Anyone who has been involved with the development of new technology for business applications has most certainly come across blockchain at one point or another. This rapidly evolving technology has become a main fixture in modern technological development. Ten of the world’s largest companies are exploring blockchain-based solutions to a variety of problems. In 2018 the Initial Coin Offering (ICO) market came in at $6.3 billion, a 5% increase over 2018.
The fact that blockchain is being so widely used is a testament to its technological
value. It has been implemented in FinTech, AI, Cryptocurrency, the Internet of
Things (IoT), Insurance Claim software, Healthcare, and many other fields, and
for good reason.
1 What is blockchain?
Blockchain is
a decentralized virtual ledger that is incorruptible and distributed across
many machines. Anything that is recorded on the ledger will be verified by
numerous computers all connected to the particular network. No one individual
machine can change, rewrite, or delete items from the ledger. For this reason,
it is highly secure and offers a novel solution to many data systems issues
that have plagued business and technology applications for many years.
Blockchain has become a catch-all phrase for these types of technologies,
although it originally referred to the architecture originally developed for
the Bitcoin digital currency.
2 Choosing a blockchain platform
For most businesses,
developing a blockchain framework and network in-house is simply too costly and
time-consuming. While some large corporations may choose this route, many
decide upon using existing, well-established, blockchain technologies as the
basis of their system. Many options exist and picking the right one depends
largely on what type of application one desires and several other factors. The
following will consist of a basic outline of major considerations in regards to
choosing a blockchain platform.
Scalability needs
Blockchain
scalability refers to a blockchain platform that can achieve a high TPS
(transactions per second) rate. For example, Bitcoin can handle around 7
transactions per second, Ethereum (which businesses are most interested in
given its smart contract support), can handle 20, Stellar, a payment
technology, can handle up to 1,000 TPS.
Those
looking to build blockchain platforms off of existing technology must look at
the transaction capabilities and determine if their requirements will be met.
“For example, a business that is developing payment software based off of
Blockchain Technology will most certainly require a higher TPS than 7. Those
developing an application that is not transaction-intensive, perhaps an
in-house data management system may not need a high TPS rate.” writes Henry Swenson,
a tech blogger at PhD Kingdom and Britstudent. Scalability is one of the
largest issues in Blockchain technology and should not be taken lightly.
Adoption rate and functionality
While all
blockchain platforms are based on the same overarching philosophy they can vary
drastically in functionality. For example, Ethereum and Ripple are both
blockchain technologies but offer vastly different functions. Ethereum is a
smart contract-based platform meaning it is intended to enforce agreements
between two parties.
Security
This can be
an item of great importance for many people, especially if the company or
organization is dealing with sensitive information. In order to ensure that
there are no security breaches, it is important to choose a platform with a
history of peer review and a solid track record of maintaining security. Some
of the most popular platforms, such as Bitcoin, Ethereum, EOS, NEO, BUMO, and
Ripple, are all quality choices with an excellent security record.
Blockchain
technology has taken the business world by storm. Its ability to solve complex
problems in an efficient, cost-effective, and time-sensitive way is a big
reason behind its large-scale adoption and implementation. For those businesses
looking at Blockchain platforms to solve specific problems, it is very
important to consider the above-listed items when choosing which platform they
want to use.
We hope you have found this article
informative and interesting. For more information or queries contact us to know
more about this technology.
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