A Beginners Guide to Blockchain Agnosticism: Pros and Cons of the ecosystem 

0/5 No votes

Report this app

Description

A decade ago, the most related term to the blockchain was Bitcoin. Back then, there was no other blockchain but Bitcoin, and things were less complicated for businesses and blockchain developers. The last years have changed the trend: now, the most related term to the blockchain is blockchain agnosticism (creation of multiple blockchain protocols). But before passing to blockchain agnostics, let’s clarify what blockchain is first. It is one of the methods of distributed data storage. It can be used to record and track any kind of information, from medical records to elections. 

The main difference between a blockchain and conventional databases is decentralization. Firstly, this process is not monitored by any regulator or organization. And secondly, the information is not concentrated, say, on servers in one place, but is distributed in a massive network of computers worldwide.

What is Blockchain agnosticism?

Blockchain agnosticism is when a platform uses more than one singular blockchain protocol for businesses. From Ethereum to Hyperledger, various blockchain protocols have variant capabilities and are used in different situations and requirements. 

When one platform uses more than one sole blockchain protocol for business, that is how blockchain agnosticism is born. Different blockchain protocols are used in various situations and for diverse requirements. In the blockchain agnostic ecosystem, the business has the freedom of choosing between blockchains based on its business growth, marketing, and other strategies. 

Pros of Blockchain agnosticism

Imagine a company that starts with one protocol and no longer wants it; it has an option to change it to another one. Freedom of choice is crucial in such a condition for a company. 

You have just learned about the first advantage of a blockchain agnostic ecosystem. It happens very often that a company launches with one protocol that corresponds to its requirements and claims, but after some time, the protocol becomes inconvenient. Not to forget that the company is obliged to start everything from zero if not for blockchain agnosticism because they are attached to that blockchain. 

The next pro of this ecosystem is easier risk management. When the company is not dependent on one chain, developers find it easier to manage risks or change tactics regarding the B2B payment processing, transactions, etc. And the eventual advantage of blockchain agnosticism is that in this ecosystem, developers are allowed to explore other protocols simultaneously using the existing ones. 

Cons of Blockchain agnosticism 

Currently, the reason for blockchain’s success is agnosticism, but that a lot of blockchain platforms are isolated is a fact. High realization costs are one of the causes of that. 

The masses do not adopt blockchain agnosticism for this exact cause. But as usual, there is another perspective on this fact. Even if the ecosystem was not a part of the strategy initially, the high realization expenses pay off in the long term. 

Conclusion

In conclusion, it is fair to say that the conveniences of blockchain agnosticism outweigh its disadvantages. And despite the existing drawbacks, this ecosystem is worth being implemented, as it helps to escape the near-sighted solutions that are no longer actual. 

Leave a Reply

Your email address will not be published.