Integrating blockchain technology in businesses is crucial to pushing for decentralized technology adoption. In the near future, companies could benefit from enhanced security, faster growth, and increased transparency due to decentralized models that provide more empowerment and autonomy than centralization.
Cryptocurrency and blockchain have the potential to tackle issues like security breaches and database discrepancies and eliminate intermediaries. However, the lack of a proper legal framework hinders innovation.
Therefore, several blockchain projects are being developed according to current possibilities for easier integration. For example, the XRP Ledger supports high performance, low transaction costs, and optimized development in organizations that are confident in the future. Users of the ledger can leverage the native token for cross-border payments in global transfers and CBDC services. In addition, traders benefit from crypto liquidity by sourcing digital assets based on the XRP price prediction.
But the XRP Ledger isn’t the only blockchain helping enterprises evolve ― let’s see what other decentralized solutions are available on the market.
XRPL
XRPL is an L-1 blockchain whose features rely on speed, scalability, and sustainability. Its applications focus on business needs, which is why the ecosystem is growing through projects and apps on infrastructure (XRPSCAN), developer tooling (XRP Tokenize), and wallets (Crossmark).
Developers choose XRPL for business for the following advantages:
- Open-source and community-maintained network;
- Streamlined development through intentional innovations;
- High-performance through 1,500 transactions per second;
- Low transaction costs;
- Sustainable consensus mechanism ― the XRP Ledger Consensus Protocol;
Some of the companies collaborating with XRPL include the Canadian Imperial Bank of Commerce, IndusInd Bank (India), and Currencies Direct (England). These enterprises are leveraging blockchain features for faster and more efficient international payments.
Stellar
The Stellar project aims to build a bridge between decentralization and the real world by empowering developers to build digital wallets and DeFi (decentralized finance) apps through smart contracts. At the same time, Stellar helps companies scale their payments globally through payment rails or bulk payments.
A unique feature of the blockchain is the Soroban platform for smart contracts. It enables developers to use the Rust toolchain to create protocols, wallets, bridges, and more.
Stellar proved efficiency and is integrated in the following brands:
- ZettaBlock is an AI-based platform that uses Stellar for simplified blockchain development;
- Axelar is a Web3 interoperability platform used on Stellar as a gateway through Soroban;
- Allbridge supports cross-chain stablecoin swaps connecting Stellar with Ethereum, Solana, Celo, and Polygon;
Ethereum
Ethereum is one of the most popular blockchains in the industry. While its focus is primarily on decentralized applications (dApps), decentralized autonomous organizations (DAOs), and smart contracts, the project went towards businesses as well through the Enterprise Ethereum network.
The tailored version of the Ethereum blockchain focuses on privacy, security, and a company’s operational needs. The network presents several differences from the original blockchain, including its often-permissioned nature. This allows companies to control the environment and benefit from confidentiality.
The blockchain also supports interoperability and standards for compatibility with other blockchains, as well as customization and flexibility for developers. At the same time, Enterprise Ethereum helps address scalability by providing high transaction throughput.
What are the challenges of introducing blockchain technology within an enterprise?
Although more and more blockchain solutions strive to improve the business world through decentralization and transparency, several challenges arise. For example, many blockchains struggle to maintain decent energy consumption for their operations.
Ethereum had an estimated 93.98 TWh in 2022, but its electricity consumption footprint lowered considerably due to the Merge, an update replacing the proof-of-work consensus with the proof-of-stake mechanism. Blockchains that use mining to create new blocks and protect the network are prone to substantial energy consumption, as the process requires intensive resources for the computers to mine.
Another growing issue is interoperability. Blockchains should be able to communicate and exchange data safely, but achieving interoperability requires advanced protocols. Cross-chain capabilities are necessary for scalability and will be helpful in supply chain management, the gaming industry, or asset tokenization.
How can companies integrate blockchain?
Integrating blockchain within a business can be challenging, especially due to the industry’s lack of talent. The newness of cryptocurrency and blockchain is making it difficult for the labor market to help developers, miners, and other decentralized participants engage with companies, but this will change in the future.
Companies can use blockchain with the help of experts, with which they’ll go over the following steps:
- Designing a blockchain-based solution: distributed ledger technology (DLT) can better manage financial transactions and supply chains than regular systems;
- Choosing the blockchain that suits the brand’s needs: some companies prefer flexibility over fast transactions, while others want to benefit from affordable fees;
- Implementing tests: testnets are separate blockchains used for test programs and are approachable solutions;
- Launching a beta version: this step helps understand possible mistakes and develop a minimum viable product (MVP);
- Marketing and fundraising: running a campaign to raise funds for the project can be successful with the right marketing approach;
The future of blockchain integration includes AI
As we move forward with blockchain integration, companies should expect a growth in the use of AI-based products due to their advanced features. Combining blockchain with AI has pushed for innovation in the business industry, safeguarding data and making faster and better decisions.
AI and blockchain can work together to boost:
- Data integrity and security by storing transactions that no one can change and reducing human errors;
- Decentralized intelligence by supporting companies to train their AI models while maintaining data security;
- Automation with smart contracts by innovating decision-making abilities in models;
AI and blockchain integration have the potential to change industries like healthcare, by predicting disease risks based on patient data, or supply management, by monitoring products in real time and improving quality control.
Final considerations
Blockchains have evolved considerably, supporting more than their native cryptocurrencies. They established a new era of data security and management, providing solutions for the real world, where enterprises struggle with data safety and transparency. Blockchains like XRP, Stellar, and Ethereum are the most equipped for business integration due to their features that focus on decentralization, safety, and immutability.
