Some companies may fall into the trap of choosing a blockchain that doesn’t align with their goals, opting for the most popular one, or partnering with a blockchain not yet ready for onboarding users.
When deciding on a blockchain to develop on, consider these key elements:
- Technology – the speed, reliability, and security of the network.
- Ecosystem – the community of users and developers supporting the network.
- Focused growth – the entities supporting the network’s development and growth.
- Legal compliance – it is critical for the mainstream adoption of the technology, considering the rules and laws applied to the blockchain.
This article is an introduction to a deeper explanation found in our ebook: Deciding on a Blockchain.
Technology
Blockchain technology has the power to revolutionise the way future generations handle data, finance, and human interaction. With a vast array of benefits, here are just a few worth mentioning:
- Full traceability of any information on the blockchain
- Smart contracts and automation
- Increased speed and efficiency
- Increased security
- Holistic view of transparency from all parties involved
- New business models, products, and services
To fully realise the advantages of blockchain, it’s crucial to apply it properly. When deciding on a blockchain, consider factors such as:
- The consensus mechanism
- Transaction per second (TPS)
- Block speed & fast finality
- Cost structure
- Security
- Network maturity
- Database integration
- Environmental impact
These factors are important elements for your whole assessment.
Ecosystem
It’s commonly known that the community is comprised of the users, developers, thought leaders and investors of a public blockchain. It goes without saying that the community plays a vital role in the network. Without a community, the blockchain would be of no use and would not receive any development. The community provides the basis for the evaluation of the technology. If it is poorly developed, then it’s unlikely to attract any users. Overall, the community plays a big role in:
- Developing decentralised applications (dApps)
- Influencing the token price
- The governance model of a public blockchain
- The stability of the network
Focused Growth
“Focused growth” refers to the entity at the forefront of the blockchain network, responsible for driving its development, managing executive functions, and guiding its adoption. This is a crucial consideration when choosing a blockchain to develop on, as the goals and direction of the network are set by this organisation. The hallmark of a strong entity in this role is solid leadership and comprehensive documentation for developers to aid in onboarding. These organisations are often referred to as “foundation companies.” Keep an eye out for incentive programs such as grants and partnerships, as these are common in the blockchain space and can indicate a thriving ecosystem.
Legal Compliance
In the rapidly evolving world of web3, it is all too easy for businesses to overlook the importance of compliance with relevant laws and regulations. This may cause significant issues down the road, potentially jeopardising the mainstream adoption of this innovative technology.
To ensure that your blockchain solution is in line with legal requirements and protects the security of your users, it is crucial to choose a platform that supports compliant solutions. This will give developers and users peace of mind, knowing that their transactions and data are secure and compliant with all relevant regulations.
Unfortunately, there have been many cases of blockchain projects falling foul of data breaches, scams and other security issues, simply because they failed to consider the importance of compliance. Don’t let your business be caught in the same trap – before choosing a blockchain, take the time to assess its level of compliance and ensure that it provides the necessary safeguards for your users.
Learn More
The blockchain space can be overwhelming, but don’t worry! We have created an in-depth ebook covering each element you should consider when launching your business on blockchain. And the best part? It’s available for free!
