Many big companies are using blockchain solutions so they can improve the money transfer options, and make their systems faster and more efficient. Most companies always want to follow new technologies, and implement innovations, since they can bring a lot of benefits to them. That’s why they are getting interested in blockchain, a concept that is tightly related to cryptocurrencies. But, it can be implemented in IoT, AI, insurance, healthcare, etc.
But first, let’s see what is blockchain.
A blockchain is a virtual data transfer protocol that requires multiple computer machines to be connected in a “chain” in order to function. With each transfer of data or money, a block node is created, in which only the one who creates it can write information. This creates a blockchain and is therefore called a blockchain.
This is an advanced technology that exists based on cryptocurrencies but can be implemented in other systems where needed. In fact, it’s somehow the computer architecture that is needed to protect the data being transmitted. It is a decentralized network, which means no one has control over what is happening.
If you are a business, you may need to move your current system to blockchain solutions, so you can ensure faster transactions. The main advantage of it is that creates recordings that can’t be changed by anyone. It’s also an interesting and functional way to sign smart contracts and ensure trusted protocols between the service providers/sellers and customers, without anyone between.
But, in order to do all these things, you need to be aware of the key factors and advantages to consider before you choose the right blockchain platform for your business.
1. Consider outsourcing solutions as an option
If you want to properly implement this protocol, you need to hire a lot of people and invest in powerful machines, including advanced cooling systems. That may cost a lot, and you need to pay these people accordingly. Or, you have an option to find a trustworthy provider, who offers automated and transparent blockchain services for businesses. And while here, take a look at https://4irelabs.com/blockchain/.
2. The capacity of the network or platform
Most of the services will offer platforms with a high TSP rate. In this case, TSP is short for transactions per second. Cryptocurrencies work in a different ways, and they are not equal. A BTC network can support 7 transactions per second, but for ETH, it’s 20 transactions per second. Other payment technologies are even faster, with 100, 500, or even 1000 transactions per second, depending on the currency or the payment protocol.
This feature is also known as scalability, which consists of speed, security, and decentralization. So, it’s one of the most important features when choosing your blockchain platform.
3. Privacy and safety
Blockchain is made to protect the privacy of senders and recipients. The blocks always contain a lot of information about these people or parties, and protection is highly required. The current solutions may not be efficient enough, and there are vulnerabilities that can harm privacy. But, blockchain is a much safer option, because it’s decentralized and once the block is “sealed”, there is almost no chance for anyone to access that data, change it, or manipulate it in any way.
4. Be aware of the disadvantages
This can be a surprise to you, but there are some disadvantages to this protocol. Transactions are so fast that it is crucial that you do not make mistakes when entering data. If you still make a mistake, you do not have an interval between which you can react and stop the transaction. This happens rarely, but still, there are examples in which the money went to the wrong place and there was no way to get it back to the sender or redirected to the right recipient.
If you want to implement your own system, be prepared for higher electricity costs. This problem creates openness to alternative sources, but it seems that no solution will be found soon.
Also, make sure that you have an efficient wallet key system in place so that certain amounts of money or data do not get stuck permanently on a device and you can not get it back.
5. When in doubt – ask questions
If you are not experienced in this, you may have problems finding the right platform for you. Also, you may take some expensive plan, when you don’t need it, or buy a cheaper plan, and that won’t be enough. So, when you talk to the provider, or you create a system yourself, don’t forget to ask these questions:
– How many transactions per second are enough?
– What level of privacy protection do I need?
– Is the system secure enough?
– Can I afford this platform?
– How is this solution implemented in my current strategy?
– What are the minimum requirements?
– How much does it cost for long-term plans?
When you put the issues like this, it’s much easier to resolve them in the best way possible.
As you can see, blockchain is a functional network only if you really need it and know how to use it. Therefore, you must first be aware of the needs you have, and then decide what you actually need in your business.
To do this, you need to follow how things are evolving on a daily basis and what is new in this technology. As time goes on, blockchain solutions become more functional, more accessible, and more optimal for business users.
Blockchain is already gaining ground in the business industry because it is an effective solution and easy to implement, especially if you use a provider for that purpose. This article should be your basis for how to choose the right platform, but also to learn how to help you grow your business.
We hope that now you understand better what are the key factors, and why are they important for your business to grow.