There may be exceptions depending on your project, and it is possible to use a different type of blockchain to reach your goal. But in general, here’s how to break down different types of networks and understand their strengths and weaknesses:
Public networks are large and decentralized, and anyone can participate within them at any level — this includes performing tasks like running a full node, mining cryptocurrency, trading tokens, or publishing entries. These networks tend to be more secure and immutable than private or permissioned networks. They’re also often slower and more expensive to use. They 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 projects and increase transaction volume. Permissioned networks can be very fast with low latency and have higher storage capacity than 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 as decentralized networks. Storage capacity may be unlimited.
Hybrids between these three core types of blockchains 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 while making decisions that involve the following:
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 can 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 you have, 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 one.
Have teammates challenge and review all your issues and solutions before finalizing your decision tree.
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 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 projectProject strategyProject timelineRoles and responsibilitiesTeam-building activitiesTeam commitmentsHow your team will make decisionsKey metrics the project will be measured against
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?
Chapter 3
Getting Your Hands on Blockchain
IN THIS CHAPTER
Blockchains are very powerful tools and are positioned to change how the world