Tag: Ethereum

  • Enterprise Blockchain Adoption Hinges on DevOps

    Enterprise Blockchain Adoption Hinges on DevOps

    There is a lot of excitement around blockchain right now, for a good reason. Production use cases continue to emerge across sectors such as manufacturing, energy, air travel, insurance and finance. Gartner predicts that by 2023, organizations using blockchain smart contracts will see a 50% increase in their data quality.

    Yet, Gartner also predicts that blockchain will reduce data availability by 30%. Before its use can reach ubiquity, blockchain-based application development has some hurdles to overcome. And if enterprises are to get on board, executives will need to see tangible proof of its value in the form of reduced expenses and increased profits directly correlated with blockchain adoption.

    “Enterprises aren’t going to change their business model to adopt a new technology,” said CasperLabs CEO Mrinal Manohar. Just as it’s difficult to dramatically alter the UX for established products, it’s similarly difficult to change the developer experience for established software production routines.

    I recently met with Manohar to discuss the limitations and the changes required to accelerate enterprise blockchain adoption. According to Manohar, much of it boils down to taking a DevOps approach—reducing energy use, enabling CI/CD, ensuring stable development environments and providing room for change and ongoing testing—will be critical to spur adoption. This could also mean abstracting complexity away from the developer and end users. However, once more production proofs are out there, the shift toward blockchain will be swift and it will be massive.

    What’s Hindering Enterprise Adoption?

    Enterprise adoption comes down to UI and UX, said Manohar. He predicts blockchain will follow a similar path as the internet. In its command-line days, the internet was only adopted by die-hard techies. But once visual-based actions were possible through the browser, consumer interest exploded.

    Similarly, blockchain might see more production use once the complexity is pushed to the background. “A technology is awesome when it’s 99% invisible,” said Manohar. However, at the moment, blockchain is 99% visible, he adds. For example, it isn’t easy to spin up a node and test a blockchain app. Lowering the requirements to 50% with more abstraction, simulation and integration with cloud providers could help tremendously.

    In general, Manohar believes that four key factors are hindering enterprise adoption:

    1. Enterprises need a lower energy footprint. Attaining high throughput on a public network without sacrificing decentralization and security is tricky. If blockchain drains operations when scaled, organizations may simply opt for a centralized data store. Therefore, enterprises will require a blockchain with minimal energy requirements.
    2. Large companies want developer environments that are similar to what’s already in place. In many ways, blockchain throws out the old playbook. But such a significant shift is a hard sell across multiple IT divisions. Large companies will require blockchain abilities that plug into the existing developer stack. Using a blockchain with familiar programming languages and plugins to popular IDEs like Visual Studio and IntelliJ will decrease onboarding effort.
    3. They need more control. Blockchains typically use immutable contracts. This is great for sustaining a shared distributed history, but Manohar believes that contracts need to be more malleable to enable continual upgrades. Furthermore, there is the issue of privacy when adopting blockchain. Some implementers don’t want all 100% of data to be on the public chain. Having the ability to maintain both private and public nodes for smart contracts could help enable more flexibility.
    4. Enterprises want ongoing support. Some companies will be autonomous using open source, but most enterprises will not adopt new or emerging technology without a support email attached to it, said Manohar. Thus, there may be a need for professional services and outsourced blockchain experts.

    Applying a DevOps Perspective

    Another big boon to accelerating blockchain adoption could be considering a DevOps perspective. To Manohar, introducing DevOps into blockchain requires more continuous updates, mitigations to avoid breaking change and simulations to enable better testing environments.

    An immutable blockchain infrastructure seems to be at odds with the DevOps creed of rapid deployment. Thus, Manohar said that choosing a blockchain that enables more mutability will help upgrade contracts and allow functionality to change over time. For core infrastructure changes that affect the entire public chain, the majority of validators must, of course, accept upgrades before they are distributed.

    Simple functionality, like a push notification, could ease this process to allow a quick Yes or No response from operators.

    Another potential concern is backward compatibility. What if the aggregate introduces significant breaking change? Manohar said that while this is technically possible, it’s improbable. “That would be a controversial upgrade,” he said, and validators have an incentive to keep a sturdy system intact. “They only do it if they think it’s better for the long-term health of the network.” But guardrails on this process will help avoid edge cases. Thankfully, if a change did disturb a minority of users, a blockchain can be forked. We’ve already seen this occur with Bitcoin Cash and Bitcoin, or Ethereum Classic and Ethereum, for example.

    Another shift that will help enterprises embrace DevOps in their use of blockchain will be better testing and deployment processes. It’s notoriously challenging to test blockchain applications while they are tapped into the broader network. Thus, engineers could benefit from a simulated runtime wholly divorced from the main network for testing purposes.

    The Future of Blockchain Development

    So, what does the future of blockchain enterprise adoption look like? Well, it appears we will continue to see new novel use cases emerge that use blockchain in innovative ways. For example, Manohar pointed to the use of blockchain to power an NFT digital twin, a patent marketplace, a tagging system for supply chains and the mortgage processes for a core banking system. Within these scenarios, he noted how blockchain is exorcising cost in many ways; smart contracts are being used to avoid legal fees, eliminate manual processing and improve fault attribution.

    Before blockchain can go mainstream, however, work must be done to bring other enterprises into the fold. Namely, it will necessitate more abstraction of the infrastructure layer. In this effort, low-code integration capabilities could help make API connections to ERP systems or cloud service providers more accessible.

    To inspire adoption, the economy must also change its perspective on what constitutes blockchain success. As of now, common KPIs are surface-level, like: How many wallets? What is the trading volume? Instead, Manohar believes we need to focus on proving actual cost savings from blockchain adoption. Once accountants are publicly reporting revenue gains, shareholders will demand that every company do this, he said.

    “Once that catalyst happens, adoption will happen very, very fast, and demand for blockchain in enterprises will be massive.” At that point, some years down the line, blockchain may truly power a new economy.

  • Making Blockchain-Based App Dev More Accessible

    Making Blockchain-Based App Dev More Accessible

    Blockchain has many potential uses cases outside of cryptocurrency. Established sectors such as financial, automotive, supply chain, and mobility could soon move to adopt decentralized applications and distributed ledgers. The technology has even been hailed as the ideal foundation to maintain a connected economy once humans go interplanetary.

    Recently, spectators note a swelling interest in decentralized, peer-to-peer, autonomous development approaches. Eyeing the excitement around cryptocurrency and blockchain, many developers are eager to start experimenting with their own blockchain-based applications. This incoming disruption could remove the middle man and give power back to people, says blockchain and cryptocurrency entrepreneur Max Kordek.

    However, building your own blockchain from scratch is incredibly difficult. So, I recently met with Max Kordek, co-founder, Lisk, to understand how to make blockchain-based app development more accessible. According to Kordek, there are many benefits to creating your own blockchain, but simplifying the creation process will be necessary to empower new startups and enable this new paradigm to flourish.

    Potential Use Cases

    The decentralized, tamper-proof nature of blockchain has disruptive potential to remove central authority and give more data control to the collective hive. “For me, it’s all about removing the middle man,” said Kordek. “It gives power back to the people.” Cryptocurrency is obviously the most widespread use case; Bitcoin is proof that a blockchain-based system can see mass adoption. But there are many other use cases outside of cryptocurrency where similar record-keeping is important.

    For example, the automotive industry could link data across manufacturers or share data between vehicles. NFTs are using blockchain to represent one-of-a-kind digital art objects. The airline industry is looking to blockchain to synchronize partner ecosystems. Blockchain is also transforming online gaming by substantiating in-game value systems.

    From insurance to supply chains to transportation, most industries hold a potential blockchain use case. But blockchain isn’t constrained to only terrestrial scenarios. Information systems engineers foresee blockchain powering future in-space economies. With significant funding going toward asteroid mining and Mars missions, an interplanetary humanity seems inevitable. Compared to Bitcoin, “Ethereum is a better choice for the interplanetary economy,” said David Vandervort. Gathering transactions in blocks and pinging satellites could enable monetary transactions from planet to planet. “An interplanetary financial system would have to be built on blockchain technology,” Kordek said.

    There is ripe potential in countless areas. But who will be leading this shift? According to Kordek, we may see corporations augmenting existing structures with blockchain. However, established enterprises will find it challenging to unshackle themselves from legacy systems. Instead, new startups are more likely to have a bigger say in the blockchain revolution. “It’s much more realistic that an entirely new startup adopts blockchain and structures their entire business around blockchain,” said Kordek.

    The State of Blockchain Development

    After Bitcoin was established, other developers forked the project and changed parameters to introduce new cryptocurrencies, such as Litecoin and Dogecoin. Eventually, Ethereum came along, which was unique as it enabled developers to build apps with smart contracts. However, “the developer ecosystem was horrible at the beginning,” explained Kordek. “It was the wild west of development.” To this day, it’s still very complicated to develop on Ethereum, he added. Plus, since it is open source and immutable, it’s vulnerable to security threats. “It’s like the biggest bounty program in the world—if there’s one bug, contracts are drained.” Ethereum also has scalability issues — it can only run 30 transactions per second, equating to 1 million transactions per day.

    For these reasons, it may be better to build your own blockchain. However, doing so is a difficult task. From a research perspective, this requires a lot of theoretical knowledge, Kordek explained. Blockchain also introduces new maintenance concerns—since the infrastructure is always on, it is unstoppable, making patching a bug or pushing an update tenuous at best. If hundreds of millions of dollars are dependent upon a stable network, one mistake could have drastic repercussions. The high development and QA roadblocks make prototyping blockchain-based systems from scratch challenging. “Experimentation is essential to bring an industry forward,” said Kordek. “It’s important we simplify blockchain development so more experimentation can happen.”

    Open-Source SDKs Make Blockchain More Usable

    So, how do we make blockchain more accessible so that experimentation can occur? Well, a lot of progress has already been made via ready-made open source language-specific SDKs. For example, there’s Polkadot (Rust), Cosmos (Go) and Lisk (JavaScript). Kordek is an advocate for language-specific libraries that fit a team’s programming preferences. Out of these, he favors JavaScript, as it’s generally easier to learn and already supports many web-based interfaces.

    These projects are not about the smart contracts themselves; they’re about improving your own blockchain creation process. According to Kordek, going down this route grants more control in the early days. If something is broken, you can fix and push and update. If tokens are hacked, you could roll back and adjust things, he said.

    As companies get bigger and bigger, the technology could have a centralizing effect. “How can we somehow bring power back to people?” asks Kordek. Blockchain is one profound answer, empowering new entrants to alleviate problems across industries — it could even help us boldly go where no one has gone before.