Much of people's interest began with the speculative frenzy surrounding Bitcoin. But it is based on an older blockchain platform that faces energy consumption and speed challenges. Fortunately, modern blockchain token platforms are being developed to help overcome these limitations and provide practical value for other business uses and applications.
Let's learn all about the key features, differentiators, strengths, and weaknesses of the most used Blockchain token platforms in the real world. After all, interest in blockchain platforms has grown significantly to streamline supply chains, improve traceability, simplify commerce and improve financial transactions; read on.
The evolution of blockchain platforms
The evolution of blockchain platforms has fostered a greater awareness of decentralized finance or DeFi. It intends to drive new business models that pose significant threats to traditional banking, finance, and supply chain finance. After all, blockchain platforms could disrupt legacy supply chain business and technology processes.
For example, US requirements for pharmaceutical companies to track products and materials require a new approach for supply chain participants to share and transact data more efficiently and transparently than previously required.
The top three blockchain frameworks for these use cases are R3 Corda, Hyperledger, and Ethereum. However, EOSIO and Quorum are also gaining ground.
● Ethereum
This platform was introduced in 2013. Ethereum is one of the oldest and most established blockchain platforms. It provides a truly decentralized blockchain comparable to the Bitcoin blockchain network. Its strong point is to allow true decentralization with support for smart contracts.
However, its main weaknesses include slow processing times and higher transaction processing costs compared to other blockchain platforms. In addition to its role as a blockchain platform that underpins enterprise applications, it has its cryptocurrency called Ether.
The Ethereum platform is widely adopted by technologists building decentralized applications, or dApps, on the Ethereum network. For example, numerous platforms and exchanges exist for non-fungible tokens (NFTs).
In addition, it has a mature ecosystem of tools for writing smart contracts using the Solidity programming environment, which runs on the Ethereum Virtual Machine.
Moreover, alternative blockchain networks can process transactions much faster at a potentially lower cost than Ethereum. However, many observers expect this to change after Ethereum adopts a more efficient security mechanism.
It also has an active developer community orchestrated by the Enterprise Ethereum Alliance, with over 250 members, including Intel, JPMorgan, and Microsoft.
● IBM Blockchain
IBM Blockchain is a private, decentralized blockchain network that has been most successful with less risk-averse enterprise customers. It allows you to connect to the corporate cloud and legacy technologies more seamlessly than other decentralized networks.
In addition, the IBM Blockchain developer tool is flexible, functional, and customizable. Also, IBM has invested in creating a user-friendly interface to simplify critical tasks such as configuring, testing, and quickly deploying smart contracts.
Rakesh Mohan, IBM's director of development for blockchain solutions, said the company had seen significant progress in financial and banking services and the supply chain. Some successful blockchain applications include IBM Food Trust, which has completed over 18 million transactions representing over 17,000 products. And also, there is the Blockchain Community Initiative in Thailand, which supports services such as payment obligations and corporate auctions for 22 Thai banks.
● Hyperledger fabric
Hyperledger Fabric is a set of tools that help build blockchain applications sponsored by IBM and The Linux Foundation. It has a rich ecosystem of components that can be plugged into a modular architecture. Because of this, it works well in closed blockchain deployments, which can improve security and speed. In addition, it also supports an open smart contract model that can support multiple data models such as unspent transaction account and output or UTXO models (see sidebar).
Furthermore, Hyperledger Fabric can also improve data privacy by isolating transactions across channels or enabling need-to-know private data sharing across private data collections. However, according to its proponents, it also allows for high-speed transactions with low completion and confirmation latency.
Also, the latest developments even allow an organization to join a channel without copying all history. This allows for a faster boot process with less storage required. There is an active and diverse community around Hyperledger Fabric that is working on adding more features related to consensus algorithms, additional privacy options for GDPR compliance, and operational improvements.
● R3 Rope
Whether R3 Corda is a blockchain or an alternative distributed ledger is debatable. Because it uses a new consensus process in which transactions are linked cryptographically rather than batching them periodically, it avoids the problems associated with scalability. To put it another way, all transactions are executed in real-time, which is a major advantage over other blockchains.
Also, financial transactions and smart contracts can be made more efficient and secure by using the R3 consortium since Corda provides a secure platform. Bank of America, HSBC, Intel, and Microsoft are all strong supporters.
In light of these facts, Corda stands out as a strong contender to become the primary platform for insurance-related transaction processing. On the other hand, other federated blockchain networks are a threat since they can execute transactions more quickly and for less money.
● Tezos
Tokenized trading cards linked to digital assets are called NFTs, and Tezos is an earlier platform that enables decentralized applications, smart contracts, and these new financial instruments. Allows dynamic protocol updates and modular software clients that can be used for various purposes.
As a result, the Tezos community has been improving the platform swiftly. It includes recent additions that have improved performance and expanded the maximum size of smart contracts.
● EOSIO
On January 1, 2018, the EOSIO open-source project went live. Smart contracts and decentralized applications may be developed with ease. A complex PoS-based consensus method is used, which, according to supporters, provides superior performance to previous techniques like Ethereum. Support for a voting feature on platform changes is also included.
Moreover, application deployment benefits from rapid transactions and advanced account permission features. In addition to identity management, supply chain management, and gaming, the platform allowed for the development of more than 400 applications
● Stellar
Stellar is one of the most recently optimized blockchain systems for many decentralized financial applications. The Stellar Consensus Protocol is therefore used to speed up the processing and finalization of transactions on a public blockchain network.
However, safeguards are also in place to prevent criminals or suspicious individuals from participating in financial transactions. No wonder many companies use it for international trade and cross-border currency exchange.
● Quorum
JPMorgan Chase has built a customized version of Ethereum called Quorum. As a result, it takes advantage of the Ethereum blockchain platform's core work to provide an environment that banks may use to conduct their business.
Furthermore, over a private network, it can handle high-speed transactions between financial institutions like banks and insurance firms. Aside from these privacy improvements, it supports requirements such as GDPR (Europe) and CCPA (California).
Conclusion
Blockchain token applications in supply chain tracking, trade finance, digital assets, and identity management are moving beyond the pilot stage. However, there is also some activity in using blockchain platforms to build certain ERP functions, such as supplier and supply chain management.
There are several types of Blockchain token applications like R3 Corda, Hyperledger, Ethereum, etc. You just have to understand your project and what you aim to achieve. It's only then that you would be able to choose the best blockchain token apical that suits your crypto project's scope.
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