Blockchain Proof of Concept: The Definitive Guide

Many businesses want to leverage blockchain technology to drive their revenue, attract new customers, or just ride the wave of a rising trend. However, most companies don’t know where to start experimenting. What’s worse, the risks of losing business and reputation are real when implementing innovations without a specific plan.

This article will define what Proof of Concept is and why this process is crucial when implementing a blockchain project.

What is Blockchain Proof of Concept?

Blockchain Proof of Concept is a method for figuring out whether a particular blockchain project is feasible in an actual situation. The process aims to verify whether an initial idea has potential and will work the way it should. Proof of concept can be implemented as a project prototype or as a Minimum Viable Product.  

Why Startups and Enterprises Need PoC

Startups rely on blockchain proof of concept to make up for their initial lack of resources. This is why they have to be very conservative about implementing new ideas. They also risk losing time on an infeasible project and ending up with nothing. Startups usually don’t have a completely clear understanding of their niche and target audience. That’s why starting a blockchain project can be like taking a shot in the dark.  

Enterprises require proof of concept as well. Uncertainty over an ongoing project means risking huge amounts of resources, needlessly overburdening employees, and delaying other projects.  All these points can significantly undermine the reputation of a company.

Considering these issues, we can pick out three of the most important reasons for startups and enterprises to opt for a blockchain proof of concept.

  • Testing a blockchain project before starting mass production
  • Identifying pain points that can lead to future risks when implementing a project
  • Saving time and reducing costs 

Proof of concept not only prevents you from investing in potentially infeasible projects but it also helps achieve the best version of your idea by considering your requirements and capabilities.

Another important reason to use proof of concept is to ensure that your stakeholders love your idea and want to invest in its implementation. 

Blockchain Proof of Concept: How Does it Work

Theoretical Stage

The first stage of the blockchain PoC is figuring out the theoretical aspects of a project. Without having a clear plan, you cannot progress to the development stage. Here are the steps of the theoretical stage:  

  1. Choosing the Proper Application Sectors for the Blockchain Project

Some of the major blockchain application sectors are:

  • Finance
  • Healthcare
  • Asset Management
  • Identity
  • Government
  • Payments
  • IoT
  • Insurance
  • Supply Chain

The demand for blockchain in different industries is growing exponentially. Define your application sectors to proceed with the project.

  1. Defining the Product

During the second stage, you will have to define the idea of your project and get support from every stakeholder. 

The PoC product planning phase should help you come up with a project roadmap. The key goal of this phase is deciding on:

  • PoC feature requirements
  • Key metrics
  • Alignment with stakeholders
  1. Choosing the Technology

Once you’ve come up with which features to include and a roadmap, you will have to hand these ideas to the engineering team. They will investigate the technology based on your needs to choose the best development platform. 

The two main steps here are:

  • Identifying blockchain protocol
  • Defining the governance architecture

Prototyping Stage

Now you are building the prototype of your blockchain project. At this stage, all your stakeholders should be aligned with the deployment structure. Prototyping is focused on building the Blockchain. It includes:

  • Creating the architecture
  • Developing the governance model
  • Adding features

For rapid prototyping, your team can use Ethereum, Hyperledger, or R3 Corda blockchain development platforms.

Developing Minimum Viable Product (MVP) 

This is a vital part of blockchain proof of concept. MVP is a project with a minimalistic set of features that will be used in the final product. During this stage, you will need the end-user to be involved. 

The main goals for Minimum Viable Product (MVP) are:

    • Saving costs. An MVP allows for testing the blockchain project at a minimal cost since you don’t need to add every feature to it. 
  • Saving time. Figuring out all the pitfalls of the product with MVP helps cut down on development costs and timelines during the deployment of the project. 
  • User Feedback. You will be able to solve the issues end-users experience with their feedback during the MVP stage.

You may launch the MVP internally or within a small group of customers.

How to Launch Blockchain POC Successfully

  1. Focus on real-time specific issues to resolve.
  2. Don’t go for too much from the start.
  3. Connect the ideas and get them under control.
  4. Construct a precise plan
  5. Put the product through multiple testing phases
  6. Involve the right number of staff

In Conclusion

Blockchain PoC is effective at revealing the pain points of a project. However, it may also show that your project is completely infeasible. In doing so, you may come to the conclusion that you are not ready for blockchain development. 

Despite the outcome, the blockchain proof of concept is inevitable for any organization seeking to implement blockchain. 

If you are planning to run a blockchain proof of concept or MVP, Unicsoft is the ideal strategic partner to create and launch a successful project. Our team of blockchain experts helps clients benefit from two key PoC development outcomes simultaneously. We help ensure that final implementation fulfills the concept’s potential while also avoiding unnecessary costs on a hypothesis that might not be viable.

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