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Insourcing blockchain vs outsourcing blockchain

Maciej Zieliński

28 Apr 2021
Insourcing blockchain vs outsourcing blockchain

Despite dynamic development of the blockchain industry, one thing has not changed: the success of the project is closely related to the knowledge and experience of the programmers working on it. Therefore, it is crucial to answer the question which is the better choice: blockchain outsourcing or insourcing blockchain?

Various enterprises, from small startups to biggest banks and shipping companies all over the world, show their interest in the blockchain technology. That’s why there is no universal answer. Before making the decision, most importantly you should thoroughly evaluate your company’s needs, and the characteristics of the blockchain project you want to implement. To make it easier for you, we at Nextrope analyzed pros and cons of both solutions, 

Insourcing Blockchain

It’s worth noting that finding a Blockchain programmer is not an easy task. According to statistics, on average there are 14 job offers for each specialist.  Most likely the situation won’t change for better, as U.S. Bureau of Labor Statisticresearch shows, demand for Blockchain programmers will continue to grow. 

On the other hand, if you succeed to hire a Blockchain programmer, insourcing Blockchain can give you more control over the project and increase work effectiveness. 

Insourcing Blockchain - Pros:

  • potentially more control
  • project’s technological independence 
  • direct and immediate instruction flow

Insourcing Blockchain - Cons:

  • large costs of maintaining internal team
  • possible failure of recruitment process
  • versatility of employed specialists decreasing with time
  • time consuming recruitment process 

Internal teams are often good at general programming tasks but when it comes to the newest technologies like Blockchain, many companies eventually discover that their staff is not properly qualified to develop these technologies. Moreover the recruitment process and onboarding for new employees might turn out rather costly and time consuming. 

insourcing blockchain

Hiring your own team might be beneficial when:

  • You want to diversify an existing team by hiring new employees who may bring new, fresh ideas. 
  • You need a Blockchain programmer for a longer run, not only for a short period.
  • You are able to pay for programmers workplace, necessary equipment, hiring taxes and insurances. 
  • You have the necessary time to introduce the project to the new hire.

Hiring an insource programmer is most often beneficial for large companies that have short and long-term goals related with software development. To make hiring the programmer worthwhile, the team should be able to specify the scope of knowledge and skills that they search need. Only then, the company can effectively look for a suitable employee. 

Outsourcing Blockchain vs insourcing Blockchain

Outsourcing Blockchain most often takes two forms: independent blockchain programmer or a whole software house. The first option is most suitable for short-term projects that require task-oriented results. On the other hand, a software house can definitely satisfy more outsourcing blockchain related needs: from a single developer for a specific task to an interdisciplinary team of blockchain experts that besides programming can also take care of creating business logic or provide legal advice. 

Modern software houses provide not only programming but also consulting services, the experience of it’s specialists can give you a new, fresh look at your project and allow you to adjust it to technological reality. 

Outsourcing Blockchain - Pros:

  • lower project realization costs 
  • vast list of various available technologies and tools 
  • accelerating the product launch 
  • access to comprehensive knowledge of blockchain experts, including but not limited to programmers
  • no need for recruitment process 
  • possibility to fully focus on the remaining elements of the project
  • if needed - faster project scaling
  • predominantly high product quality (depending on chosen company)

Outsourcing Blockchain - Cons:

  • technological expertise comes from outside the company
  • no direct control over the project (however, a good software house allows you to contact not only the project manager but also any employee responsible for your order) 
insourcing blockchain

Outsourcing Blockchain is most beneficial when:

  • You know specifically what you need from the team and you can communicate these needs (in the case of a team or a freelancer that connects closely with your team)
  • You don’t have enough knowledge about the technical specification but you know exactly what effect you want to achieve 
  • You created a specification and tasks list but have limited time to hire and train new employees
  • You want to minimize costs - outsourcing is most likely less costly than maintaining an internal team 

Outsourcing Blockchain vs insourcing blockchain - Nextrope

Nextrope is a polish software house providing outsourcing Blockchain services. Each project we approach with extraordinary attention to details and personal involvement. Among our clients we have revolutionary financial and legal startups, and one of the biggest banks in Poland - Alior Bank. More stories of our success here. 

With years of experience, we simply know what makes projects fantastic. If you want to know why Nextrope - contact us for free consulting: contact@nextrope.com

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What is Account Abstraction?

Karolina

10 Nov 2023
What is Account Abstraction?

Account abstraction is a new way of thinking about how users interact with blockchains. Instead of using traditional externally owned accounts (EOAs), account abstraction allows users to create and manage their accounts using smart contracts. This has a number of potential benefits, including improved security, enhanced privacy, and increased flexibility.

Table of Contents

What is account abstraction?

Account abstraction is a concept that, at its core, aims to simplify the user's interaction with blockchain networks. It is a transformative approach that seeks to mask the technicalities of blockchain operations from end-users. It is making transactions as straightforward as sending an email. Account Abstr. allows users to interact with the blockchain without worrying about the underlying technical details.

How does account abstraction differ from the traditional model?

In the traditional account model, each user has an EOA. EOAs are controlled by private keys, which must be kept secret in order to protect the user's funds. Acc. abstraction allows users to create and manage their accounts using smart contracts.

Historical Context

The journey towards acc. abstraction began with the first generation of blockchain technologies, characterized by their "one-size-fits-all" approach to account management. Bitcoin, for instance, introduced the concept of accounts and transactions in a form that was accessible to tech-savvy individuals but remained perplexing to the layperson. Ethereum expanded on this by introducing smart contracts, which opened the door to programmable transactions but did not alter the fundamental account structure. The idea of acc. abstraction has been discussed in the Ethereum community for several years as a part of various Ethereum Improvement Proposals (EIPs), particularly as a feature to be potentially implemented in Ethereum 2.0. It is a direct response to the need for a more versatile and user-centric design that can cater to a broader audience and spur the widespread adoption of blockchain technology.

The Technicalities of Account Abstraction

Account abstraction is not merely a theoretical construct but a technical innovation with specific mechanisms underpinning its operation. In essence, it alters the way transactions are initiated and executed within a blockchain network.

How Account Abstraction Works

Under traditional blockchain models, initiating a transaction involves an externally owned account (EOA) signing a transaction with a private key. This transaction is then broadcast to the network for validation and inclusion in the blockchain. Account abstraction, however, replaces this process with a more flexible one. Here, every account is a smart contract, and transactions are messages sent through these contracts. These smart contracts can encode complex rules for transaction validation, beyond what EOAs can do, such as multi-signature requirements or conditional transactions based on certain triggers.

The technical crux of account abstraction lies in the smart contract’s ability to define its own conditions for transaction execution. This means that user accounts can have unique security protocols or automated operations without the user needing to understand the underlying smart contract code.

Hey! Are you interested in the latest technologies in the blockchain area? be sure to read the article 'Top Zero-Knowledge Proof Projects to watch in 2023'

The Benefits of Account Abstraction

The implications of account abstraction are profound, offering a range of benefits that can enhance the blockchain experience for users and developers alike.

Improved User Experience

One of the most significant advantages of account abstraction is the improvement it brings to user experience. By abstracting away the complexities of key management and transaction rules, it presents a more intuitive interface for users.

Enhanced Security Features

Account abstraction also allows for the implementation of advanced security measures. Since each account can define its own logic, users can tailor their security settings to their specific needs. For instance, one might set up an account that requires additional verification for transactions exceeding a certain value or restricts withdrawals to certain addresses.

Future Implications

The future implications of account abstraction are vast. As the technology matures, it could become a standard feature of blockchain networks, potentially making the current distinction between user accounts and smart contracts obsolete. This could lead to a new wave of blockchain applications that are both powerful and accessible, bringing us closer to the vision of blockchain technology as a seamless part of everyday life.

Challenges and Considerations

Technical Limitations

One of the primary technical challenges of Acc. abstraction lies in its integration with existing blockchain protocols. Current networks are optimized for the EOA model, and introducing a new account structure necessitates significant changes to the core protocol. This includes modifications to the way transactions are propagated in the network, how gas fees are calculated, and how the state of the blockchain is managed. Ensuring that these changes do not compromise the network's performance or security requires careful planning and extensive testing.

Compatibility with Current Systems

Another consideration is the compatibility of account abstr. with the vast ecosystem of existing blockchain applications and services. Wallets, exchanges, and other services have been built around the traditional account model. Transitioning to an acc. abstraction model will require these services to update their infrastructure, which may be a complex and resource-intensive process. Furthermore, there is a need for standardization across the industry to ensure that different implementations of account abstr. can work seamlessly together.

Conclusion

Acc. abstraction represents a significant leap forward in the quest for a more user-friendly blockchain experience. By streamlining the transaction process and offering enhanced security features, acc abstraction has the potential to make blockchain technology more accessible to a broader audience. However, the path to widespread adoption is not without its obstacles. Technical challenges and compatibility issues must be carefully navigated to integrate it into the existing blockchain landscape.

Key Takeaways

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How to Add Gnosis Chain to MetaMask: A Simple Tutorial

Karolina

03 Nov 2023
How to Add Gnosis Chain to MetaMask: A Simple Tutorial

As the cryptocurrency ecosystem expands, there is an increasing need for various blockchains with distinct capabilities. Gnosis Chain enters the scene, offering a selection of unique characteristics. By integrating Gnosis Chain with MetaMask, users can access a more comprehensive array of decentralized services. We will walk you through the steps to add Gnosis Chain to your MetaMask wallet in this tutorial.

Table of Contents

Prerequisites

Setting up MetaMask

Before exploring the integration of Gnosis Chain, it is crucial to have MetaMask installed and operational:

  • Download and Install: If you have not done so already, visit the official website to download and install the MetaMask browser extension.
  • Setup Account: After completing the installation, create your account and make sure to remember the provided seed phrase. This phrase serves as your primary means for account recovery, so keep it secure.
  • Secure Your Account: Protecting your MetaMask account is of utmost importance. Use a robust password and never disclose your seed phrase to anyone.

Gnosis Chain

It is always helpful to have a basic understanding before incorporating any new blockchain into your wallet:

  • Gnosis Chain Overview: Gnosis Chain, a rising star in the blockchain world, brings a range of decentralized solutions to the table, such as prediction markets and decentralized trading platforms.
  • Benefits & Features: Among Gnosis Chain's main selling points are its accelerated transaction speeds and potentially lower fees when compared to congested networks.

Tutorial: How to Add Gnosis Chain to MetaMask

In the top right-hand corner of your browser, you'll find the wallet. If pinned, click on the MetaMask fox icon; if not, click the three dots in the top-right corner. The following screen will appear:

An option to expand the wallet to a new browser page is available by clicking "Expand view:"

This action will launch MetaMask in a new tab:

By clicking on the ‘Ethereum mainnet’ in the top left corner, you can add another network. Click ‘Add Network’

Choose option ‘Add a network manually’

Then, input the information below:

Network Name: Gnosis Chain formerly xDai

RPC URL: https://rpc.gnosischain.com

ChainID: 100

Symbol: XDAI

Block Explorer URL: https://gnosisscan.io

After saving the settings, Gnosis Chain will be added to your network.

The Benefits of Adding Gnosis Chain to MetaMask

With multiple blockchains becoming more common, integrating Gnosis Chain with MetaMask offers numerous advantages:

Expanded Capabilities: Accessing Gnosis Chain through MetaMask opens up a collection of exclusive applications and features inherent to this particular blockchain, which may include unique dapps or cutting-edge financial products.

Diversification: The crypto domain is extensive and constantly growing. By incorporating various chains like Gnosis into MetaMask, you broaden your potential investment opportunities and decentralized application experiences, ensuring no opportunities are missed.

Speed & Cost-Effectiveness: Network congestion and high gas fees on established platforms like Ethereum can discourage many users. Gnosis Chain's architecture has the potential to provide relief through quicker transaction times and more affordable fees.

In summary, as the possibilities within the crypto sphere continue to evolve, tools like MetaMask grant users access to this expanding world. By adding chains like Gnosis, users can stay ahead in this decentralized revolution.

Conclusion

By bridging platforms like Gnosis Chain with accessible tools like MetaMask, individuals not only amplify their engagement with decentralized applications but also fortify their position in this expansive realm. The integration of Gnosis Chain to MetaMask epitomizes the evolution of the crypto landscape – a testament to its ever-growing diversity and potential. As we continue to delve deeper into the decentralized future, tools and integrations like these will undoubtedly play a pivotal role in shaping our digital experiences and opportunities. Whether you're seeking more efficient transactions, diverse dapp interactions, or simply a broader understanding of the crypto ecosystem, this guide's steps open doors to a new horizon. 

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