Blockchains are becoming more popular but a person must understand how they work before they can begin investing in this currency. Since there is no central authority to regulate the trades it is important to get as much information as possible on blockchains. These are some questions to ask before getting involved with blockchains.
1. Will Immutability Be Needed?
Immutability will ensure there are no changes made to the blockchains in their historical records. If this method is not used, it is important to find out what other methods will be used so that the data is unchanged.
2. Will Multiple Entities Be Involved If There Is A Problem?
Often if there is an issue, a single organization will be assigned to solve it. This will allow them to come up with a solution in a reasonable amount of time.
3. If Multiple Entities Are Used, Is There Trust Between Them?
Blockchains are able to reduce the need for trust between different entities. Trust should exist but the blockchain solidifies it.
4. Can All Participants See The Blockchain’s Transactions?
Individual transactions can be anonymous. It is best to check the external controls that are being used. This includes the escrow and the notary services to help validate the transaction. If they able to fit the user’s needs, no additional changes must be made.
5. Is There A Good Fit For The Application Design And The Blockchain’s?
If there is no consistency in the design, it cannot be adapted to fit the blockchains. If they have worked together in the past, possible issues and friction need to be examined for future use. This will make sure everything runs smoothly.
6. What Are The Performance Requirements For Blockchain’s?
A blockchain is designed to be able to support a specific number of transactions per seconds. The user needs to know the limit of transactions that can be completed every second and compare the support for different blockchains.
7. How Important Is System Distribution?
Distribution is one of the most expensive components and is not something the average user needs to worry about. Those looking for advanced features should check the security and the reliability of the system examining the node failures.
Blockchains can help with several issues but it is important to understand how they work. These questions can help a user see the limits in blockchains and find servers that are able to fit their needs.
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