You’ve probably heard about blockchain and cryptocurrencies, regardless of the field you work in. Because it is open, adaptable, and safe, blockchain development has also grown in popularity among businesses. Even so, it might cut down on their data or cash transfer costs. Blockchain seems to be the perfect solution for optimizing supply chains, speeding trade, or securing financial transactions. However, the expanding selection of platforms just adds to the difficulty of making a decision. You can change your business by selecting a blockchain development platform with the aid of this article.
This post is for you if you want to start using blockchain in your company as well or if you want to construct a digital product with cryptocurrency to draw in more consumers but are confused about how bitcoin functions and which platform you should even choose. However, this blog post will also be helpful if you’re wanting to hire developers that are knowledgeable about a particular platform or simply want to stay on top of the latest developments.
We’ll go through the fundamentals of blockchain technology in this post, along with some things to look out for as you weigh your alternatives. A list of blockchains with the current most widely used platforms will also be provided.
The Blockchain
A blockchain is simply a copy-and-distributed digital ledger of transactions that spans the whole network. The blockchain network resembles a typical peer-to-peer network in that each computer is connected to the others, has an equal amount of rights, and serves as both a client and a server.
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But what makes blockchains special is how they keep the data.
Every transaction is recorded as a distinct record (block), which is then sequentially appended to the prior entries to form a chain. The newly added records are then verified by each network user. The information is entered into the ledger if the majority of users concur that it is accurate. The new record is then distributed to all other network nodes, guaranteeing that everyone has access to the most recent version of the ledger. It is also difficult to modify any information contained in the record once it has been cryptographically dated and shared, making it nearly tamper-proof and significantly more secure than any other means of storing data.
According to 93% of the financial experts, blockchain technology and cryptocurrencies can be of enormous use to businesses and have essentially already attained widespread usage. And it’s simple to understand why businesses across a variety of industries are implementing this technology, whether they choose commercial blockchain or open-source blockchain:
- By producing a record that cannot be changed and is encrypted end-to-end, it aids in preventing fraud and unlawful behavior.
- Data is distributed across a network of computers rather than being stored on a single server, making it difficult for hackers to access the data.
- Full transparency is made possible by the fact that the same information is simultaneously accessible to any network user with authorization access.
- The blockchain keeps a record of every step an asset takes and makes it available to all users.
- By storing all necessary information on a blockchain and removing the need to exchange traditional documents, transactions become quicker and more effective.
- Smart contracts make it possible for transactions to be automated by automatically starting the subsequent stage of the process when certain criteria are satisfied. This increases corporate efficiency by removing the need for human or outside intervention.
Criteria to Pick the Best Blockchain Platform
Blockchain technology is already successfully employed in a number of businesses. The services of a blockchain development consulting is used in a variety of industries, including e-commerce, real estate, supply chain and manufacturing, banking, and healthcare. Blockchain will, for instance, create $1.48 billion in the food and agriculture sectors alone by 2026.
The demand for blockchain technology has resulted in a huge increase in the number of platforms that are currently available. There are currently over 12000 different virtual currencies and at least 1,000 separate blockchain networks.
Learning how blockchain functions is challenging enough without having to choose which platform to use, especially because each one has various features and functions. However, we have compiled a list of topics you should look at before hopping on the blockchain bandwagon to make your research a little easier.
Speed of Platform
A network’s capacity for TPS (transactions per second) is indicated by the blockchain’s scalability rate. And the amount differs from one platform to another: Ethereum can process 25 transactions per second, compared to Bitcoin’s 7 (due to smart contracts). Meanwhile, Litecoin can manage 56, Cardano 250, Ripple 1500, and even Solana 30,000.
However, do you really require that much? Depending on the type of data the network will be processing at that point. A higher TPS platform will be significantly more effective in this case if your organization is working on producing payment software or, let’s say, a high-transaction gaming app. A platform with a low TPS, however, can be more than adequate for a straightforward data management system.
Additionally, keep in mind that other factors, such as platform security, can suffer as a result of the lightning-fast processing speed.
Available Functionality
Despite the fact that all blockchains use the same technology, they might have very different features. Let’s contrast Bitcoin, Ethereum, and Ripple as an example. The major application of bitcoin is as a decentralised, virtual form of money. Ethereum is more interested in developing smart contracts that let businesses streamline operations and create decentralised applications. In contrast, Ripple was developed as a currency transfer system with a similar goal as SWIFT: to simplify and lower the cost of international financial transactions.
Since their primary objectives are so dissimilar, it follows that their methods for processing data, the length of time it takes them to do so, and the features they can provide all differ greatly. That makes it even more crucial to do your homework on the many blockchain networks available and the features your company could want.
For instance, not every platform supports Smart Contracts; therefore, if that is a feature you require, make sure the platform you are contemplating does.
Platform Security
Blockchains are designed by default to be a significantly more secure way to store and share data. However, that doesn’t imply you should disregard data security concerns or take the stance that all platforms are equally safe. In fact, you want to double-check the security protections each platform provides, especially if your business deals with private or sensitive data.
You can assure the security of your money and data by looking at the cryptographic techniques the platform employs, how records are confirmed in the network, how frequently the platform is updated, and how the users are verified.
Private Or Public
You should think about what kind of blockchain will be most beneficial for your business as you look for a platform to join. Private (or commercial) blockchain and public blockchain are the two basic varieties of blockchain.
Large corporations frequently employ private blockchains because they can control who can join them, what data they can access, and what transactions they can start. Therefore, you must first receive an invitation in order to join a private network. You will also need to be verified, either by the network administrator or by a set of rules put in place by the administrators, before being allowed access to the network. This limits who can join, read, and add data to the ledger to the company’s workers or partners.
In contrast to public blockchains, the owner of a private blockchain is able to modify, update, override, and even remove unneeded entries.
Enterprise blockchains are significantly faster than public ones, which is another distinction. Private blockchains process and validate transactions and activities much more quickly than public ones because they require fewer users to attain consensus.
On the other hand, public blockchains emphasize participation and openness. Everyone has the same privileges as other users when they join a public network, participate in validating network transactions, and participate. The software code is also open-source and accessible to all users. Another advantage of public blockchains is that each user can remain anonymous by using their individual public and private keys, a form of cryptographic code, to establish their identity.
You should weigh the benefits and drawbacks of each blockchain type before deciding on one for your business and talking it over with your team. It’s also a smart idea to consult specialists for assistance in making the greatest choice possible for your requirements.
Nodes
Nodes are a crucial component of blockchain networks because they maintain the safety and functionality of the entire network. Each node, which is just a network-connected device, is in charge of confirming and accepting data into the blockchain and making sure that every node is abiding by the network’s regulations. Accordingly, it would theoretically be more difficult to modify the node itself or the data in the blockchain the more nodes there are in the network. The fundamental issue here is that as the network grows, it takes longer for a transaction to be confirmed and for consensus to be reached across the nodes. This is a particular issue with the most widely used, open-to-public blockchain networks, which include hundreds of nodes and are safe yet have subpar performance.
Because only a small number of previously confirmed nodes are required to accept each transaction, enterprise blockchains often operate more quickly, albeit at the expense of slightly less security. In this case, you must decide what is more important to you. If you require the network to quickly authenticate and store transactions, an enterprise network is the preferable choice. However, public blockchain solutions would be significantly superior in this case if you prefer the blockchain to be more safe rather than speedier or if you want to employ a completely decentralised network.
Top Blockchain Platforms 2023
We have created a list of the major blockchain systems available right now, including both open-source and enterprise-focused ones, to provide you some background on this subject.
Ethereum
Due to its popularity among software developers, Ethereum is one of the most widely used and one of the oldest blockchain platforms.
And while Ethereum tokens can be used as an alternative currency, it is more frequently employed as a platform to construct decentralised applications and smart contracts (dapps). Ethereum is built on the concept of “smart contracts,” which are code-based automation programmes that are stored on Ethereum and execute certain functions when specific circumstances are satisfied.
The PoW (Proof of Work) consensus technique, which is significantly slower in terms of speed, is now used by the Ethereum platform. Because of this, Ethereum has a lower TPS than other platforms. However, they intend to move to Proof of Stake in 2022, which should enhance the platform’s functionality.
Hyperledger Fabric
Hyperledger Fabric is an open-source, permissioned blockchain development framework called Hyperledger Fabric that is used to create products and services. To build massive, complicated blockchain solutions, Fabric offers a modular architecture that enables complex systems and components to connect and function as plug-and-play. Additionally, it offers a sizable library of plug-and-play components that users can add as required.
All participants in the blockchain must first be vetted and authorized because the Hyperledger Fabric network is permissioned.
Ripple
Ripple is a well-known blockchain network with an emphasis on finance. Numerous financial organizations, like American Express and Santander, rely on it because of its openness, quick reaction time, and affordable transaction rates. Thanks to its own currency, “XRP or Ripple,” which has gained popularity as a cryptocurrency akin to Ether and Bitcoin, its primary goal is to enable worldwide, cross-border payments with low fees.
XRP is more scalable and speedier than other blockchains since it is built on cutting-edge blockchain technology and has a slightly different consensus technique than other platforms; XRP transactions are confirmed in four to five seconds. Ripple is currently working on integrating smart contract functionality into their platform.
Stellar
Another alternative for the banking sector is Stellar, which enables internal and international transfers of digital currency to fiat cash. It does have one distinctive quality, though: it is totally decentralised. Because developers and contributors have total control over the network, they can create financial systems that are reasonably priced, scalable, and adaptable. Being able to confirm a transaction in 3 to 5 seconds and handle 1,000 transactions at once makes it one of the fastest blockchains.
Corda
Corda was initially developed for use in financial institutions, but it has now been modified to use for other sectors like healthcare, insurance, and digital assets. Despite being a particular kind of permissioned blockchain network, it functions quite differently from the others. It employs peer-to-peer distributed ledger technology, but all transactions are handled in real time rather than being grouped together into blocks. It also doesn’t make use of any built-in tokens or cryptocurrencies.
The fact that Corda permits various parties to cohabit and cooperate inside the same network system, in contrast to other permissioned blockchain networks, further distinguishes it from the competition. Additionally, the platform supports the smart contract capability, allowing Java or Kotlin to be used to create and deploy smart contracts on the Corda blockchain.
Solana
Solana is a blockchain platform akin to Ethereum and Cardano, two of the most well-known dApp blockchains, that is made exclusively to host decentralised apps.
Faster operation and reduced transaction costs are two benefits that this platform offers that the Ethereum blockchain does not currently have. Solana is more ecologically friendly than Ethereum and Bitcoin because it uses a PoS (proof of stake) blockchain rather than a PoW (proof of work) blockchain. But more crucially, with an average TPS of 3000, it’s one of the quickest blockchain systems in the business. The Solana team, however, believes that it can even achieve 65000 TPS, which would make Solana as quick as Visa cards.
Conclusion
By 2026, the market for blockchain will be worth $67.4 billion. And given how quickly blockchain technology is developing, the market will undoubtedly come up with a number of novel uses for it. But with so many platforms currently on the market, businesses must take some time to weigh their alternatives in order to select the best platform. Given the variety of functions and features that blockchain platforms might offer, this is extremely crucial.
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