interfaces
Last few things are to either develop or skip using APIs and creating the user interface.
The first - APIs - are necessary for some functions, like performing audits, data storage and retrieval, or authentication of data via digital signatures. Otherwise, your blockchain platform doesn't necessarily need an API.
The second - user interfaces - are also somewhat based on the platform you're going with. The selection of external databases, as well as front end and programming languages, are decided based on everything beforehand. Now all you have to do is design the interface yourself for user interaction.
It's a lot of work overall, but if the solution can work better for your issue or data recording, you should definitely give blockchain a try for your solution.
Create Your Blockchain Solution for Success
Hopefully, now you have a solid blueprint for creating your blockchain technology. Follow these instructions and go big with your blockchain. Now is the time to cash in on this incredible market.
If you want more help in finding solutions with blockchain, IoTCoreSoft has your back.