Tips For Choosing The Right Blockchain Network For Your Project
Posted By : Priyansha Singh | 31-May-2022
How To Choose The Right Blockchain Network?
When we take a glance at the trending and most sought-after technologies of the decade, the blockchain is indubitably one of them. Initially centered around transaction-related activities in the financial sector, blockchain platforms are now more in demand for decentralized application development, metaverse development, and NFT marketplace development. Nevertheless, through the application of DApps, businesses across a myriad of industries have explored the potential and implementations of blockchain technology, making it a prime reason why it has become the linchpin of digital transformation and profound innovations in the tech industry.
Along with its increased adoption, wider recognition, and technology improvements, more and more businesses are seeking to enter the blockchain market. However, due to a long list of existing blockchain solutions, it might be a challenge to select the right blockchain development network that is right and most suitable for your business.
In this blog, we have gathered knowledge and expertise from our 10+ years of decentralized projects and blockchain platform development experience to help you define crucial aspects for choosing the most preferable blockchain network in accordance with your business requirements.
What Should You Consider Before Selecting The Right Blockchain Network For Your Business?
Application Security Demand
Blockchain can be segmented into three different solutions:
With a centralized blockchain solution, businesses can get a single authority control for the network. In the case of decentralized blockchains, businesses can build platforms without any governance from third parties and the data will be safely shared throughout the network. On the other hand, the third major solution is hybrid, where the centralized blockchain solutions form a connection between the decentralized networks.
Therefore, if your application requires private information such as business documents, addresses, names, and other sensitive details from the users, then you should consider avoiding decentralized solutions. In this case, the data will be visible publicly online. However, if your application is devised to promote transparency, then you can store the required data on a centralized solution or public chain that is easily accessible. Furthermore, if it is not necessary to store data for your business permanently, then you can consider keeping it off-chain.
- Application Scalability
Blockchain frameworks and databases can potentially save a colossal amount of data from an application. However, they are essentially “distributed” across nodes with different scalability.
Moreover, in blockchain technology, latency plays a crucial role that denotes the time taken to search and route information between nodes, and the answer to minimize this is: Distributed Ledger Technology (DLT).
As the participants and transactions increase, the blockchain platform must also evolve and adapt to this growth. If your DApp is not transaction-intensive and would function well with certain escrow agreements, we recommend restricting the network and vendor decision to cost, quality, as well as ease of use.
However, if your decentralized app needs extensive transactions, you should viably assess network transaction fees and examine side-chain implications for security/liability.
- Private vs. Permissioned vs. Public Blockchain Networks
Preeminently, there are three types of blockchain development frameworks i.e. private, permissioned, and public.
- Private Networks: These blockchain networks are shared between trusted parties only and are not made open to the general public. They have zero latency and are very fast. A majority of the private networks do not leverage digital assets and have the same immutability and security advantages as decentralized blockchain networks.
- Permissioned Networks: These networks are typically visible to the public however any type of user participation is strategically controlled. As compared to public networks, they subsequently have low latency and are very fast plus they inhibit high storage capacity.
- Public Networks: These are predominantly decentralized blockchain networks that users can seamlessly access and participate in at any level, including things such as trading NFTs, minting tokens, running full nodes, and so on.
Establishing The Type of Decentralized Project For Your Business
- Building an entire blockchain ecosystem from the ground up
The initial selection of blockchain-based solutions depends on the fact whether your business processes lay solely on the blockchain. In this case, we recommend developing your own decentralized system from the scratch.
At Oodles technologies, we have a seasoned team of blockchain experts and the right resources for exceeding your business needs. We have in-depth industry knowledge, thereby enabling startups and established businesses to leverage blockchain technology the right way and with the right selection of blockchain networks.
- Creating a bridge or layer-2 solutions
This type of project is suitably applicable in situations where the blockchain is already selected, and there is a requisite for developing layer-2 solutions for it such as Ethereum Plasma. Please note that in this case, your business should also be entirely laid on the blockchain.
The other way is when there is a need for the creation of a bridge between two or more DApps or blockchains. Moreover, with Layer-2 solutions like Polkadot garnering so much demand in recent times, we expect a high demand for these types of blockchain solutions along with their increased adoption.
- Reinforcing your current solution with blockchain technology
This type of project development approach concentrates on DeFi, NFTs, and the adoption of payment systems to your existing systems with blockchain technology. In further explanation, it means that an existing blockchain is either integrated with the client’s solution or it requires forking any selected digital assets or NFTs and adapting it in accordance with customer requirements.
- Architecting Decentralized Applications
It is applicable when your business processes entirely depend on or are somehow connected to the blockchain. Any of the existing decentralized platforms such as Opensea, Uniswap, Polymarket, and Augur can be the rightful example of leveraging this approach. Subsequently, it is also the apt solution for any DeFi project.
When it comes to selecting the right blockchain network, the development of decentralized apps is relatively the most challenging. This is mainly because blockchain developers need to take a number of different factors into consideration as well as smart contract development solutions that would work best with the business requirements.
Here are some of the most prominent and sought-after blockchain networks that you can consider:
- EOS networks
- Ethereum networks
- Hyperledger networks
- Polkadot Multichain and Parity Substrate
- Solana and Polygon/Matic
- Cosmos and Tendermint SDK
There is a multitude of blockchain networks that are causing quite a buzz in the tech landscape. Moreover, the potential of blockchain technology to solve complex problems in a secure, efficient, time-sensitive, and cost-effective way is the reason behind its mega-scale adoption and huge popularity.
However, selecting the right blockchain platform ultimately boils down to identifying your business needs and the requisites for transparency, security, accessibility, and scalability.
If you are looking for blockchain app development services or seeking to leverage related technologies such as NFTs and metaverse solutions, feel free to drop us a line. Our experts will get back to you within 24 hours.