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Blockchain is one of the fastest developing technologies in the world today, with a lot of revolution and research just beginning. Since its introduction, Bitcoin has been the most popular cryptocurrency and the best example of how Blockchain technology is being used.
Blockchain is currently one of the most interesting technological innovations. It is a distributed, encrypted database model that could solve many problems related to trust and security on the Internet.
The blockchain market continues to grow at a breakneck pace. The number of blockchain platforms is increasing as interest in blockchain technology grows, and it might be difficult to find the ideal framework that meets all your business needs.
In this blog, we will explore the top five established and emerging blockchain platforms and provide all the guidance you need to choose the best blockchain platform.
1. Ethereum
Ethereum is a decentralized, open-source blockchain that allows users to create smart contracts. The platform’s native cryptocurrency is Ether (ETH). Ether is the second most valuable cryptocurrency after Bitcoin in terms of market capitalization. Ethereum includes its own programming language, Solidity, and its own cryptocurrency, Ether, which is used to execute transactions and programs on the Ethereum network. The market value of one ETH at the end of May 2021 was $2,236, according to the Ethereum price, making Ether the second most valuable cryptocurrency on the market after Bitcoin.
It creates a peer-to-peer network for secure execution and verification of smart contract code. Participants can transact with each other without relying on a trusted central authority.
Strengths:
- Not expensive: ETH still has a lot going for it, even with the whale problem. The coin’s affordable price tops the list of benefits. Consider the following: If you own one or more BTC units and the price drops by 20%, you face financial disaster. This risk is not an issue with ETH and most other cryptocurrencies with lower price. Therefore, it has a reasonable value per coin
- High level of security and decentralization: high security due to decentralization, low downtime, adaptability and a large community.
- High scope for growth: in 2021, for example, the platform partnered with Polygon, a company that aims to build Ethereum-compatible blockchain networks. In addition, Ethereum is currently being redesigned under the name Ethereum 2.0, which is based on the Proof of Stake (PoS) principle to improve security and scalability and make Ethereum more accessible.
Weaknesses:
- Errors in troubleshooting and high transaction costs: Compared to other platforms, there are long processing times and higher transaction prices, as well as scaling issues. However, it is worth noting that the Ethereum team is now fixing bugs.
- Not very well known: Since blockchain technology is relatively new, many are not aware of Ethereum and its related services.
- Distribution of ownership: in no other non-traditional currency is the problem of ownership distribution as big as in Ethereum. If the coin has one major drawback, it is the fact that fewer than 400 people own more than one-third of all units in circulation.
Use cases:
The launch of DeFi in 2020 and NFT in 2021, both of which are closely tied to Ethereum, has increased demand for the network. There are an overwhelming number of Ethereum-based projects that are accessible. Apart from banking, the platform is also used for developing voting systems, secure storage of medical data, gaming, and social networking. The number of useful Ethereum use cases is growing, and thanks to continuous development, Ethereum will be one of the most promising blockchain platforms in the coming year.
2. Hyperledger Fabric
Hyperledger Fabric is a distributed ledger architecture for building enterprise-level systems and applications. Its modular and adaptable architecture is suitable for a wide range of industry applications. It uses a novel consensus methodology that enables scalability while maintaining anonymity.
This is thanks to its modular architecture. The platform is designed for use by industrial companies and is permissioned, meaning that only authorized users can access the data. Hyperledger Fabric also features “chain codes,” or smart contracts.
Strengths:
As we know, the ledger is a sequence of records of different transactions. The different file systems are suitable for different blockchain applications. A new file system would be suitable for peer nodes that are immutable. It provides some level of scalability, performance, and trust.
Hyperledger Fabric combines the benefits of blockchain technology with enhanced data security and privacy. It has a high level of performance and scalability, as well as the ability to set up a clear identity management system to control who joins the network. This is an example of a blockchain that can be used by companies that are not interested in cryptocurrency projects.
The platform is constantly being improved. For example, in January 2020, Hyperledger Fabric 2.0 was released. The update ensures decentralized management of smart contracts and improves data protection at the same time.
Vulnerabilities:
Hyperledger Fabric, on the other hand, is not ideal for people seeking transparency. There are few use cases for this platform as the market is mainly focused on public blockchains.
Use cases:
Hyperledger Fabric allows for private transactions and confidential contracts, making it ideal for financial companies that respect privacy and security. Other companies, such as those in healthcare, government, and supply chains, can use the platform to create their own private blockchain network. This technology has already been used by HP, Amazon, Visa, Walmart and a number of other companies.
Despite significant competition in the industry, Hyperledger Fabric is one of the most popular blockchain solutions for businesses. According to IDC, blockchain investments by enterprises in Europe increased by 60% last year, and the demand for this blockchain development platform is expected to continue.
3. Polkadot
Polkadot is a cryptocurrency and open-source blockchain technology that enables distributed computing. The network uses a proof-of-stake consensus algorithm. The system used, Blind Assignment for Blockchain Extension, is based on Ouroboros. The protocol was adapted by Ethereum co-founder Gavin Wood and is being developed by the Web3 Foundation, with Parity Technologies providing the initial implementation.
Polkadot’s unique architecture, which enables paracaches, allows permission data from a private blockchain to be used on a public blockchain. As Polkadot addresses blockchain scalability and interoperability issues, it has a good chance of becoming one of the leading blockchain platforms in the coming years.
Strengths:
Polkadot offers a number of benefits to both developers and users of blockchain technology. First, the network provides fast and secure data processing and transfer across public and private blockchains.
The platform is highly adaptable and practical. Second, it opens up new opportunities for developers of decentralised applications. For example, Polkadot provides a unified platform for protocol development that allows individual blockchains to rely on common security features. Many blockchain experts consider Polkadot a breakthrough technology that makes the concept of a unified blockchain network more realistic than ever before.
Vulnerabilities:
Since Polkadot is a new project, there aren’t yet many use cases to fully grasp the benefits of the technology. It’s been faulted for its lack of decentralisation, which has been attributed to its reliance on its own currency, DOT.
Use cases: Polkadot is a crypto company focused exclusively on projects such as DeFi and NFTs. In 2020, it partnered with Chainlink to attract DeFi app developers. The platform can be used to create transaction chains, IoT chains, oracle chains, identification chains, data distribution chains, and other types of chains. The popularity of the platform is growing, and we hope to see more interesting activities coming up in the Polkadot ecosystem.
4. Solana
Solana differs from other platforms in several ways. This first-level blockchain has no sidechains or parachains. The platform is open-source and decentralized. It even has its own cryptocurrency, called SOL. The Solana blockchain pays nodes to process SOL transactions, and unlike many other blockchains, there is no minimum amount required to start a node. Proof of History is a new crypto approach used by Solana (PoH). It allows for better scalability and faster transaction processing. According to Solana Foundation members, Solana’s current throughput is 60,000 transactions per second.
Strengths and weaknesses:
The platform features excellent scalability and project compatibility. It also offers a pleasant user experience, which many decentralized ventures lack.
Since Solana is a new blockchain platform, it’s not seen much adoption yet, and many projects are still in the works. Many features are in test mode, which means the system could crash. In addition, some engineers worry that the blockchain isn’t decentralized enough. Nevertheless, Solana is promising and has many advantages over other cryptocurrencies like Ethereum.
Uses:
Although Solana has been on the market for some time, the increasing interest in NFTs led to a significant boom in 2021. Since mining non-fungible tokens on Solana is cheaper and faster than on Ethereum, many users and projects interested in non-fungible tokens have opted to continue development. There are many DeFi projects based on Solana, such as wallets, DEXs, and stablecoins. According to various sources, the Solana ecosystem currently includes about 200 companies.
In addition, the network continues to evolve. The Solana Foundation was established in 2020 to support the development of the environment. In return, Solana Labs donated 167 million SOL coins to the foundation. In addition, in October 2020, Solana developers set up a cross-chain bridge with Ethereum, which enables the transfer of assets between the two blockchains.
5. Cardano
Charles Hoskinson, a co-founder of Ethereum, began developing the platform in 2015 and unveiled it in 2017. Hoskinson left Ethereum after a disagreement with Vitalik Buterin, one of its co-founders; Hoskinson wanted to accept venture funding and turn the platform into a for-profit company, while Buterin preferred to keep it a nonprofit. After leaving, he co-founded IOHK, a blockchain engineering firm whose core business is the development of Cardano, in collaboration with the Cardano Foundation and Emurgo.
Cardano is an open source proof-of-stake blockchain platform. It has its own coin, ADA, and a multi-tier architecture. Cardano is based on the proof-of-stake principle, which values the amount of bitcoins in circulation. The platform offers the possibility of smart contracts. The decentralised nature of Cardano is its most enticing feature. In 2021, the platform was fully decentralised, and the network now has over 1500 validator pools.
Strengths and weaknesses:
Cardano is a cryptocurrency that is both powerful and scalable. Its transactions are faster and cheaper than those on the Ethereum network. Another feature that consumers like is the ability to earn passive income by wagering ADA coins. Security is a top priority for the platform. Ouroboros, a Cardano protocol, provides mathematical proof of the system’s durability, even if nodes are offline for a short period of time, such as due to a computer malfunction or power outage. The system is very stable due to its high level of decentralisation. Cardano is known as an “academic blockchain” because it was developed after extensive research and testing. On the one hand, this increases trust in the network, but it also slows down the development of the platform. This is also where much of the criticism comes from.
Uses:
Cardano’s main focus is on smart contracts, decentralised apps, and sidechains. NFTs are also supported by the network, which puts it at the forefront of 2021 blockchains. DEXs, NFT marketplaces, stablecoins, credit protocols and other applications are now being developed with Cardano. The CardanoThe team has a clear plan for improving the technologies it uses. The platform is expected to undergo a series of upgrades in the near future that will make it an even more desirable alternative for blockchain startups.
How do you choose a blockchain development service for your business?
Now that we’ve gone through the list of the best blockchain platforms for 2023, let’s turn to how to find the right technology solution for your business. When choosing a blockchain for your project, pay attention to the elements that are critical to you and that meet your business needs.
These elements may include:
Level of confidentiality – If you want to develop an enterprise blockchain but have strict security and privacy requirements, look at private platforms like Hyperledger Fabric. Choose one of the public networks if your company wants to develop an open initiative with a high level of transparency.
Security – Security is always an issue. Different blockchains use different strategies to ensure that data is stored and transferred securely.
Decentralization – The benefits of decentralized solutions are being discovered by more and more customers and businesses. Determine the level of decentralization required for your project and the platform that can provide it.
Speed and cost of transactions – Many consumers consider these features when deciding which blockchain applications to use. If you choose a platform that has a high gas tax, your development team will need to consider how to make it more efficient.
Scalability – It all depends on your business goals and the anticipated demand for the system. Make sure the platform you choose can handle increasing workloads while maintaining high performance.
Adoption rate – Finally, when selecting blockchain development solutions, consider. The more popular a platform is, the more users it is likely to attract with less effort. If this is your goal, you should study the popularity and success of different platforms on the market.
Conclusion
The blockchain market is growing at a rapid pace. New and more advanced solutions are being developed and existing ones updated on a regular basis. When choosing a blockchain app development company for your business, you should consider both the functionality of the blockchain and its track record in the market, as proven solutions offer higher chances of success.
To effectively launch a crypto project, you need to not only select the right framework, but also find a development team capable of realizing the full potential of the technology.
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