Blockchain is one of the most rapidly evolving technologies in today’s world, with a lot of revolution and research just getting started. Since its inception, Bitcoin has been the most popular cryptographic currency, and it is the best example of how Blockchain technology is used.
Blockchain is currently one of the most interesting technological advancements. It’s a distributed, encrypted database model that could solve a lot of issues with online trust and security.
The blockchain market is still growing at a breakneck pace. The number of blockchain development platforms is increasing in tandem with the growing interest in blockchain technology, and it might be tough to find the ideal framework to satisfy all of your business demands.
In this blog, we will examine the top five well-established and emerging blockchain platforms and provide all the necessary pointers for choosing the best blockchain platform.
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, as well as its own cryptocurrency, Ether, which is used to execute transactions and run programs on the Ethereum network. The market value of one ETH was $2,236 at the end of May 2021, according to the Ethereum Price, making Ether the second most valuable cryptocurrency on the market behind Bitcoin.
It creates a peer-to-peer network for securely executing and verifying smart contract code. Participants can transact with one another without relying on a trusted central authority.
- Not expensive: ETH still has a lot going for it, even with the whale issue. The coin’s affordable price is first on the list of advantages. Consider this: if you hold one or more BTC units and the price drops by 20%, you’re in for a financial disaster. This amount of risk is not an issue for ETH and most other lower-priced cryptos. Therefore, it has a reasonable per coin value
- High level of security and decentralization: Its high level of security owing to decentralization, low downtime, adaptability, and large community.
- High scope to growth: In 2021, for example, the platform teamed up with Polygon, a company that wants to build Ethereum-compatible blockchain networks. In addition, Ethereum is undergoing a redesign known as Ethereum 2.0, which will work on the Proof of Stake (PoS) principle to improve security and scalability while also making Ethereum more accessible.
- Troubleshooting errors and high transaction costs: As compared to other platforms, there are lengthy processing times and greater transaction prices, as well as scaling concerns. It’s worth mentioning, however, that the Ethereum team is now troubleshooting.
- Not very well known: Since Blockchain technology is relatively new, many are not aware of Ethereum and the services it provides.
- Ownership distribution: No other form of non-traditional currency faces the ownership distribution problem that Ethereum does. In fact, if the coin has one major downside, it’s the fact that fewer than 400 individuals own more than a third of all circulating units.
The introduction of DeFi in 2020 and NFT in 2021, both strongly linked to Ethereum, has raised demand for the network. There are a staggering number of Ethereum-based projects accessible. Apart from banking, the platform is also used to create voting systems, secure medical data storage, games, and social networks. The number of useful Ethereum use cases is expanding, and thanks to ongoing development, Ethereum will be one of the most promising blockchain development platforms in the future year.
2. Hyperledger Fabric
Hyperledger Fabric is a distributed ledger architecture for building enterprise-grade systems and apps. Its modular and adaptable architecture caters to a wide range of industry applications. It takes a novel method to the consensus that allows for scalability while maintaining anonymity.
The modular architecture is to thank for this. The platform was designed for usage by industrial enterprises and is permissioned, meaning that only authorized users have access to data. Hyperledger Fabric also has ‘chain codes,’ which are smart contracts.
As we know, the ledger is a sequence of records of various transactions. The various file system is suitable for various blockchain application. A new file system would be suitable for peer nodes that are immutable. It provides a 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 firms that aren’t interested in cryptocurrency projects can utilize.
The platform is always improving. In January 2020, for example, Hyperledger Fabric 2.0 was released. The update ensures decentralized smart contract management while also improving data privacy.
Hyperledger Fabric, on the other hand, is not ideal for people seeking transparency. There are minimal use cases for this platform because the market is mostly focused on public blockchains.
Private transactions and confidential contracts are possible with Hyperledger Fabric, making it ideal for financial organizations that respect privacy and security. Other businesses, 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 implemented 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 enterprise blockchain solutions. According to IDC, enterprise blockchain investment in Europe has surged by 60% in the last year, and demand for this blockchain development platform is expected to continue.
Polkadot is a cryptocurrency and open source blockchain technology that enables distributed computing. A proof-of-stake consensus algorithm is used by the network. Blind Assignment for Blockchain Extension, the system employed, 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 para chains, allows you to use permission data from a private blockchain on a public blockchain. Because it addresses the concerns of blockchain scalability and interoperability, it has a high chance of becoming one of the leading blockchain development platforms in the coming years.
Polkadot provides a number of benefits to both developers and users of blockchain technology. First, the network provides fast and secure data processing and transmission across public and private blockchains.
The platform is extremely adaptable and practical. Second, it opens up new possibilities for decentralized app creators. Polkadot, for example, provides a unified platform for developing protocols, allowing individual blockchains to rely on shared security properties. Many blockchain experts consider Polkadot to be a game-changing technology that makes the concept of a unified blockchain network more realistic than ever before.
Weaknesses: Polkadot is a new project, hence there aren’t many use cases to fully comprehend the technology’s utility. It has been chastised for its lack of decentralisation, which has been blamed on its reliance on its own DOT currency.
Uses: Polkadot is a crypto firm that focuses solely on projects like DeFi and NFTs. In 2020, it partnered with the Chainlink effort to attract DeFi app developers. The platform may be used to build transaction chains, IoT chains, oracle chains, identification chains, data distribution chains, and other types of chains. The platform’s popularity is growing, and we’re hopeful that further intriguing Polkadot ecosystem activities are on the way.
Solana is distinct 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 for processing SOL transactions, and unlike many other blockchains, there is no minimum amount of money required to start a node. Proof of History is a new cryptic approach used by Solana (PoH). It allows for more scalability and faster transaction processing. According to members of the Solana Foundation, Solana’s current throughput is 60,000 transactions per second.
Strengths and weaknesses: In addition, the platform has excellent scalability and project compatibility. It also offers a pleasant user experience, something many decentralized ventures lack.
Because Solana is a new blockchain platform, it hasn’t seen much acceptance yet, and many projects are still in the works. Many features are in test mode, which means there’s a potential that the system will crash. In addition, some engineers worry that the blockchain isn’t decentralized enough. Regardless, Solana has a lot of promise and many advantages over other cryptocurrencies such as Ethereum.
Although Solana has been on the market for some time, rising interest in NFTs resulted in a significant boom in 2021. Because mining non-fungible tokens on Solana is cheaper and faster than on Ethereum, many users and projects interested in non-fungible tokens have chosen it for further development. There are many of DeFi projects based on Solana, such as wallets, DEXs, and stablecoins. According to various sources, Solana’s ecosystem currently includes approximately 200 enterprises.
In addition, the network is still evolving. The Solana Foundation was established in 2020 to aid in the development of the environment. Solana Labs donated 167 million SOL coins to the foundation in exchange for this. In addition, Solana developers established a cross-chain bridge with Ethereum in October 2020, allowing for asset transfers between the two blockchains.
Charles Hoskinson, a co-founder of Ethereum, began developing the platform in 2015 and unveiled it in 2017. Hoskinson departed Ethereum after a disagreement with Vitalik Buterin, one of its co-founders; Hoskinson wanted to accept venture financing and turn it into a for-profit company, while Buterin preferred to preserve it as a charity. Following his departure, 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-layered architecture. The Proof-of-Stake principle, which evaluates the amount of bitcoin in circulation, underpins Cardano. On the platform, smart contract capability is provided. Cardano’s decentralised nature is its most enticing feature. In 2021, the platform became completely decentralised, and the network today 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 possibility to earn passive income by staking ADA coins. Security is a top priority for the platform. Ouroboros, a Cardano protocol, offers mathematical proof of the system’s permanence, even if nodes are briefly offline due to, for example, a computer malfunction or power outage. The system is very stable due to its high decentralisation. Cardano is known as an “academic blockchain” because it was developed following extensive research and testing. On the one hand, this improves network trust, but it also slows down the platform’s development. As a result, much of the criticism derives from this.
Cardano’s main focus is on smart contracts, decentralised apps, and sidechains. NFTs are also supported by the network, bringing it to the top of the 2021 blockchains. DEXs, NFT marketplaces, stablecoins, lending protocols, and more applications are now being built with Cardano. The Cardano team has a clear plan in place for improving the technologies they use. In the near future, the platform is expected to undergo a number of upgrades that will make it an even more desirable alternative for the formation of blockchain businesses.
How do you pick a blockchain development service for your business?
Let’s move on to the subject of how to find the proper technological solution for your organization now that we’ve gone over the list of the best blockchain development platforms for 2022. When selecting a blockchain for your project, consider the elements that are crucial to you and that match your business requirements.
These elements may include:
Level of confidentiality- If you want to develop an enterprise blockchain but have tight security and privacy needs, you should look into private platforms like Hyperledger Fabric. Choose from the public networks if your company’s purpose is to develop an open initiative with a high level of transparency.
Security– Security is always a concern. Different blockchains use different strategies to ensure that data is securely stored and transmitted.
Decentralization- The advantages of decentralized solutions are being discovered by an increasing number of customers and businesses. Determine the level of decentralization required for your project and the platform that can offer it.
The speed and cost of transactions– Many consumers consider these characteristics when deciding which blockchain applications to utilize. If you choose to work with a platform that has a high gas tax, your development team will have to consider how to make it more efficient.
Scalability- It all depends on your business objectives and the system’s predicted demand. Make sure the platform you choose can handle increasing workloads while maintaining high performance.
The rate of adoption– Finally, while selecting blockchain development solutions. The more popular a platform is, the more users it is likely to attract with less effort. If this is your goal, research the popularity and success of several platforms on the market.
The blockchain market is growing at a breakneck speed. New and more advanced solutions develop on a regular basis, in addition to updating current ones. When selecting a blockchain development service for your company, you should consider both the blockchain’s functionality and its track record on the market, because proven solutions offer higher chances for success.
In addition, to effectively begin a crypto project, you must not only select the appropriate framework but also identify a development team capable of realizing the technology’s full potential.