It’s no secret that blockchain has become incredibly popular in recent years. This isn’t a surprise, given how it can revolutionize everything from finance to supply chain management. However, not all blockchains are created equal. If your business is looking to incorporate blockchain into its business model, there are many factors that you need to consider before choosing a platform. In this article, we’ll cover four of the most important things you’ll want to know about each blockchain platform on the market today: speed, functionality, cost and platform security.
Speed
Speed is an important consideration for businesses embarking on blockchain projects. It can be achieved in a variety of ways, some of which are more complex than others. For example, Ethereum’s native smart contracts allow for transactions that occur off the blockchain but still use its verification process to ensure trust. This is useful when speed is not a top priority but doesn’t work for business.
Businesses need blockchain solutions that are fast and do not compromise on security. If your company has a strong technical team and plenty of resources at its disposal, it’s worth considering building out your custom solution. This, however, might be a time-consuming process. If your company wants to move fast & gain the first mover advantage, partner with blockapps to leverage STRATO Mercata. Our Blockchain-as-a-service offering and existing network of skilled technical talent will onboard your company to the blockchain smoothly.
Functionality
It’s important to consider the functionality of a blockchain before selecting one. This includes how it will be used and how that fits into your business model. For example, if you’re looking for a system that requires high levels of security, then you’ll want to consider building on private blockchains. However, if you’re interested in creating an open-source platform where users can collaborate with others and build their applications, then it’d be better to use public networks as they allow developers access to their codebase. If you are looking for a solution that combines the best features of public and private blockchains you should consider building on STRATO Mercata. It’s a blockchain built and owned by a large, diverse shareholder set of business participants optimized for real-world assets. It is Ethereum-compatible and provides data privacy so companies can determine what information is shared and with whom.
Costs
When choosing a blockchain, the transaction fee is bound to be one of your main concerns. The cost of using a certain blockchain depends on many factors, including:
- TPS (transactions per second) Score– The number of transactions it can process per second. Most blockchains have limited capacity and thus can process only a few transactions per second.
- How much it costs you to use that particular blockchain’s computing power for each transaction? This is usually expressed as GigaHash/second (GH/s).
- Whether there are third-party services with access to more computational power than what is available on the general network, which would enable them to earn more mining rewards than other miners who don’t have such access.
Platform Security
Blockchain security is a top priority & complex topic. There are two types of blockchains: public and private. Public blockchains are open to anyone who wants to join them, and private blockchains have limited access to only those who have permission to join.
Public and private blockchains are both quite secure. A public blockchain’s security is based on the number of nodes that support it. The more nodes, the more difficult it is for one individual or group to compromise the network’s integrity. Public blockchains also have a high degree of transparency in terms of how much money is being transacted at any given time, which makes them more difficult to compromise than private blockchains. Private blockchains, however, can be more secure than public ones because they’re specifically designed for use within an organization and therefore not subject to hacking from outside sources as easily as public chains are.
Private blockchains don’t use proof-of-work algorithms or open-source software like their public counterparts do. They use a consensus algorithm called Byzantine Fault Tolerance (BFT), which allows them to operate without an administrator or trusted third party involved in making decisions about how transactions should be handled or confirmed. This means that they’re not as susceptible to attack because they don’t depend on an outside party to verify their transactions; instead, every node will verify its transaction before submitting it to another node for confirmation. STRATO uses the Practical Byzantine Fault Tolerance Consensus Algorithm to achieve network consensus. PBFT requires a ⅔ majority of members to reach consensus. It also is ideal for synchronous networks or possible failures as it allows up to ⅓ of members to temporarily disconnect, be out of sync with each other, or even attest to bad blocks (the member is said to be “byzantine”). PBFT uses a multi-stage communication strategy to allow for strong network confidence.
Conclusion
In the end, it’s up to you to decide which blockchain platform is right for your business project. You should always consider these factors before making a decision. The best way to do this is by doing some research online and asking questions of other people who have worked with different platforms before making your own choice. If you have any further questions, drop us a line here and we will get back to you at the earliest.
