Blockchain is among the technologies taking over the financial industry, and many blockchain companies have emerged. Though relatively new, knowing which blockchain company is destined for success and which one isn’t makes you pick the right one for your business and investments. Blockchain offers different platforms for trading, making business, and other applications based on your desires and needs. Most companies use existing and well-established blockchains for their systems rather than developing a new framework. Picking the right platform is vital, and in this post, we discuss how to choose a blockchain platform.
How to Choose a Blockchain Platform
The primary considerations when choosing a blockchain platform are;
1. Scalability Needs
Scalability means that the blockchain platform has high transactions per second rate (TPS). An example is Ethereum can handle 20 transactions per second while Bitcoin only seven transactions. The transaction capability will direct you on what to use, mainly if you want to base your business on existing blockchain technology.
Most users will go for a platform with high TP; however, your application also determines the kind that is best for use. Some software like payment needs a TPS above seven, while those with less intensive transactions can operate with a low transaction per second. Blockchain scalability goes hand in hand with speed, decentralization, and security features.
2. Nature of the Blockchain Platform
Determine the kind of platform you need. Do you need a new one or an existing platform? Blockchains have low transaction costs, are efficient, time-saving, and much more. The type of platform you choose has advantages and disadvantages that will affect your application negatively or positively. A new blockchain platform is expensive to create and requires an expert, but the result is excellent.
Some companies still choose this route if what is already available doesn’t fit their purpose. Most organizations prefer existing blockchain platforms since less time is taken and minimal costs are incurred. Their level of support is high and is already well-established.
3. Private or Public(Open)
You can decide on a private or open network depending on your work. Private networks require permission to gain access by the user. Anyone wishing to participate in the public network can access it and carry out or verify transactions. Determine what you need with regards to your business, then choose accordingly.
4. Security
A safe and secure blockchain platform is essential, especially for storing private information. Organizations dealing with sensitive data need a platform that can’t be hacked or changed. Platforms with a history of peer-to-peer review are ideal and also a proven record of proper security. Such include Bitcoin, Ripple, Ethereum, and NEO.
5. Functionality
Blockchain platforms have varying functions. Ripple and Ethereum are both blockchain technologies, but the first provides currency transfer, while Ethereum is a smart contract that implements pacts between parties.
Final Words
Blockchain technology is the best solution for solving problems encountered in businesses or other applications. Choosing the right platform makes the experience better and more efficient. Consider the tips given above when picking a suitable blockchain platform.
