How do I choose the right blockchain?

Once you’ve decided to transform your business or project with blockchain, the next important step is to choose which platform to use.

This can be a daunting process because there are countless options out there and the technology is changing rapidly with every day that passes.

Organisations need strategy and expert advice before making this crucial decision.

In this blog, we’ll explain what you should consider before deciding which path to take.

What is blockchain?

As you may already be aware, a blockchain is a digital, decentralised ledger that handles the process of recording and tracking assets within a network of computer systems.

Blockchain structures its data into ‘blocks’ that are ‘chained’ together. 

In the same way that Apple’s OS runs many apps and programs, so too does blockchain.

Bitcoin was blockchain’s first use case, but since then many other platforms have emerged.

What is a blockchain platform?

Blockchain platforms are entities that can perform many digital functions, including (but not limited to) the initiation and execution of transactions and the creation of smart contracts.

Bitcoin was the first blockchain platform and handled transactions. Ethereum is thought to be the first platform to implement smart contracts.

These days, there are thousands of blockchains in existence and their use cases can vary greatly. For this reason, at rewired.one we take a ‘platform agnostic’ approach believing that it is crucial for our clients to find the right blockchain platform for their needs.

However, for example, some of the most recognised platforms include:

• • Ethereum
    Created by Russian-born programmer Vitalik Buterin, Ethereum is used for a variety of applications in finance, gaming, advertising, supply chain management and the creation and transfer of NFTs (non-fungible tokens). The platform uses smart contracts to allow participants to transact without a trusted central authority, with the translation records immutable, verifiable and securely distributed across the network. The native currency of Ethereum is Ether (ETH), which must be used to pay for the processing of on-chain transactions.

• • Solana
    Solana’s creators claim the platform is engineered for widespread, mainstream use by being energy efficient, lightning fast, and extremely inexpensive. The platform uses a ‘proof-of-stake’ consensus mechanism, which means there is no mining involved and only a small amount of energy is used. (Ethereum recently switched to proof-of-stake, having started with a proof-of-work mechanism similar to that used by Bitcoin).

• • Polkadot
    Polkadot is described as a platform that connects blockchains and allows value and data to be sent across previously incompatible networks (such as Bitcoin and Ethereum). It is also designed to be fast and scalable.  

• • Avalanche
    Like ethereum, Avalanche is a decentralised, proof-of-stake blockchain with smart contract functionality. Its creators claim it’s the fastest smart contracts platform in the blockchain industry, giving users the ability to quickly and cheaply build decentralised apps, scale quickly with minimal hardware and launch customised private and public blockchains.

• • Cardano
    Cardano is another blockchain that promises to rival Ethereum. The proof-of-stake platform use cases, including verifying credentials, improving supply chain management and preventing the online sale of fake luxury goods.

Choosing the right blockchain platform

As mentioned, there are many blockchain platforms available to you, and making the right choice is a key business decision that requires strategy and professional advice. When deciding which type of blockchain technology is right for your specific use case, you should give the following factors strong consideration:

• • Governance
    Who decides how the blockchain is governed and how? This could be crucial to the long-term sustainability and security of the platform.
    

• • Scalability
    How will the platform cope with a sudden spike in users?

• • Regulatory risk
    With the world’s governing bodies cracking down on cryptocurrencies, what risks could the platform face?

• • Security
    Could the platform be vulnerable to a security breach?

• • Support
    Does the platform have an appropriate level of support to achieve widespread adoption?

Rewired.one partners with large enterprises, startup businesses and government agencies to unlock the full power and value of blockchain technology.

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Need help to choose the right blockchain platform?

Blockchain is still a very new technology and deciding which platform to use can be a challenging and stressful process, especially if you’re going it alone.

With our expert mix of both consulting and engineering, rewired.one helps you make the right selection for your specific needs and can support both your strategy and execution.

To find out more, request to book a free discovery session below.