Tips For Choosing The Right Blockchain Platform For Your Next Blockchain Development Project
Blockchain is disrupting every sector. Since it is decentralized, adaptable, and robust, blockchain development has also grown in popularity among businesses. Even so, it might cut down on their data or money transfer costs and involvement of third parties. 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 about which blockchain platform we have to choose. This article will help you choose a blockchain platform that will change your business. Here are a few features you should consider, to come to a conclusion about which blockchain platform you should choose!
- Centralized or Decentralized: A blockchain platform can either be centralized or decentralized. However it shouldn’t be confused with distributed ledger (meaning that many parties hold copies of the ledger), so a blockchain isn’t inherently decentralized. So, you have to decide what type of platform you require. The rights of members on the ledger are what determine whether a blockchain is centralized or decentralized.
- Decentralized Blockchain Network: Anyone can join in and conduct transactions on the ledger in a decentralized network. In order to protect against the flaws in this architecture and guarantee that transactions are accurate, measures must be in place. For instance, the decentralized blockchain used by Bitcoin relies on mining and proof-of-work to preserve the integrity of the ledger and guard against outside interference.
- Centralized Blockchain Network: Centralised networks are those whose identities are known. As a result, the system is legitimate since only reliable and trustworthy individuals are allowed to post to the ledger. Participants’ identities are known, thus because of this, all the transactions can be audited. You can opt for a centralized blockchain platform for financial services in order to reduce vulnerability.
- Consensus Mechanism: A consensus method is used by a Blockchain software platform to determine the validity of transactions made on its network. The two most popular consensus mechanisms are Proof-of-Work (PoW) and Proof-of-Stake (PoS). The best Blockchain platform for your needs will depend on what you need it to do.
- You require a consensus mechanism like PoW and PoS if you require a Blockchain platform with robust security features. For instance, if you’re searching for a software solution that enables businesses to manage digital assets and follow supply chains can use these robust mechanisms.
- A consensus method like Delegated Proof of Stake (DPoS) may be more appropriate if you’re searching for a software solution that enables businesses to interact with their partners more efficiently.
- Cost based on Niche and Blockchain App requirements: Cost-Driving Factors of Blockchain App Development comes from the need for a variety of resources, including open source tools, web development teams, analytics verticals, feature integration, and more. Here is a list of criteria with which the cost will vary – the scope of your blockchain application, security requirements, blockchain platform integrations, API integration, and numerous features at the beginning of the application project to acquire a precise quote. The cost for every blockchain application development depends solely on its core features, so it is wise to discuss with the blockchain development company you are partnering with to develop your custom blockchain app platform.
- Blockchain Development Tools: When selecting a Blockchain software platform, development tools and infrastructure tools are the two categories to take into account.
- Development Tools: Blockchain components such as API clients, client libraries, etc. are included in development tools. Developers utilize them to create new apps or migrate already-existing ones.
- Infrastructure tools: The foundational components of a Blockchain software platform are infrastructure tools. They establish the trust chain that permits trustless cooperation between several parties and is essential to the system’s operation.
- Maturity: Despite the fact that blockchain platforms have been around for a while, their level of maturity differs depending on the technology it supports. Ethereum, for instance, is more developed than Hyperledger Fabric. While some platforms are still in the conceptual phase, others are currently powering the enterprise solutions of well-established businesses across a variety of sectors and locations.
- Performance: The main non-functional requirements that are used to determine whether an implementation project is ready for production are the performance and scalability of IT systems. In a blockchain network, this is especially true due to its distributed and decentralized nature, which enables peers to interact and establish trust throughout a business network. To validate transactions, arrive at a consensus, and update the state of the shared ledger, each peer node must carry out calculations and interact with other peers. A blockchain network should be fast and efficient, the factors influencing the performance of the blockchain Consensus mechanism, Network Latency, Node Infrastructure, Smart contract complexity, Number of nodes, and other transaction-related things.
- Private Vs Public: There are different types of blockchains namely, Public, Private, Hybrid, and Consortium. However, the most commonly used types are private and public blockchains. The level of control that a private blockchain grants its user or node is the biggest difference between a private and public blockchain. A public blockchain enables anybody to take part in a transaction, while a private blockchain can only be managed by the business or person who created it. When security is critical and control is required, a private blockchain is ideal.
- Smart Contracts: Smart contracts on a blockchain are self-executing program codes. Developing Smart contracts for your business eliminates the need for third parties like a notary public or attorney, to sign and oversee the contract. Instead smart contracts are pre-written lines or specific rules of agreement between two or more parties. This allows for seamless contractual agreements without any third-party human involvement.
At a predicted CAGR of 56.3% over the projection period of 2022-2029, the worldwide blockchain market is expected to increase from $7.18 billion in 2022 to $163.83 billion by 2029. 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. Hope this article gave you a heads-up in that regard. But if you still have doubts or are at a loss about which platform you should even choose, how about reaching out to our team for help? Contact BSEtec, the best blockchain development company for more details and your blockchain-related consultations.