How to choose a blockchain platform for your business

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Blockchain platform for your business

The growing popularity of the topic of crypto investment has caused an increased interest in blockchain technologies. Now blockchain is used as a common name, and the average citizen associates it with bitcoin, a cryptocurrency, the creation of which for the first time involved the technology of distributed registries. The capabilities and scope of decentralized registries are now much wider. Blockchain can be used independently of cryptocurrency and is easily modified. Everyone who knows the basics of programming is able to create their own blockchain.

When the need for a blockchain arises

The answer to this question reveals the essence of distributed registry technologies. Firstly, the automation of the actions taken. Secondly, the recorded data cannot be deleted or changed, and it is possible to trace the chain of transactions with anonymity. Thirdly, there are no intermediaries between the participants, the completion of data exchange takes place in a matter of seconds. Guaranteeing a transaction and storing information about it is the basic mechanism underlying the essence of a decentralized registry. Blockchain technology is applicable in the field of social insurance, education, medicine, copyright, logistics and product quality control, etc.

What is blockchain made of

Blockchain is a decentralized, supplemented database consisting of blocks sequentially connected in a chain. Each block contains information about the previous block. Information blocks are copied and stored on different computers without reference to one specific server, which makes it impossible to replace records.

Key features of blockchain technology:

  • Decentralization;
  • Transparency;
  • Lack of restrictions on the volume of stored data;
  • Reliability.

The disadvantages of most blockchain systems:

  • Transaction confirmation rate;
  • High energy consumption during mining. The current drawback – excessive energy consumption by miners – is a good basis for promising projects to develop methods and tools for creating, as well as introducing renewable energy sources that can fundamentally change approaches to the ‘extraction’ of cryptocurrency;
  • Key vulnerability: the inability to regain access to a lost electronic wallet, spoofing a project wallet address or illegally gaining access to private keys.

Each blockchain works using one of the consensus building algorithms: PoW, PoS, PoA, PoB, DPoS, LPoS, Pol, or one of their modifications. The protocol affects how the registry works and its scalability.

Now companies are carefully testing this technology as part of demonstration and pilot projects. So, in test mode, IBM, together with the transport company Maersk, recently launched an international logistics system with 90 large participating companies. If everything goes smoothly, the launch of the commercial version of the TradeLens platform is scheduled for the end of 2018.

The rapid development of digital technology leads to the need for rapid adaptation of business and technological processes. There is a professional interest in IT-development, which can resolve the issues. When choosing a blockchain platform, the first thing you should pay attention to is the functionality and its capabilities.

First, the potential and scalability. If business processes involve the use of information by the masses, the speed of online processing of network scripts with millions of users is crucial.

Secondly, the ability to develop smart contracts with custom settings. The algorithm for automatically fulfilling the prescribed conditions is extremely important for solving legal issues in any field of activity from trade to production.

Thirdly, the economic transfer of value and the exchange of tokens on crypto exchanges. Blockchain platform developers are actively engaged in the issue of creating open source code that will make it possible to exchange cryptocurrencies between blockchains. This once again confirms the fact that the blockchain technology potential has not been fully revealed.

Promising Blockchain Platforms

Part of the technical functional tools: algorithms for creating smart contracts, increasing transaction speed, adaptive scalability – to one degree or another, have their own solution in separate existing blockchain platforms. Next, we consider the most promising with a description of the scope of their application.

The Bitnation platform was created in 2014 based on the Ethereum blockchain technology. It provides administrative services specific to the state: identification card, notary public, credit history, insurance, etc. Virtual communities based on Bitnation already number more than 15 thousand people. The Estonian government is interested in the possibility of transferring the notarial system of the state to blockchain technology. Bitnation ideologists position the platform they created as a “state in a smartphone.’ Users of the state blockchain will be able to join the community, not becoming attached to the territory, but based on the ideas and goals of the group. Thus, a person independently chooses a control system, economic structure, rules of work, etc.

Ukraine is one of the world leaders in introducing distributed registry technology – in terms of government processes, blockchain technologies are tested on the voting system. The experiment takes place on the NEM blockchain with 28 nodes and the HEM cryptocurrency. The disadvantage of its use is the presence of a commission. The cost of voting at each polling station will be approximately 1,227 HEM, but experts say this is a reasonable fee for storing publicly important data for an unlimited time.

Borderless – the mobile version of the Bezant blockchain platform enables everyone to create a repository of electronic payments, receive transfers from anywhere in the world and in any currency. This is an actively developing project. Thanks to the unique Hyperledger tool on the platform, it is possible to create an open distributed accounting system (ledger), which allows you to support global business transactions. The Bezant blockchain can serve as a prototype of the banking blockchain. The mobile version of Borderless is capable of changing e-commerce.

Chronicled – An open registry for the Internet of things created on the Ethereum blockchain. The creators of brands and other intellectual property register and enter into the public blockchain registry unique codes of embedded chips (NFC and BLE), thereby protecting their products from fakes. Chronicled an important step in the development of the Iot ecosystem.

The Massachusetts Institute of Technology (MIT) Blockcerts project is officially approved and used to store documents at the University of Nicosia, part of the European Association of Universities. Among the courses offered by the university, there are open online courses in 83 countries, tuition fees are accepted in bitcoins, and diplomas are recognized worldwide. Using distributed ledger technologies makes it possible to fundamentally change the education system. Firstly, the prevalence of online courses; Secondly, by combining courses in blocks, it is possible to develop directions in highly specialized specialties; Thirdly, to develop standards that will allow the recognition of diplomas and certificates anywhere in the world.

Blockchain-based applications are also actively used in the management of food supply logistics. For example, Walmart and IBM are testing the Food Trust blockchain network. An online provider can track and control delivery times, temperature conditions, etc.

In the field of investment, the topic of using decentralized registry technologies is especially popular. Among the promising, showing the dynamics of stable development of technologies based on the blockchain, we can mention the Bitbon System, which runs on a modified version of the Ethereum blockchain with the immediate prospect of switching to a separate open-source Simcord blockchain. The functionality of the System is well suited for both investors and project proponents of varying complexity and degree of readiness for implementation. The main component of the System – Bitbon cryptocurrency – a digital financial instrument of the System, backed by assets, which indicates the security of invested funds. The Bitup Agency, as one of the participants in the Bitbon System, evaluates business ideas put up for financing or an existing business, but requiring additional funds for development. After evaluation and at all subsequent stages of the project’s life, the Bitup-Agency provides full support for its implementation. Since the processes of interaction within the System are much broader than the concept of ‘investment’, the developers proposed their own definition – Contributing. In addition, many processes in the System received new names, which is justified by the innovativeness of the Bitbon System itself.

The capabilities of digital platform technology (Bitbon Systems) are not limited to investment. It allows you to conduct business activities, evaluate property rights to Assets: real estate, machinery, production equipment, copyrights, know-how, shares in authorized funds, etc. and transfer their value digitally via Bitbon. Essentially, any of the areas of public life related to fixing relationships between several parties can be implemented in the Bitbon System.

When choosing a technology, it is necessary to evaluate its multifunctionality and adaptability to existing technologies. The main disadvantages of blockchain platforms, such as scalability, transaction speed and high energy costs, already have solutions to one degree or another. Using the blockchain in the near future will be the same mundane action as the global Internet network, which until recently was considered something fantastic.

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