What Is Proof Of Concept?
The Blockchain Proof of Concept is a process of determining whether a Blockchain project idea can be feasible in a real-world situation — a common type of consensus algorithm for blockchain. This process is necessary to verify that the idea will function as envisioned
Proof of Concept (PoC) is a method used for determining the applications and functions of projects. It’s used to determine how feasible a project could be and can be applied to several industries, such as financial, healthcare, or insurance. It can be used by both startups, and by enterprises.
What Benefits Does Proof of Concept Have?
- PoC represents the chance of entering the blockchain market for any business that is questioning whether to embrace a new technological idea.
- Proof of Concept Development for a blockchain project allows a company to pilot the blockchain solution before it becomes widely available; find out what type of problems the project may run into in the future; prevent wasting money and time; establish that all stakeholders involved follow your idea.
- Therefore, using a proof of concept represents a good way of adapting to the times before moving on with blockchain solution customization or development from scratch.
Why Do Enterprises Need a Proof of Concept?
Usually, the blockchain proof of concept is awfully popular among the startups in the market. However, proof of concept in blockchain can also be a great tool for the Enterprises as well. Mainly there are three points for needing it –
- Test out the blockchain project before going for mass production.
- Identify possible pain points that can make the project not useful.
- Save an enormous amount of time and money.
- Although anyone who comes up with a blockchain project idea will think that it will work, however, proof of concept in blockchain will test out your idea to ensure that you get the best version out of it, which will save up a lot of time and money in the process.
Who Does Frequently Use Proof of Concept?
- There are several categories of entities that usually rely on PoC. Among them, we can mention startups that want to enter the blockchain market but only have a limited budget.
- Secondly, we have entities that want to show their idea of decentralization to investors or early users. Another category is that Blockchain implementation use cases are focused on automating transactions and streamlining processes by making sure all the intermediaries and repetitive actions are removed. In the long run, the blockchain PoC created must bring more value to the customers.
- Testnets are available for most enterprise blockchains, such as Ropsten for Ethereum.
The Key Goal Of PoC
- Learning about blockchain and smart contract technology to internalize the skill-set required
- Demonstrating the feasibility of blockchain application to the banking industry
- Testing core business processes with a view to eventually moving them to blockchain
- Develop a working solution with minimal investment
An Example of Blockchain Proof of Concept
Businesses and government organizations across a variety of industries have conducted or are in the process of conducting numerous blockchain-related PoCs. Below, we cover one case study of a blockchain-related PoC to demonstrate the typical reasons behind, goals of, and conclusions from a PoC. The case study covers a PoC undertaken by the Federal Reserve Bank of Boston, one of the 12 regional chapters of the US Federal Reserve Bank.
- Proof of Concept is a way of finding out if the plans that a company has are feasible. This method doesn’t rely on spending time or money which makes it a candidate for entities that want to use the blockchain to embrace new technology without risking too much