No matter which sector you work in, blockchain technology and cryptocurrency will likely be familiar to you due to its secure, transparent, adaptable features that enable businesses to easily adapt to changes, such as data or money transfer costs being decreased due to Blockchain's widespread implementation.
Many consider Blockchain the ideal way to protect financial transactions while streamlining trade relationships and optimizing supply chains - yet selecting from among so many platforms only further complicates matters - we hope that with our help in this article, you will transform your business by choosing the perfect Blockchain platform.
This blog post is written for anyone wanting to start using Blockchain or cryptocurrency within their business or digital product. Yet, they're confused as to the operating methods and which platform would best meet their needs. Furthermore, this informational piece may help if hiring developers who specialize in particular platforms or keeping up-to-date with emerging trends is also on your mind.
We will cover the basics of blockchain technology in this post and what to watch out for when making decisions about platforms using them. In addition, we provide an updated list of popular blockchains.
What Is Blockchain?
Blockchain networks consist of duplicate digital transaction ledgers spanning an entire network. Every computer connected to it shares equal rights among itself, acting both as client and server functions for seamless operations that mirror traditional peer-to-peer networks. But what distinguishes blockchains from other systems is how the data is stored.
Every transaction is recorded as an independent record or block that is added linearly to earlier entries in a chain. Each user on the network then reviews newly added records before agreeing with them as accurate - adding them to the ledger only if a majority concur that this version of it is accurate. Afterwards, updated records are distributed among nodes within the network to make sure everyone always has access to the latest version - making this method virtually tamper-proof and more secure than traditional data storage since once cryptographically shared records become impossible to edit and any details within them!
According to 93% of financial experts, cryptocurrency and blockchain technology can be very advantageous for businesses and have already received widespread adoption across industries and sectors. Implementation has become widespread, whether through enterprise blockchains or open-source systems.
- Effective protection from fraud and unlawful activities by encrypting all data for an irreversible record is provided through this technology.
- Data stored across several computers instead of on just one server makes it more challenging for hackers to gain entry to it.
- Transparency is ensured because all network users with appropriate permission access can simultaneously see all relevant data at any one time.
- Blockchain keeps track of every step an asset takes on its journey and makes that information available for viewing by any user.
- By placing all essential information onto a blockchain, transactions can be completed more rapidly and effectively without the need to exchange paper documents.
- Smart contracts enable automated transactions by initiating subsequent steps without human or outside intervention, increasing corporate efficiency significantly.
Important Criteria When Searching For The Ideal Blockchain Platform
Numerous industries have already successfully adopted blockchain technology. This innovation can now be found across industries as diverse as e-commerce, real estate, healthcare, supply chain manufacturing and finance - to name a few. Food and agriculture alone will generate $1.48 billion through Blockchain by 2026 alone! With increasing interest in Blockchain, tech platforms are now far more accessible.
There are currently over 12,000 distinct virtual coins and at least 1,000 blockchain networks out there, making understanding blockchain technology and selecting your platform all the more complicated. To make research simpler, we've put together this handy list of things you should check before joining any blockchain network!
Actual Platform's Speed
Blockchain scalability rate measures how many transactions per second (TPS) that a network can support at once, with differences depending on its platform: Ethereum supports 25 TPS while Bitcoin only handles 7 due to smart contracts; 56 can handle Cardano 250 transactions per second as well as Ripple 1500 or 29,000. Litecoin handles them all seamlessly!
But is that what's necessary? Well, that depends on the data type that needs processing by your network. For instance, if your company develops payment software or high-transaction gambling apps with high transactions per second requirements for processing purposes (TPS platforms are better), but low TPS may suffice if used to run basic data management systems, remember. However, lightning-fast processing speeds might compromise other elements, like platform security.
Available Functionality
Owing to their blockchain architecture, all blockchains share certain common features; however, their applications vary considerably in terms of features and use cases. Let's compare Bitcoin, Ethereum and Ripple: Bitcoin was designed as a decentralized virtual currency, while Ethereum focused mainly on developing smart contracts that assist businesses in automating administrative tasks or developing decentralized applications; in comparison, Ripple developed currency transfer technology similar to SWIFT designed to simplify and lower cross-border financial transactions costs.
Given their distinct goals, it follows that their methods for processing data may also vary widely; processing times vary, and features provided vary significantly as well. Therefore, companies must conduct an in-depth evaluation of which blockchain network meets all their requirements for success.
Network Adoption Rate And The Community Around It
Network users, brands using it, and the existence of an ecosystem centered on Blockchain should all be carefully assessed when choosing an ecosystem to work within. Simply put, the larger its community becomes, the easier it will be for users to get assistance if something goes amiss. Needs and technology continually shift. Therefore, as more users join a platform, its chances of receiving regular updates that address potential bugs or security flaws that arise over time increase.
Platform Security
Blockchains were designed to offer more secure data exchange and storage by default; this doesn't mean, though, that data security concerns should be ignored, or all platforms should be treated equally - you should still double-check each platform's security features, specifically if your company handles confidential or sensitive material.
Your money and data can be protected by investigating which cryptographic techniques the platform utilizes, how records are validated in the network, when updates occur and how users are validated.
Public Or Private
While looking for a platform, consider which type of Blockchain would best benefit your business. Public and private blockchains are two main forms of this technology.
Big businesses frequently utilize private blockchains because they enable them to control who can participate, what data can be accessed, and what transactions they initiate. Therefore, before joining a private network, an invitation is required. You will then need to be verified either by its administrator or a set of guidelines provided. In this manner, the ledger's exclusive users include partners or employees of that business, who may access, view, or add data.
In a private blockchain, only its owner has the power to replace, amend, override, and remove unnecessary entries, something not available with public chains. Enterprise blockchains operate far quicker than their public counterparts due to needing fewer users in order to come to a consensus quickly on transactions and activities being validated faster by private networks than public ones do.
Public blockchains emphasize transparency and user participation; anyone can join a public network, take part in transaction validation, and enjoy all other user rights. Furthermore, all code used by this type of Blockchain is freely accessible; anonymity for each user can also be achieved using public and private keys that uniquely identify each person on this type of chain; additionally, experts should also help select an ideal choice to meet business requirements. You should carefully weigh both types before choosing which will best meet them, and consult experts to assist your decision-making.
A Number Of Nodes
Nodes play an integral role in blockchain networks as they ensure their security and functionality. Every node connected to a network, whether physical or digital, has the responsibility of validating and adding data to the Blockchain while adhering to network rules and upholding those that govern each node's operation.
Theory suggests that the more nodes there are in a network, the harder it would be for anyone to change any node or data stored therein. Unfortunately, however, transactions take longer to be confirmed, and consensus is reached once transactions occur; this issue becomes particularly prominent with widely used publicly accessible blockchains with hundreds or even thousands of nodes; they remain secure, but their functionality falls far short of expectations.
Enterprise blockchains tend to operate more quickly because they only need approval from a small group of previously verified nodes for transactions; this, however, comes at the cost of reduced security. It would help if you weighed your priorities; an enterprise network would likely work better for quickly verifying and storing deals, while public blockchain systems provide greater protection and can support truly decentralized networks more securely than enterprise systems can.
Read More: Benefits Of Blockchain In Different Business Environment
Which Blockchain Platform To Choose For Project?
One way of characterizing Blockchain technology is as a "trustless" network. But this does not imply that users don't trust one another--quite the opposite, they don't have to have mutual faith! In fact, improved security, data transparency, traceability, and control over who joins private blockchains and can view data are all provided by it, allowing minimal opportunity for data tampering. At the same time, all members within can trust in its authenticity and integrity.
And you can still take advantage of all the advantages offered by blockchains whether or not you opt to build your enterprise blockchain network from scratch. While many businesses have experienced great success creating their enterprise networks from the ground up, using one of the existing platforms may offer several advantages over doing it on your own - for instance:
- Significantly Reduced Expenses Our research indicates that creating a blockchain app may cost anywhere from $5,000 to $200k depending on its scope; only fees apply when using existing platforms (there may also be fees charged when switching platforms.)
- Your company could adopt Blockchain technology much quicker.
- Your concerns around bug fixes, platform upkeep or updates won't require ongoing assistance from blockchain developers or extensive expertise from you - only real benefits!
- Suppose you have any problems or inquiries concerning the selected platform. In that case, you can rely on the community's support and assistance (for custom platforms, you must rely on your abilities or the development company that built the network).
- New tools, features, and capabilities are frequently added to existing platforms by the owners of the Blockchain or by community members.
Before leaping cryptocurrency and blockchain technologies, however, you need first to become informed of all your available options and take an educated stance regarding which of over one thousand platforms offering various features will best fit you and your goals.
Ethereum
Ethereum is one of the oldest and best blockchain platforms due to its appeal among software developers. Ethereum coins may serve as a currency replacement. However, their primary use lies in creating decentralized apps (apps) and smart contracts on this platform.
Ethereum is built upon smart contracts - automated programs stored on its Blockchain that perform specific actions when certain conditions are met. Unfortunately, Ethereum currently uses PoW (Proof of Work), resulting in significantly slower transaction processing rates compared to other platforms, as a result of which its TPS numbers remain significantly lower compared to competitors such as Facebook or Microsoft platforms. They intend to switch over to Proof of Stake by 2022, which should improve functionality further and speed up processing speeds on Ethereum.
Hyperledger Fabric
Linux Hyperledger Fabric provides an open-source, enterprise-grade blockchain development framework to build apps and solutions with permission. Fabric is capable of producing large, complex blockchain solutions because its modular architecture enables complex components to plug in seamlessly. Furthermore, an extensive selection of plug-in parts allows users to add whatever parts are necessary. As the Hyperledger Fabric network requires verification before joining, each individual must go through verification in order to join.
Ripple
Ripple is another prominent blockchain platform with a financial focus. It is utilized by hundreds of financial institutions, including American Express and Santander, due to its transparency, quick response time and low transaction costs. Ripple also utilizes its currency called "XRP or Ripple," gaining widespread acclaim alongside popular cryptocurrencies like Ether and Bitcoin; its primary aim is to facilitate international cross-border payments with minimal fees involved.
Ripple's XRP blockchain technology offers greater scalability and faster transactions compared to others, thanks to an advanced consensus process that confirms transactions four or five seconds faster. At present, they are also working on adding features related to smart contracts onto their platform.
Stellar
Stellar provides financial institutions with another solution for local and international transfer of digital currency to fiat money while being entirely decentralized. Since developers and contributors control every aspect of its network, banking solutions created using it are scalable, adaptable and reasonably priced - processing up to 1000 transactions at once while verifying them within three to five seconds makes Stellar one of the fastest blockchains.
Corda
Corda was initially developed for use within financial institutions; it has since expanded to support digital assets, insurance and healthcare industries. Corda works differently from other permissioned blockchain platforms despite belonging to this category; instead of batching trades together into blocks using peer-to-peer distributed ledger technology, it handles each trade individually in real time with no built-in tokens or cryptocurrency use whatsoever.
Corda is distinguished from other permissioned blockchain networks by enabling multiple parties to collaborate within its system simultaneously, unlike most permissioned networks that restrict membership to individual parties only. Furthermore, its platform facilitates writing and deploying smart contracts using Java or Kotlin programming languages for deployment on Corda blockchains.
Solana
Solana, like Ethereum and Cardano, was designed specifically to host decentralized applications. By providing two features not yet offered by Ethereum's Blockchain - quicker operation and lower transaction fees - Solana quickly rose in popularity. Solana uses a proof of stake (PoS) blockchain instead of proof of work (PoW), making it more eco-friendly while being one of the fastest blockchain platforms, averaging 3000 TPS; its team claims it could reach 65000 TPS, placing Solana alongside Visa cards in terms of speed!
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Conclusion
By 2026, the blockchain market will reach an estimated global value of $67.4 billion and continue to develop at an incredible speed, creating many applications within business settings. As there are so many platforms already out there offering blockchain functionality solutions, businesses should take their time when selecting an ideal enterprise blockchain solution based on various uses and functionalities offered. This decision-making is particularly crucial given their versatility of uses and functions offered.
