Blockchain For Dummies. Laurence Tiana

can participate within them at any level – this includes things like running a full node, mining cryptocurrency, trading tokens, or publishing entries. They tend to be more secure and immutable then private or permissioned networks. They’re often slower and more expensive to use. They’re are secured with a cryptocurrency and have limited storage capacity.

      ❯❯ Permissioned networks are viewable to the public, but participation is controlled. Many of them utilize a cryptocurrency, but they can have a lower cost for applications that are built on top of them. This feature makes it easier to scale project and increase transaction volume. Permissioned networks can be very fast with low latency and have higher storage capacity over public networks.

      ❯❯ Private networks are shared between trusted parties and may not be viewable to the public. They’re very fast and may have no latency. They also have a low cost to run and can be built in an industrious weekend. Most private networks do not utilize a cryptocurrency and do not have the same immutability and security of decentralized networks. Storage capacity may be unlimited.

      There are also hybrids between these three core types of blockchains that seek to find the right balance of security, auditability, scalability, and data storage for applications built on top of them.

       Drawing a blockchain decision tree

      Some of the decisions you face while working on a blockchain project within your organization can be difficult and challenging. It pays to take time making decisions that involve

      ❯❯ Uncertainty: Many of the facts around blockchain technology may be unknown and untested.

      ❯❯ Complexity: Blockchains have many interrelated factors to consider.

      ❯❯ High-risk consequences: The impact of the decision may be significant to your organization.

      ❯❯ Alternatives: There may be alternative technologies and types of blockchains, each with its own set of uncertainties and consequences.

      ❯❯ Interpersonal issues: You need to understand how blockchain technology could affect different people within your organization.

      A decision tree is a useful support tool that will help you uncover consequences, event outcomes, resource costs, and utility of developing a blockchain project.

      You can draw decision trees on paper or use a computer application. Here are the steps to create one for uncovering other challenges around your project:

      1. Get a large sheet of paper.

      

The more choices there are, and the more complicated the decision, the bigger the sheet of paper you’ll need.

      2. Draw a square on the left side of the paper.

      3. Write a description of the core goal and criteria for your project in that square.

      4. Draw lines to the right of the square for each issue.

      5. Write a description of each issue along each line.

      

Assign a probability value to encounter each issue.

      6. Brainstorm solutions for each issue.

      7. Write a description of each solution along each line.

      8. Continue this process until you’ve explored each issue and discovered a possible solution for each.

      Have teammates challenge and review all your issues and solutions before finalizing it.

       Making a plan

      At this point, you should have a clear understanding of your goals, obstacles, and what blockchain options you have available.

      Here’s a simple road map for building your project:

      1. Explain the project to key stakeholders and discuss its key components and foreseen outcomes.

      2. Write up a project plan.

      This is a living set of documents that will change over the life of your project.

      3. Develop the performance measurements, scope statement, schedule, and cost baselines.

      4. Consider creating a risk management plan and a staffing plan.

      5. Get buy-in and define roles and responsibilities.

      6. Hold a kickoff meeting to begin the project.

      The meeting should cover the following:

      • Vision for the project

      • Project strategy

      • Project timeline

      • Roles and responsibilities

      • Team-building activities

      • Team commitments

      • How your team will make decisions

      • Key metrics the project will be measured against

      

After you complete your project, you aren’t done! Go back and analyze your successes and failures. Here are some questions to ask yourself:

      ❯❯ Are my key stakeholders happy?

      ❯❯ Did the project stay on schedule?

      ❯❯ If not, what caused it to be delayed?

      ❯❯ What did I learn from this project?

      ❯❯ What do I wish I had done differently?

      ❯❯ Did I actually create new value for my company or save money?

      

You may want to return to this chapter when you have a deeper knowledge of blockchain technology and you’re developing a plan to build a project.

      Chapter 3

      Getting Your Hands on Blockchain

      IN THIS CHAPTER

      ❯❯ Creating and using a Bitcoin wallet

      ❯❯ Creating a simple smart contract

      ❯❯ Deploying a private blockchain

      Blockchains are very powerful tools and are positioned to change how the world moves money, secures systems, and builds digital identities. If you aren’t a core developer, you probably won’t be doing any in-depth blockchain development in the near future. That said, you still need to understand how blockchains work and what their core limitations are, because they’ll be integrated into many everyday online interactions – from how businesses pay people to how governments know that their systems and data are intact and secure.