Which Blockchain framework will fit your business needs?

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With the rapid advancement of technology, there are now numerous blockchain framework available for use. It is natural to wonder about the differences between these platforms and the specific capabilities of each. Some of the most well-known and prominent blockchains include Bitcoin, Ethereum, Ripple, Hyperledger, LISK, and Stellar.

These blockchain frameworks have gained significant attention as they continue to improve and secure their chains and have developed a range of capabilities to meet the diverse needs of users. It can be challenging to choose the right blockchain platform for a specific project but understanding the unique features and capabilities of each can help make the decision-making process easier.

Which-Blockchain-framework-will-fit-your-business-needs

Bitcoin

Bitcoin is a widely recognized blockchain platform that is primarily used for its cryptocurrency, known as bitcoin or BTC. It was the first practical application of blockchain technology and has gained significant media attention. Transactions on the Bitcoin network are recorded on a distributed ledger, and the network relies on a complex mining process to validate these transactions and add them to the blockchain. This process involves using specialized computers to solve complex mathematical problems, which requires a significant amount of computational power.

Pros Cons Use Cases
  • Sophisticated encryption mechanism
  • Proof-of-work algorithm as means of consensus
  • Digital signatures to verify transactions with public/private key encryption
  • Block size limited to 1 MB
  • Scalability issues
  • Transactions not instant
  • High-energy mining process
  • Bitcoin is the first case of a virtual wallet complete with a fully blockchain-associated currency, bitcoin
  • Sending/receiving money anonymously and with no need for trust

Ethereum

Ethereum is a popular blockchain platform that is often compared to Bitcoin. Like Bitcoin, Ethereum has its own cryptocurrency called Ether (ETH). In addition to being a platform for digital currency transactions, Ethereum also supports the development of decentralized applications (dApps). The Ethereum wallet also has support for ERC-20 tokens, which are a form of digital asset that are associated with specific applications or projects on the Ethereum blockchain.

Pros Cons Use Cases
  • Popular platform for ICO; ERC-20 tokens
  • Smart contracts are very touchy and cannot be easily edited or amended once they are in circulation
  • Legal issues concerning business between two parties are not fully dealt with by smart contracts and can require a third-party legal consultant to develop ground rules
  • Smart contracts for business
  • Legal contracts through the smart contract mechanism
  • Financial services

Ripple

Ripple is a blockchain platform that was designed to enable fast and low-cost transactions between large organizations. It has its own native cryptocurrency called XRP, which is used to facilitate these transactions. Ripple is known for its ability to handle high volumes of transactions and its focus on catering to the needs of large enterprises.

Pros Cons Use Cases
  • Very high-speed transaction processing system (capable of 50,000 completed transactions per second)
  • Very little transaction fees
  • Integrated protection rules and protocols to detect illegal transactions and even suspicious activity reporting
  • Blockchain is mostly controlled by Ripple Labs, not the most distributed or democratic platform
  • Prerequisites (requirements) for users to utilize Hyperledger capabilities (bad for small business users)
  • Escrow contracts, which are contracts kept in the hands of a third party until a condition is met or a date is reached
  • Tipping services through different online platforms

Hyperledger

Hyperledger is an open source blockchain platform that offers smart contract functionality similar to Ethereum. It is geared towards large-scale businesses and their associated transactions. Unlike many other blockchain platforms, Hyperledger does not have its own native cryptocurrency. Instead, it is focused on providing a secure and scalable platform for enterprise use cases.

Pros Cons Use Cases
  • No mining
  • Friendly to big businesses
  • Allows creation of permissioned blockchains to ensure data security and private transactions
  • Cryptographic access key technology for permissioned blockchains
  • Difficult to build on because of control of large companies and little room for the success of smaller business
  • IBM-like companies dominate the market
  • Financial world, big, bundled transactions between large companies
  • Healthcare, faster distribution of patient data
  • Supply-chain management, shipments and products can be tracked from their cultivation/production to sale

Lisk

Lisk is a blockchain platform that is designed to support the development of decentralized applications (dApps) using JavaScript. It promotes the creation of dApps and even maintains a directory of available dApps for users to browse and discover. Lisk has its own cryptocurrency called LSK, which is used to facilitate transactions on the platform. Lisk is known for its focus on developer accessibility and its use of JavaScript, which is a widely used programming language.

Pros Cons Use Cases
  • dAPP development is big plus, all in JavaScript which removes the ambiguity of programming language choice
  • Very little overhead regulation on dAPP development and no fees
  • Can have significant delays in mining process if blocks are unable to be found
  • Endless possibilities in use cases because of dAPP development opportunity

Stellar

Stellar is a blockchain platform that supports simple smart contracts. It is not as well-suited for the development of decentralized applications (dApps) as some other platforms due to its non-Turing complete computing environment, which means it lacks the full range of computational capabilities found on platforms like Ethereum. Despite this limitation, Stellar has gained widespread adoption due to its focus on enabling fast and low-cost transactions and its support for a variety of use cases, including cross-border payments and microfinance. It has its own native cryptocurrency called Lumens (XLM), which is used to facilitate transactions on the platform.

Pros Cons Use Cases
  • Simple smart contracts make simple agreements easy to implement
  • Public chain, everyone can see everyone else’s transactions
  • Micropayments, as transaction fees are low

Which blockchain framework is best for which use cases?

Conclusion

When choosing a blockchain framework, it is important to consider the specific requirements and goals of your business, as well as the unique features and capabilities of each platform. Some platforms may be better suited for certain use cases, such as Ethereum for dApp development or Hyperledger for enterprise applications. Others may be more focused on specific features, such as Ripple’s emphasis on low-cost, high-volume transactions or Lisk’s support for JavaScript development. By carefully evaluating your needs and comparing the different options available, you can determine the blockchain framework that best fits your business needs.

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