Blockchain has been initially introduced to the world as the technology behind cryptocurrencies. Still, it is now rapidly becoming an attractive technology catching the attention of big companies who recognize its enormous potential and far-reaching possibilities. Recently there has been a shift from exploring what blockchain is to finding practical applications and next-gen opportunities.
Interest in blockchain technology is multiplying among businesses around the world. PwC’s Global Blockchain Survey showed that 84% of company executives who were surveyed are actively involved in blockchain. The future is exciting for blockchain technology as Grand View Research Analysis forecasts its market size to exhibit a Compound Annual Growth Rate of 37.2% over the next six years.
Even though blockchain is often associated with Bitcoin, cryptocurrency was just the first use case of the technology. Blockchain has come out of the cryptocurrency’s shadow and is now being implemented in healthcare, retail, media, and food industries. The technology has even been considered as a tool for voting purposes. Despite the numerous industries that use blockchain, FinTech remains the largest user of the blockchain technology by far. While the technology is young, the possibilities seem endless. The CDC is exploring blockchain for public health; Microsoft is using digital IDs to improve identity security; municipalities are testing blockchain for voter fraud protection; retail businesses are keeping track of loyalty cards; it is also used for maintaining registries of items like firearms and medical records.
If you are considering using blockchain, the PwC’s Survey provides a table to decide if the technology is appropriate for your business.
Blockchain Development Outsourcing
Blockchain is a brand new technology, and everyone is searching for a way to incorporate it. If you want a blockchain expert working on your team, there are a few considerations you need to make. Should you outsource your blockchain project or should you attempt an in-house approach? Let’s look at some facts that can help you answer these questions.
With the surging popularity of blockchain technology throughout various industries, the need for skilled blockchain developers is growing astronomically. According to Upwork’s recent report, the demand for blockchain developers skyrocketed, increasing an astounding 6,000% over the last year. Everyone is looking for trusted, highly skilled professionals that can help with blockchain-related products and services. Unfortunately, the increased demand is not met by an adequate supply of experienced professionals. Because blockchain is so new, there are not enough courses offered to train new blockchain developers, and those who are highly educated are already working on projects that they are passionate about or starting their startups. The balance of supply and demand is not likely to be resolved anytime soon, as there are not enough people capable of training others in blockchain tech.
With the extreme shortage of skilled blockchain engineers, businesses have no other choice but to compete for available talent by offering higher pay rates, an unfortunate consequence for a company who need the technology. In 2018, Paysa.com reported that the average salary for blockchain developers in the US was $95,545, with Switzerland paying the highest salary for their in-house developers up to $180,000 a year. Tech giants like Microsoft, IBM and Facebook who already have highly skilled developers on staff can implement an in-house solution, for others who don’t already have the talent, there is a substantial risk of not developing the technology properly. Therefore outsourcing to experienced developers at an affordable price becomes a tricky but essential part of the development process for businesses who wish to overcome the high rates.
What to Consider Before Engaging with a Service Provider
If the decision to incorporate blockchain into your business process has been made, the next step is to find a service provider who will help you with your specific needs. When choosing a blockchain development company, there are a few basic things you need to keep in mind. We came up with a shortlist of questions that we suggest you answer before choosing a service provider.
First Things First
Before making a decision, a product owner needs to answer a few questions about his business. First of all, decide whether you want to outsource your blockchain project to a service partner. Outsourcing can benefit your business by saving you money and alleviating the workload so that your team can focus on core needs.
Another question is, how much can you afford? We suggest that you focus on finding a service provider within your budget that has a reputation for sticking to deadlines and delivers a quality product without adding overtime.
2. Look In The Past
What is the company’s reputation? Reviews of past clients can shed light on their track record for on-time delivery and if they can stay within a budget. Have they worked previously on projects involving blockchain technology you are interested in? It’s easier to build trust in a team that has completed projects that match your companies own goals and expectations and isn’t trying to push things you don’t need.
3. Evaluate Team Skills
Blockchain is an exciting new technology with only a limited number of experienced developers in its field. However, it is not written in a secret language only available to select few. Fluency in other languages like C++, Java, Python, and others is something to pay attention to. Reviewing the team’s other coding skills can inform you about their potential to complete your project.
Have the blockchain provider team members worked with Ethereum or other frameworks? The provider you can trust needs to be familiar with the core philosophy of blockchain and be aware of issues blockchains face (such as scalability), and be ready to provide solutions that will work for your business.
4. Customer Service
“Your wish is my command” should be your blockchain provider’s mantra. Are they open to working on your terms and adapt if needed? The blockchain provider you pick must understand your priorities and needs, and also know how to meet them. Find a service provider that will cooperate well with your current team.
Blockchain development shot up in recent months and is only going to continue to spread like wildfire. Companies that keep up with current trends realize that they can boost their businesses with blockchain technology. There are not enough skilled blockchain developers on the job market, which consequently drives the rates up. Because blockchain technology is complicated, intricate and requires a unique skill set, you’ll need to hire developers who are experienced in the field. Outsourcing your blockchain needs gives your business access to more talent, lower rates, and more flexibility. If you are not one of the tech giants and don’t have the tech capability, time or expertise for an in-house solution, then outsourcing is the way to go.