If you belong to these people, this article “Blockchain Poc Development” will help you. We show you the phases to develop a Blockchain Proof of Concept.
“Blockchain Proof of Concept: Blockchain Poc Development” – Content:
- What is a Blockchain Proof of Concept?
- Why is a Blockchain Proof of Concept important?
- Market analysis
- Target group analysis
- Define MVP product
- Develop business model
- Blockchain Poc tips
- Blockchain Poc Development” – Conclusion
What is a Blockchain Proof of Concept?
A Blockchain Proof of Concept is an analysis of a Blockchain project. As a result, you can check if your idea can implement it in the real world. It is therefore a process of realization of a blockchain idea to demonstrate its feasibility. The goal is to check whether a concept has practical potential. A blockchain proof of concept is usually a small and usually not complete project. If the idea has passed the proof of concept phase, you can fully implement the project.
The development of a Blockchain proof of concept requires a high risk of investment in time, money, and resources. However, these are not as high as if you would implement the complete project. This keeps the risk within a tolerable range.
Why is a Blockchain Proof of Concept important?
In the start-up scene there are countless new blockchain projects every day. However, only a maximum of 2% of these projects is successful. With a proof of concept, you can test the project before you go into mass production. You can also identify pain points that could lead to the failure of your project. This can save you a lot of time and money. Because if something doesn’t work well, you can quickly make adjustments.
You can also make sure that you bring the best possible blockchain product to the market. It may make you a little slower in the beginning, but you have a lower risk. In addition, the project will gain speed in the long run.
Another reason for a blockchain proof of concept are the stakeholders. This allows you to prove to all stakeholders that your project will be successful. As a result, you can satisfy your current stakeholders and maybe even convince new investors.
1) Market analysis
The first step for a blockchain proof of concept development is the research phase. It is important to know in which industry you want to operate. You also need to know the industry in order to develop a marketable product. In the following we show you the most promising industries for a possible blockchain project ideas.
1. Financial sector
The financial sector is one of the best sectors for a possible blockchain solution. Low transaction costs, secure documentation capabilities and a high level of security are elementary success factors. Blockchain can change banks significantly. Possible use cases for a proof of concept are:
- Peer-to-Peer Trading
- Future markets
- Protection against money laundering
- Security concepts
- Know your customer concepts (KYC)
- Trading Reporting & Risk Visualizations
2. Pharmaceutical sector
After the financial sector, the pharmaceutical industry is the best sector for blockchain solutions. Thus, tracking of medicine, proof of origin and high-quality security concepts are crucial. Blockchain can not only optimize this sector, but change it from the ground up. The following applications would be suitable for a proof of concept:
- Decentralized database cooperation
- THEN Records
- Personalized medicine
- Regulatory safety concept
- Digital exchange of recipes
3. Smart properties
Nowadays there is a digital solution for almost everything. However, assets and investment objects such as cars, houses, land etc. are still managed in an old-fashioned way. With blockchain, we are the first to be able to map assets digitally and securely in the digital world. The following use cases are suitable for a proof of concept:
- Real estate
- Mortgages and payments
- Car Leasing & Sale
4. Public service
The public service has slept through the age of digitalisation. Citizens want digital services and infrastructures so that they no longer have to deal with unnecessary administrative procedures. Blockchain can be a major driver of digitisation around public services.
As a result, the growth of this economy is falling behind, leading to massive government burdens. What you can do here is to provide a secure network system that enables the government to operate paperless. You could use the following applications here as a proof of concept:
- Licensing & Identification
- Registration of vehicles
- Identification of the citizen
- Identity card
5. Identity management
In today’s digital world, we find it increasingly difficult to trust digital identities. And the web is littered with bots and trojans. We no longer know whether we can trust a review. This causes enormous damage not only to private individuals but also to companies. These apps can be useful:
- Digital identity
- Digital assets
- Purchase Tracking
- Digital Reviews
- Education & Certifications
- Multifactor Authentication
Iot has become an important part of our modern times. Everywhere are now sensors that measure and record everything. We can use this data for new data-based business models. Nevertheless, IoT devices are still subject to attacks by hackers. In addition, it is becoming increasingly difficult to get an overview of the huge amounts of data. With blockchain we can not only make IoT devices more secure, but also use a uniform database. This could be especially interesting for this purpose:
- Cross-company maintenance markets
- smart meter
- smart grid
- Device databases
- IoT Payments
7. Logistics and supply chain
The logistics and supply chain industry must constantly reinvent itself to remain competitive. High cost and efficiency pressures create a highly digitalized environment. There is still enormous potential in the transfer of products along the supply chain. Blockchain with Smart Contracts and other concepts could have a major impact here. The following use cases would be interesting for a proof of concept:
- Shipping and logistics management
- Authentication Food
- Product Tracking
- Real-time auction for delivery
- Dynamic management
8. Insurance sector
The insurance industry faces some serious problems in relation to insurance claims and the certification of documents. The enormous amount of paperwork that every employee has to fill out is time-consuming and inefficient. With an unmodifiable decentralized database we could eliminate these problems. The best proof of concept blockchain ideas would be here:
- Insurance claims
- Self-managed insurance
- Asset Management
- Digital Authentication
- Fraud detection
- Claims Handling & Administration
- Automated payments
9. Energy sector
The energy industry is slower than other industries when it comes to innovation, due to many regulatory requirements. But it is one of the most interesting industries for blockchain technology. No industry will be more important in the future. The markets are becoming more and more decentralized and without decentralized solutions no one in this industry can survive in the future. Blockchain can be of central importance for the success of the companies. The following proof of concept ideas could be attractive for this industry:
- smart meters
- smart cities
- Digital certificate of origin
- Decentralized P2P markets
- E-Mobility Charging Station
If you know in which market you want to operate it is important to figure out how the market looks like.
2) Target group analysis
Once you know which industry you want to find a solution for, you need to identify your target group. This is really important for a successful blockchain poc development. Here, it is important that you find out who your potential customer is.
For this, collect all the characteristics your customer should have. Then sit down with your team and prioritize them. These could be possible characteristics:
Transaction Rate: Which transaction rate your solution has to have, depends strongly on the sector and your target group. For example, if you are in the financial sector, the performance should be very high.
Consensus: Another important feature is the consensus model. This has a direct impact on the performance of the solution. So if your target group does not have a high level of trust, the consensus model can be more trustless. Thus, we can significantly increase the transaction rate.
Privacy: One of the most important issues on the Internet and for companies is data protection. Depending on the level of security, you have to use appropriate authentication procedures.
Scalability: Another factor is scalability. Does your solution have to be able to handle large volumes of transactions in the future? Does it depend on the number of users? What does your target group expect?
With these criteria and the market analysis, you can cluster the first target groups. You can survey the most promising target group for your MVP product.
3) Define MVP product
After you have found out who your target group is and what your target group wants, you need to define the Minimum Viable Product. Here it is important to set a clear focus. What are the absolute minimum requirements your potential target group needs?
4) Develop business model
When developing business models, it is important to find out how well your solution solves your customers’ problems. For this purpose, you have previously obtained a good market overview with the help of your market analysis. Then you have created a customer profile with the target group analysis. With the definition of the MVP product, we have determined the minimum requirements of our potential customer needs.
We can now define our business model with the help of the Blockchain Business Model Canvas. This is important for pursuing a clear MVP strategy. We need this in the pilot phase.
The theoretical process is now completed and everyone involved in the project is satisfied with the business model. The next step is to put the theory into practice. Thus, we have to create a functional prototype. It can contain information architecture, code, sketches, mockups, design, and tested products. This should give investors and all stakeholders a first insight into the actual product.
Now you have to develop your minimum viable product with the minimum requirements. You should also use the MVP product in the long run. Thus, further solutions and extensions can be based on it. You use your MVP to test the product hypothesis of the project. Thus, you can see if the project is feasible. In this phase, we have the first paying customer who can also try the product. These were all necessary steps for a successful blockchain poc development. In the following, we have some tips for you.
Blockchain Poc tips
To ensure that your blockchain poc development and your blockchain project is successful, we would like to give you a few tips.
1)Focus on important issues
When you start with a proof of concept, you often don’t know where to start. You have countless questions, but you won´t be able to answer all of them. So it can happen that you try to answer questions that are not important at the moment. Most of the time these questions lead to more confusion. Therefore it is important to define a clear objective. This allows you to concentrate on the important questions.
2) Stick to the MVP concept
The MVP approach helps you to focus on the important things. However, it often happens that in the first step you want to add more features then you need. You should, therefore, ask yourself during the proof of concept process whether you need that function. It is always helpful to make contact with potential customers. This way you don’t lose sight of the customer relationship.
3) Open Mind
During the proof of concept development phase, you should always keep an open mind. In this phase, it often happens that we get tunnel vision. However, it is important to keep looking around and also to question whether we have observed everything. That’s why you should have an open mindset and look at new angles.
4) Appreciation is important
In the initial phase, everything has to go quickly, and often you forget to show appreciation. However, a motivated team is crucial for the success of your product development. Show your team that you value their work and try to have an open ear for everyone. You will soon realize that you can move mountains with a motivated team.
5) Bring in an innovative mindset
During the Blockchain Poc Development Phase, you are often confronted with problems. With an innovative mindset, you can easily solve problems that seem impossible. For example, platform migration could be a big problem and you could solve it with an RPA process.
6) Develop new use cases
The initial phase is usually also the most creative phase. Often many new use cases for the product come to mind. But that does not mean that you should ignore them. They may not be interesting for your proof of concept right now, but they may be crucial afterward. Therefore, document all important use cases that come to your mind during the Blockchain Poc Development Phase. These are also interesting for your stakeholders and can help you to get new investments.
Blockchain Proof of Concept: Blockchain Poc Development” – Conclusion:
In Blockchain Poc Development you analyze whether a blockchain product is needed by customers in the real world. We can demonstrate a blockchain idea and its feasibility. This way you can check if your blockchain project has practical potential. You start with a market analysis to find out the market volume and market dependencies.
Based on this, we analyze the potential target groups and cluster them. With customer surveys, we can then find out what the MVP product should look like. After defining the MVP product, we can develop a business model. Then we use mockups to create a prototype and show it to potential customers. Finally, you can develop an MVP product that meets the needs of your target group. With these procedures, your blockchain poc development will be successful.