Widely known for its relationship to cryptocurrencies such as Ethereum or Litecoin, blockchain technology, yet, has demand in many other sectors and commercial contexts.
In 2021, the global spending on blockchain development services was expected to surpass $6.6 billion. The later forecasts counted that spending on blockchain solutions would continue to grow in the next few years, reaching almost $19 billion.
Among some of the advantages of the digital ledger is that it is fraud-proof and can be instantly edited online.
These characteristics make the technology ideal for data proof, information access, and profile protection, which serve as blockchain’s most typical applications.
Blockchain technology use cases in organizations worldwide, Statista
Many well-established companies around the globe have already adopted blockchains for internal purposes such as documentation and interdepartmental transactions, as well as in their billing processes.
But how to implement a blockchain system if your company is relatively new to the technology or lacks the technical expertise?
What Is Blockchain Integration and How Can It Benefit Your Business?
Blockchain integration means implanting distributed ledger technology into administrative processes, systems, or business models. Mostly, it involves using decentralized and unchangeable ledgers to record and verify trade activities, sales, payment actions, or data amendments.
Key Benefits of Blockchain Integration for Businesses
Despite the fact that the potential of blockchain technology is at its relatively early phase of development, it can already bring some advantages.
First, it’s security. Blockchain technology promises that transactions and information are safe due to the prevention of data leaks and tampering through advanced security mechanisms.
Also, blockchain integration adds a layer of transparency: transactions are recorded in such a way that all the players within the chain can have access and verify ownership, hence trusting each other.
General Use Cases of Blockchain for Business
Some years ago, blockchain’s role was somewhat unclear. But thanks to further developments and curiosity among businesses, it made it to the real world, leaving the limitations of virtual ideas.
Internal and Cross-Border Payments
Internal and cross-border payments have become a popular use case for blockchain technologies.
Throughout the planet, consumers and businesses transmit large quantities of money daily and in the past, this process has remained fairly expensive with bank fees and currency conversions.
Executing Contractual Agreements
Smart contracts—auto-executed agreements with terms written into code—are one of the most powerful features of blockchain. When predefined conditions are met, a decentralized system independently executes contract terms, eliminating intermediaries like lawyers or notaries.
Identity Management
Blockchain-powered identity management allows companies to control their personal information without counting on centralized entities. Decentralized identity systems, besides, are resistant to fraud and hacking, giving users full ownership of their data and the ability to share it with those they trust.
Intellectual Property Protection
A blockchain system can be used to register and track intellectual property, such as invention rights, trade names, and copyrights. When content is recorded on a blockchain, it creates an unchangeable ‘chronicle’ of ownership against intellectual property theft or unauthorized use.
Data Sharing & Privacy
Blockchain integration can improve data sharing and privacy by permitting businesses to transmit sensitive information without the risk of data leakages. By using decentralized ledgers, data sharing between multiple parties is protected by encryption and immutable records.
How Different Industries Can Make Use of Blockchain?
Many sectors have already found applications for blockchain technology. And although some areas significantly exceed others in terms of the volume of blockchain solutions used, this does not mean that the situation cannot change in the next 5-10 years.
Blockchain in Finance: Currency Exchange, Insurance, Investing
A large focus of blockchains in finance lies on the use of Decentralized Finance (DeFi) protocols. DeFi protocols typically focus on currency exchange, money borrowing/lending, and insurance.
Blockchain-powered financial operations don’t depend on centralized banks, allowing for nearly instant payments between parties, no matter their location.
Blockchain Gaming: Playing Games for Real Money
NFT and Metaverse blockchain games can offer numerous ways to make real money. One of them is to create or collect different in-game artifacts and sell them online.
Younger audiences, in fact, display high interest in play-to-earn games. In the US, for example, 27% of respondents aged 18 to 34 said they were interested in such games to some extent, which is about 12.5 million people.
Level of interest in play to earn games among adults in the US
Supply Chain and Logistics: Watching Goods and Eliminate Forgery
Supply chain and logistics blockchains help businesses authenticate the source of products, minimize fake production, and improve traceability within delivery networks.
The best example is De Beers, the diamond-mining leader, which has embraced a blockchain system to track the origin of diamonds and prove they are conflict-free and sourced with ethics.
Energy and Utilities: Energy Regulation and Tracking
Within the energy sector, blockchain can regulate energy markets and fuel consumption. By permitting peer-to-peer energy sharing, individuals or organizations can trade their surplus energy directly without an intermediate. Besides that, blockchain integration can be useful in tracing and documenting carbon footprints.
Blockchain in Real Estate: Property Tokenization and Proof of Ownership
In real estate, blockchain integration can help tokenize and digitize land leasing licenses and deeds, speeding up property bargains and the verification of rightful ownership.
According to the Deloitte Report, blockchain has also begun its adaptation in commercial real estate (CRE), where the technology may potentially recast CRE acquisition, sales, financing, leasing, and administration.
Factors to Consider Before Implementing Blockchain
Before enforcing a blockchain system, it is important to weigh all the pros and cons so that you don’t end up mourning your wasted investments.
Start by thinking about what blockchain can actually do for you. Does it solve security matters, get rid of data falsification, or reduce fees for microtransactions or multinational payments? If the answer is yes, then it might be a good fit.
Also, think about and plan how complex the process will be. Blockchain requires much to set up, especially if it has to work with the existing software platforms.
Speaking of cost, implanting a blockchain system isn’t free. Estimated costs may include:
- Software development
- Infrastructure setup
- QA testing
- Compliance audit
- Hardware acquisition
- Cloud services rental
- Network costs
- Staff instruction
- Technical support
- System updates
- Security measures
- Software licenses
- Legal consultations
Double-check you’re clear about the expected return on investment (ROI) before proceeding.
Regulations around blockchain are still unwinding, so it’s important to stay updated. For example, Bangladesh, Bolivia, Morocco, and Algeria have clearly prohibited the use, trading, or possession of cryptocurrencies.
Blockchain itself is rarely outright banned, as it has different legitimate applications beyond digital money. For instance, China and India support blockchain development but restrict crypto.
Lastly, a blockchain system is pretty technical, so you may need experts on your team. If you don’t have the required background internally, you’ll either need to hire people with relevant experience or seek external help.
Step-by-Step Guide to Integrating Blockchain Into Your Business Infrastructure
Given the scope of the project on incorporating a blockchain system, it becomes clear why many companies approach this technology cautiously or feel hesitant. Still, splitting the process into manageable steps can help overcome the hardships.
Step 1: List Your Business Ideals and Expectations
The first step is outlining what parts of your business routine blockchain can improve. Describe the specific plans you want to accomplish with a decentralized system so you can acquire the right solution. The list below can help you out:
- Fraud prevention
- Supply chain transparency
- Identity validation
- Agreement execution
- Digital ownership and asset tracking
- Intellectual property protection
- Transparent voting systems
- Faster settlement times
- AML-compliance
- Healthcare data management
- Live auditing and recordkeeping
Step 2: Decide on the Blockchain Type
Next, decide on the blockchain type—public, private, or consortium. The public type offers openness and decentralization. Private blockchains offer more regulation and confidentiality. If you’re working with partners, a consortium blockchain might be the best alternative for shared access.
Step 3: Find a Decent Partner to Delegate a Project
In most cases, it is better to delegate software development to an expert team. They will help select the blockchain platform and tools, plan for integration with existing systems, start smart contract development, and ensure compliance.
Step 4: Train Your Team
Blockchain integration means that your team should know how to work with the new system. Proper training for your employees is very important in order for them to be comfortable with the new processes, technology, and tools.
Step 5: Watch and Optimize
Monitor the performance of the blockchain network after going live. Blockchain systems may require some fine-tuning to perform optimally, so be prepared to make adjustments as necessary.
Common Challenges in Blockchain Integration
The main conflicting point in the implementation of a blockchain system is the high initial charge.
Setting up a blockchain system is truly expensive, as it requires investment in new technology, development, and training. Additionally, blockchain integration is technically complex. It requires specialized knowledge to make it somehow work, and businesses almost always need to seek outside help.
Regulation has remained the main headache of blockchain for many years now. And even though the assignment of Paul Atkins as the director of the SEC, who feels optimistic about blockchain, promises to bring more clarity, the uncertainty of how laws will evolve in the future can make some companies hesitant to adopt blockchain.
How to Choose the Right Blockchain Provider for Your Business
Despite the immaturity of blockchain technology, the market is full of providers promising to develop any decentralized product. How to choose the right one?
It is important, first of all, to choose a provider that has great experience in your industry and a profound understanding of specific regulatory and operational challenges.
Assess their security and scalability, and how well they can integrate with the current applications.
The next action involves researching the support and customer service accorded by the provider and evaluating their track record. A vendor who provides follow-on technical support and maintenance service post-deployment may be considered because blockchain systems need continuous monitoring and updating.
Assess their competence to deal with performance and scaling challenges, especially if your business is poised for fast growth or involves high-traffic transactions.
Finally, make a value assessment of the cost of deployment against the long-term value the provider brings into your business. The output must be cost-effective at no compromise for performance and security.
How SCAND Can Help You with Blockchain Integration
SCAND will be glad to assist you in integrating blockchain into your business, providing professional consultations and developing custom software products based on your necessities.
First, we’ll work with you to figure out how blockchain can improve your business in terms of safety, speed, and transparency.
We will then guide you through the whole process, right from choosing the appropriate blockchain solution to guaranteeing the proposed solution fits and integrates into your current software.
Also, we’ll take care of the technical challenges, provide training, and offer support to prove your team is ready for the new technology.
For more details or to get a quote, please contact us directly, and we’ll be happy to discuss how we can help add a blockchain system to your business.
FAQs
How do I know if blockchain is right for my business?
Assess your challenges and see whether the characteristics of blockchain, such as transparency and decentralization, will solve them. Or else, do a small-scale proof of concept.
How long does it usually take to integrate a blockchain system into an already existing infrastructure?
Depending on the complexity and readiness of the already existing systems, implementation can take from a few months to more than a year.
What are the costs involved in blockchain integration into business processes?
Usually, expenses involve developing the platform, setting up the infrastructure, consulting, and long-term maintenance. For a more detailed plan, please contact our managers.
How to integrate blockchain into your business website?
The most common way to enable blockchain capabilities on your website is to use APIs or SDKs of your host platform.