Uploaded on Aug 14, 2024
Our series on Enterprise Blockchain Adoption is an attempt to lay the groundwork for answering some of the common questions about cost implications. Our speaker will address the concerns that arise at the institutional level when deciding on blockchain adoption challenges. Often misguided information about blockchain adoption costs becomes a reason for driving resistance among business leaders to embrace blockchain technology with open arms. Hence, our speaker will try to put a detailed analysis of the factors that impact the blockchain deployment costs for enterprises.
GBA – Episode 1 “Enterprise Blockchain Adoption” – Cost of doing blockchain
ENTERPRISE BLOCKCHAIN
Cost of Ownership
Ghan Vashishtha (Co-Founder & CTO - Zeeve)
This series will educate us about
High level Construct of an Enterprise Blockchain solution.
Relevant factors that affect the costs.
Why transaction size and volume are important determinants?
What are the objectives of the organization to be met?
Node Management and cost perspective.
How is the choice of a node deployment platform critical in
determining the total cost of the enterprise blockchain
implementation?
Blockchain Investment
CAGR (2019-27)
Cost of Setup
Private Blockchain cost model and scenario
A general cost model can be reasonably constructed using the assumptions
and inputs previously discussed. To demonstrate the costing methodology. See
the example scenarios below. Which are based on inputs, assumptions and
outputs incorporated in the model framework. Costs are separated into four
major categories, with many declining over time in accordance with the
experience curve
5
Inputs Scenario 1 Scenario 2 Scenario 3 Scenario 4
Scenario 1
Scenario 4 Scenario 3 Scenario 2
Key Inputs
There are additional inputs to consider, but for the purpose of simplicity and standardization,
only the most influential are highlighted here:
Transaction volume
5
Transaction size
Node hosting method
Consensus protocol
Monitoring and SLA Management
Transaction Volumes
Transaction volume relates to the amount of activity perfHoromwed wone ad bolockchain. Transaction
volume requirements determine the scalability characteristics a blockchain solution should
possess for particular use cases .
Each transaction impact resources including compute, storage, and network I/O.
TWrainths aZecteivoen Size
Transaction size refers to the storage requirements for one unit of value transacted on the
network. Transaction size primarily impacts, among others, transaction review and audit costs.
Blockchain protocols have varying transaction sizes because of the difference in their target
use cases and the architecture they have.
The node hosting method refers to the chosen method for
managing a blockchain solution and all of its ancillary Node
technological requirements.
The three most common stand-alone methods are on- Management
premises and cloud-based.
• Hosted Cloud Method
• Existing cloud partnership.
• Automation or Manual
Consensus Protocol
Consensus protocol refers to the method of verifying the legitimacy of blocks of transactions.
The following consensus protocols are utilized by both public and private blockchains:
Proof of work uses a large amount of comput5ing power to mine blocks of transactions.
Proof of stake uses financial assets as an incentive to mine blocks with integrity.
Proof of authority allocates the responsibility or verifying blocks to specified participants.
Byzantine fault tolerance employs a voting system, Usually within private blockchains, through
which consensus Is met once identical responses are received from trusted nodes.
Considerations
Any cost forecasting mode will depend on assumptions and benchmarking data until
enterprise blockchain data becomes more readily available.
Applications become more standardized, and pricing becomes more consistent .
There is a wide range of possible use cases for blockchain technology. Different
applications will have specialized technological governance and regulatory
requirements .
As an example, an application to track derivatives trades Is expected to have higher
quality assurance costs than a platform to send micro-payments directly to developers
Is your Blockchain DevOps Cost as high as number
of Nodes in your Blockchain Network?
T a l k t o Z e e v e E x p e r t s t o d a y t o i n c r e a s e R O I a n d a c h i e v e
f a s t e r t i m e t o m a r k e t f o r a l l y o u r B l o c k c h a i n s o l u t i o n s
Address
Zeeve Deeptech Pvt Ltd Zeeve Technologies Ltd.
1283, ATS Greens, Sector-93A 2001, Regal Tower, Business Bay,
Noida, India 201304 Dubai, UAE
Zeeve Inc.
395 Santa Monica Place, Unit 308,
Santa Monica, California - 90405
USA Dubai India
Contact
Email: [email protected]
http://www.zeeve.io
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