How to choose a blockchain framework?
With so many chains and DLT (distributed ledger technologies) out there, how do you choose which one to use? That’s obviously after assessing that there’s a real implementation use case in your business. Each framework has its unique attributes suited for specific applications. Let’s explore 5 frameworks.
Hyperledger is an open source collaborative effort created to advance cross-industry blockchain technologies. It is a global collaboration, hosted by The Linux Foundation, including leaders in finance, banking, IoT, supply chain, manufacturing and technology.
For example, IBM Blockchain is powered by Hyperledger. IBM is a premier member of The Linux Foundation’s Hyperledger Project, a cross-industry collaborative effort to create a standard blockchain suitable for business. It is permissioned, open sourced, openly governed, and allows for regulatory transparency.
Business Blockchain frameworks hosted with Hyperledger:
Hyperledger Burrow (formerly known as eris-db) is a permissionable smart contract machine built in part to the specification of the Ethereum Virtual Machine (EVM).
Hyperledger Fabric is an implementation of blockchain technology that is intended as a foundation for developing blockchain applications or solutions.
Hyperledger Iroha is a distributed ledger project that was designed to be simple and easy to incorporate into infrastructural projects requiring distributed ledger technology.
Hyperledger Sawtooth is a modular blockchain suite designed for versatility and scalability.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.
These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk.
The Ethereum network is permissionless, unlike Hyperledger or Chain. Therefore anybody can join the Ethereum network and transactions are transparent, welcoming public auditability.
Chain Core’s infrastructure enables organizations to issue and transfer financial assets on permissioned networks. This allows only authorized and identified entities to become a part of the blockchain network. Its business model is in the middle of the centralization to decentralization spectrum, which means that creation, control and transfer of the assets on the chain are decentralized but the network is operated by a “federation”, allowing all asset transfers to be confidential, secure and KYC-AML compliant. Their infrastructure also integrates with financial services applications and data warehousing solutions.
IOTA’s ledger is ideal for use cases requiring micropayments and connected devices. Autonomous devices can be registered on the blockchain, leased without human involvement, and receive payment using IOTA’s native currency. Now, devices can achieve self-sovereignty by owning their wallet to store digital currency. This model works well for the renters, as they pay-per-usage, transact automatically with devices in a secure and trusted matter with no extra transaction fees.
Sia provides a decentralized private cloud solution based on blockchain technology that is redundant, private and far more affordable. Sia’s cloud storage is not provided by a single organization that has complete control over the hardware that stores their information. Sia splits apart, encrypts, and distributes files across a decentralized network. Since their customers hold the keys, they own their data. No outside company can access or control their files, unlike traditional cloud storage providers.
Putting it all together
Each ledger is best suited for specific types of applications. While identifying whether your use case requires blockchain is the first step, the second piece of the puzzle is finding a ledger that best fits your desired use case. The flowchart below sums up the ideas presented through this lesson to provide a guideline to decide which blockchain to use: