Imagine this is the year 2010, right after Bitcoin’s initiation, and you are asked what the most trending topic in the world is? You might not say that it is blockchain technology. Fast forward to twelve years later and today, ask what is a blockchain platform; one out of every four to five adults will be able to answer that. The massive growth of blockchains in the financial world has led it to reach very high potential. These platforms enable the usage of a distributed ledger to store information related to various transactions. A blockchain platform can also store data sets in the blocks after verification from multiple sources. But, if you are still wondering how blockchain platforms have grown, then keep reading to find out!
What is a Blockchain Platform?
Initially, blockchain was introduced to promote decentralization in the financial world and provide freedom in terms of transactions. Today, non-transactional uses of blockchain have also started to surface. But what is a blockchain platform exactly? Well, it is a digital platform with scripting abilities capable of creating and managing web3 applications and platforms. These platforms create a distributed ledger which generally stores data sets with due verification of the information. Apart from transactional purposes, different types of blockchain platforms are used to create and manage smart contracts and NFTs.
Key Factors To Consider Before Choosing A Blockchain Platform For Your Business
- Cost of Development
- Robust Smart Contracts
- Transaction Speed
The network of nodes and other constituents used in a blockchain platform provides technical support to all the actions performed using the blockchain platform. So, ensuring that the network used is secure and highly responsive is important.
If you plan to choose a blockchain platform for your business, you should choose a popular one. Credibility matters a lot in the blockchain community. Different types of blockchain platforms offer different perks, but they are useful only when they are largely accepted.
The data storage capability of a blockchain platform is a major factor in choosing one. Suppose a blockchain platform contains blocks that can store more data through due validation. In that case, it can provide a more robust form of decentralized transactions.
Blockchain platforms are also created using computer languages only. As you and your team know, selecting a blockchain platform with a familiar language is essential for the business.
5. Cost of Development
Choosing a blockchain platform for your business also depends upon its development cost. It includes the complexity, type of blockchain used, personalization, etc., which must be considered. You should select a blockchain platform only after due calculation.
6. Robust Smart Contracts
The primary motive for implementing a blockchain platform is ensuring all transactions and data transfers go smoothly. Robust smart contracts ensure that this process is automated and completely secure.
7. Transaction Speed
With the increasing competition in the market, a new business must implement automation and speed into its transactions and service delivery. This is why choose a blockchain platform that validates and adds transaction information to the blocks at a higher speed. It will help in making sure that the business gets to be updated with all the information faster. Also, faster transaction speeds mean faster delivery of services to customers.
Lastly, choosing a highly secure blockchain platform from the whole list of blockchain platforms is better. Multiple platforms have open-source code, meaning any participant from the internet can take a transaction, validate it and add a block to the chain. Private blockchain platforms already have a secure network of nodes that do this job.
A List of Blockchain Platforms to Watch out for in 2023
To make it easier for you to choose the best blockchain platform for yourself, here we have compiled a list of blockchain platforms that are most popular right now:
- R3 Corda
- Hyperledger Fabric
- Hyperledger Sawtooth
Like a traditional payment processor (PayPal, for example), Tron aims to provide efficient and faster transaction processing to decentralized finance. It currently processes nearly two thousand transactions per second and provides base protocols for developers to create DApps. It has benefits like high scalability, availability, better performance, EVM support, multilingual extension, counterfeit chain removal, etc., making Tron a great blockchain platform for businesses.
Created by JP Morgan, Quorum has been able to solve the problems related to Ethereum and other blockchains. It has introduced private and public transactions on the chain itself. Quorum functions using Ethereum core, so all the updates can be applied quickly. It is open source and has voice-based algorithms that can be used to process hundreds of transactions at a time.
When it comes to a list of blockchain platforms counted as the best, Ethereum is of course to be included. Introduced in 2013, the Ethereum blockchain is one of the most trusted kinds of different types of blockchain platforms. It enables smart contracts and the creation of DApps through its base protocols. It is a corporate-centric blockchain platform that facilitates faster transactions. The only catch is that it is open source and has restricted access versus mass consumption.
4. R3 Corda
R3 is one of the most influential financial institutions in the world. In 2015, they entered the decentralized finance world with Corda, their own blockchain platform. Currently, it is considered to be the best blockchain platform by a lot of experts. It provides authorized access to data to preferred nodes only. It allows users to settle smart contracts directly without any transactional friction.
Officially registered in 2016 after its initial coin offering, Qtum is a cryptocurrency that successfully combines the functionalities of both ETH and BTC. It uses the base protocols of ETH to promote the creation of DApps but also has the UTXO security model of BTC. The unspent transaction exit model is an accounting system used by BTC to provide higher security to the blockchain platform.
It is a blockchain platform that allows cross-asset transfer. This means that it allows exchange between crypto assets and fiat currencies. It uses a consensus protocol (Stellar consensus protocol) that allows the addition of a block without relying on a closed system to record the transactions.
Multichain offers open-source platforms for private blockchains among different types of blockchain platforms. It offers fast provisioning, authorization management, native assets, etc. It also offers compatibility with the BTC ecosystem.
Launched in June 2018, EOS aims to promote decentralization in every technical aspect. The developers of this blockchain platform have already distributed 1 billion ERC-20 tokens to ensure that this platform reaches the masses. The motive of this platform is to offer decentralized app hosting, storage of business solutions, and intelligent contract capacity.
9. Hyperledger Fabric
Hyperledger Fabric aims to provide authoritative networks and participation of only the known identities in the blockchain network. The designers get to choose the consensus services and how a member is to be added to the platform.
10. Hyperledger Sawtooth
Developed by the Linux Foundation, Hyperledger Sawtooth is a blockchain platform that allows digital records on the ledger without a central controlling figure. It uses the ‘Trusted Execution Environments’ consensus mechanism to integrate security into the network.
The transactions here are completely free because there is no need for mining blocks to add transactional information. It is an open-source blockchain platform for companies to securely scale and store their digital assets.
Popular Use Cases for the Best Blockchain Platforms
Blockchain technology is still relatively new to many businesses, of course. Even though it has spilled over the crypto space for a long time now and has spread across industries ranging from education and healthcare to property records and ride-sharing applications, it’s still considered to be a nascent technology. However, there are two specific areas where it is gaining significant interest- enough to be called mainstream. These two would be supply chain management and industrial Internet of Things (IIoT).
1. Blockchain Platforms for the Supply Chain Industry
In the supply chain industry, Blockchain platforms offer a way to provide transparency and build trust between trading partners. By capturing and recording critical data points, all parties involved in the supply chain can have a clear view of all transactions. This complete visibility and traceability of goods, as they move through increasingly complex global supply chains, can help reduce fraud and improve efficiency. Moreover, blockchain can help organizations engage consumers with real, verifiable, and immutable data about the products they purchase, fostering greater trust and loyalty.
2. Blockchain Platforms for Industrial Internet of Things (IIoT)
On the other hand, the IIoT space is experiencing explosive growth, and the security of the existing equipment is becoming more of a concern. Blockchain technology is being explored as a means of guaranteeing the security of IIoT devices. Blockchain’s distributed ledger technology can provide a secure and transparent way of managing IIoT devices and their data, which can help manufacturers improve their operations and reduce their risks.
In summary, Blockchain platforms for supply chain management and IIoT offer promising solutions for businesses that seek greater transparency, efficiency, and security. By leveraging these technologies, organizations can build trust, improve customer satisfaction, and better protect their data and assets.
How to Pick the Best Blockchain Platform?
There is no sure-shot way to choose the best blockchain platform for your business. Amongst all the different types of blockchain platforms, it is best to consult a trusted agency or experts before making a move. Also, it will help the business greatly if the whole management and the leaders learn about the list of blockchain platforms available today and how they benefit the business. Moreover, all the benefits must be cross-checked with the requirements of your business, and only after thorough research should you select a blockchain platform to work with.
We do hope this post answered the question ‘what is a blockchain platform?’ satisfactorily for you. Now that you understand a blockchain platform and how to choose the best blockchain platform for your business, you’d understand why many say that the upcoming future is all about decentralization. Every person and every business wants to control their own data and financial freedom. That is what blockchain platforms are aiming to provide. In the future, these platforms are very likely to be adopted in general, everyday usage, and serve as institutions for financial information transfer, as well as other sorts of data.
Frequently Asked Questions (FAQs)
1. How does a Blockchain Platform Work?
A blockchain platform is a decentralized system that allows multiple parties to share and store data in a secure and transparent manner. It uses cryptography to ensure the integrity and authenticity of the data, and a distributed ledger to record and validate transactions. Each block added to the chain is linked to the previous block, creating an immutable and tamper-proof record of all transactions.
2. What is Blockchain Used for?
Blockchain technology is used for a variety of purposes, including financial transactions, supply chain management, identity verification, voting systems, and more. Its primary benefits are its security, transparency, and immutability, which make it ideal for applications where trust and data integrity are critical.
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Last Updated on October 23, 2023