Dzmitry Lubneuski is the CIO at a1qa, a leading pure-play software testing company. He’s a tech expert with a solid 20-year background in QA
More organizations across industries are incorporating blockchain to optimize business performance. Statista data shows that global expenditure on blockchain applications in 2020 increased twentyfold (paywall) compared to 2017, and every use case within global distributed ledger technology is projected to grow significantly by 2030.
Despite such widespread investments, implementation failures still occur. Without in-depth testing, it’s difficult for companies to ensure failsafe operation of blockchain-driven software. That’s why I’ll focus on the importance of QA and vital verifications for successful introduction of this technology.
Blockchain Benefits For Improved Corporate Functions
Blockchain represents a decentralized system, storing a sequence of records that are cryptographically linked to each other and contain a summary of the preceding information, a time marker and transaction logs. By adopting this technology, organizations can improve operational efficiency due to the following advantages:
• Increased Speed: Companies can optimize transaction processing time, resulting in minimized human errors and faster business environments. Automation capabilities provided by smart contracts contribute to minimizing reliance on traditional documentation and expediting daily workflows, be it insurance claims, real estate transactions or other dealings.
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• Decreased Expenses: By digitizing records and introducing automation with blockchain, organizations can decrease the need for physical paperwork and establish more cost-effective and agile processes.
• Enhanced Visibility: Stakeholders can track the entire history of a transaction and ensure that no fraudulent activities have occurred, which reduces expenses related to detecting fraud, addressing problems and fulfilling regulatory obligations.
• Better Protection: The inability to modify any new records that underwent total encryption aids in avoiding fraudulent or illegal actions, making such systems resilient to hacks by hostile entities.
QA’s Contribution To Upholding Failsafe Blockchain Functioning
Software testing activities performed at the early development stages can help project teams catch issues in blockchain-driven IT products before they escalate into full-fledged problems that are difficult to fix. For instance, before releasing a platform for trading digital currencies, I recommend verifying the backend functionality to confirm the system’s ability to trade, apply different rates on cryptocurrency exchange operations, provide personal accounts for storing currencies and connect to various blockchains. It’s also important to check the front end to ensure it works consistently across target environments, be it different mobile devices or multiple browsers, and that web services are reliable and functional.
Another example: If a company plans to release a smartphone with a cold built-in crypto wallet, but it’s still under development and it’s impossible to run tests on a real physical device, early QA can still be applied using crypto storage wallet emulators. This approach helps prevent problems that could negatively impact further project outcomes.
Companies should consider infusing QA into their development workflows to accelerate the adoption of blockchain into business and:
• Secure operations. Although blockchain’s architecture is its strength, it remains vulnerable to certain threats. Take, for example, the case of the DAO hack, when $60 million of ether was stolen. QA activities can help identify vulnerabilities in smart contracts, consensus algorithms or cryptographic protocols, reducing the chance of breaches.
• Comply with regulations. As this technology is popular among regulated industries such as banking and finance, some blockchain-driven organizations may require anti-money laundering (AML) and know-your-customer (KYC) practices to deter unlawful activities. Testing assists in ensuring that software works in accordance with the requirements formed by business analysts and system architects who have previously analyzed the regulations.
• Attain cost-effectiveness. If glitches are identified at the outset of development, the need for post-release corrections decreases. There’s also a lower risk of breakdowns caused by critical issues.
• Provide scalability. Over time, businesses may expand, which means that more transactions must be handled without a deterioration in speed. QA activities help ensure systems are capable of managing increased load or resource limitations.
• Ensure correct operation. By validating all system components, project teams can confirm that blockchain-driven software operates according to specifications and without breaches that could lead to financial downturns.
Pivotal Aspects To Consider When Compiling A QA Strategy
To ensure the smooth and timely introduction of blockchain technology into current IT products and processes, I suggest paying specific attention to the following:
1. Smart Contracts
Issues in the logic of smart contracts—which automatically implement contract terms when specified conditions are triggered—can provoke negative consequences, including revenue setbacks. To prevent them, companies should emulate practical scenarios and oversee the entire process—from digital signatures to triggering events.
Organizations will want to ensure that the various elements of smart contracts connect internally and with external systems. They’ll also need to conduct security audits to spot vulnerabilities and check on functionality.
2. Overall Velocity
It’s important to ensure that the system can sustain increased loads, handle high transaction volumes, swiftly complete operations with cryptocurrencies, ensure quick smart contract executions and work under a variety of circumstances. Companies should conduct performance tests to confirm that no bottlenecks cause business disruptions.
3. Process Robustness
Software with blockchain at the core deals with confidential financial records, payments and agreements, so I recommend ensuring its trustworthiness and round-the-clock accessibility. With security verifications, companies mimic malicious hacking attempts and penetrate the network to uncover and rectify security gaps or configuration issues.
4. APIs
APIs unite blockchain networks and third-party systems, allowing end users to carry out transactions or integrate with smart contracts. Testing APIs helps organizations ensure the smooth handling of requests, API error management, correct processing of transactions, accurate data retrieval, the high security of encryption methods and more.
5. Adherence To Specifications
Functional testing helps ensure that the entire flow and business logic of a blockchain-driven system are fully aligned with business requirements. By verifying all features—from setting up nodes and connecting them with each other to running decentralized applications—project teams can prevent issues and ensure reliable IT product operation.
Closing Thoughts
Blockchain enables organizations to optimize operational effectiveness and future-proof corporate workflows. By prioritizing its testing during the implementation process, companies can undergo this complex transformation more quickly and help ensure the failsafe operation of intricate software.
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