Blockchain has risen from obscurity to become one of the most talked about tech trends today. While this is mostly due to its association with cryptocurrency, the fact is that many businesses are waking up to the potential for blockchain to transform their industry, especially in finance, cybersecurity, supply chain, healthcare, and sectors that deal with sensitive data sets.
To make the most out of blockchain for your business, you’re going to want to understand what the technology can do and partner with a software development company that has specific expertise in blockchain. This guide will help you choose the best one for your needs.
How Blockchain Works
A blockchain is a digital ledger maintained by a decentralized distributed network of computers (called nodes) around the world. The ledger contains a record of activity on the network (e.g., cryptocurrency transactions) and is accessed, checked, and verified by every single computer on the network. This means that it is impossible to delete, alter, or falsify the record unless one controls the majority of nodes on the network.
Business Uses for Blockchain
This high standard of security makes blockchain attractive to the banking sector, as distributed ledgers can be used to prevent fraud and quickly process transactions, while offering a high level of transparency. Automation cuts out the need for third parties in transactions, as the blockchain network can verify transactions in smart contracts to approve loans, sales, remunerations, and other financial products.
Other business uses of blockchain include anything that requires cybersecurity; this includes mobile apps that process sensitive information and healthcare systems and enterprise platforms. Supply chains, which need to manage detailed inventory over many locations and combat fraud, can also greatly benefit from blockchain.
Finally, blockchain is being used for the creation of virtual objects in Web3 projects, such as virtual reality metaverses, with NFTs and cryptocurrency for trading digital items.
What to Consider when Choosing a Blockchain Development Company
Scalability is an ongoing issue in the blockchain and cryptocurrency industry. The more activity on the blockchain, the more processing power (and electrical power) is used by the system if the blockchain uses proof of work as consensus – but there are other methods with the aim of reducing carbon footprint. However, the latest blockchain projects are more scalable. When consulting with a potential blockchain partner, make sure they detail their plan to handle growth.
Before committing to a blockchain development company, ask vendors which programming languages they specialize in, and how they’ll make sure your system is fast and responsive. The coding framework used should be able to perform both parallel and non-parallel operations.
The development company should offer a full-stack team with specific experience in blockchain and any technologies related to the project (e.g., virtual reality, cybersecurity, online payments, cryptocurrency, mobile, etc.)
A successful software project needs more than just programmers. Partner with an agency that also offers a dedicated consultant that can manage your relationship with the product, advise, and take your feedback.
Which development methods should the company use? The Agile development methodology, which specializes in fast iterations and frequent feedback, is generally preferred for blockchain.
The company should have an established reputation for delivering projects on time and within budget. Check their reviews and case studies to verify that they do.
Some blockchain platforms, such as Ethereum, charge transaction fees for operations on the network. This can be worth it, but make sure to discuss this and factor it into budget and scalability planning.
How to Choose a Blockchain Development Partner, Step-by-Step
To find the right blockchain development company, it’s important to choose one that meets your goals.
1. Outline Your Business Needs
Most software development projects that fail do so because of poor communication or ambiguity between parties. So the first step is to clearly draw up your business needs, including the end goals, intended uses, desired features, budget, and deadline.
2. Reach Out to Companies
This can be done by posting your requirements online or looking up blockchain development companies and contacting them directly. Schedule consultations with prospective partners and discuss your project.
3. Consider Offers
Interested vendors should send you their bids. Shortlist only those from reputable companies that detail expenses, legal compliances, and policy covering delay or other issues.
4. Choose a Partner
This stage involves carefully comparing the bids to your criteria drawn up in step one. Before fully committing, schedule another consultation with your preferred candidates to work out any fine details.
5. Get Started
Work can start now, but don’t be completely hands-off. Stay in control of the project by liaising with the project manager and using a client dashboard.
A Blockchain Solution that Suits Your Needs
Integrating blockchain into your company should be carried out with the help of experts so that it becomes a genuine asset to your organization, instead of simply trend-chasing.
At AccelOne, the expert blockchain developers in our hybrid US/Nearshore team have extensive experience in creating blockchain, Web3, and crypto products for industry-leading companies.
Contact us online or call 800.863.6814 to find out how we can craft a blockchain solution to benefit your business.
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Chief Development Officer/Co-Founder