What Does it Mean to be Blockchain Agnostic? And Why Does it Matter?
So, you’ve decided it’s time for your enterprise to join the exciting digital asset community.
In doing so, you’ll be able to generate significant levels of revenue, reinforce your brand, and move closer to achieving your long-term goals.
However, even once you have made the decision to enter the digital asset space, there are many different decisions that you will need to make. For example, if you are planning on launching a project that involves the use of non-fungible tokens (NFTs), you are going to need to choose a blockchain to work with—and with each passing day, more and more blockchains are offering themselves to the broader public.
How do you know which blockchain to choose? And if, for whatever reason, you needed to make a change in the future, will your enterprise be in a position where you can actually do so?
Below, we will talk about the importance of being “blockchain agnostic” within the broader digital asset community.
What is the Blockchain? How Does it Work?
The blockchain, broadly speaking, is a digital database that is shared across multiple nodes within a decentralized network. The blockchain is an accessible ledger that can be used to securely store a variety of types of information, including the ownership and distribution of digital assets. Most blockchains can be categorized as either public (there is no centralized authority) or private (the blockchain is controlled by a single source or group)—and some blockchains are hybrids that are somewhere in between.
Ultimately, the blockchain is what makes it possible for people to know who owns what within the digital asset world. Do you currently own any cryptocurrency? How many kinds of cryptocurrency do you own and how much of each are currently within your possession? Through the use of the blockchain, these questions can be easily answered, without dispute.
The blockchain can be used for both fungible (interchangeable) currencies, like Bitcoin, or non-fungible digital assets, categorized as NFTs. Blockchain technology actually dates back as far as 1991, but it was not until the emergence of Bitcoin (2009) that this technology was fully put to use.
Currently, Ethereum is the most popular blockchain in circulation (NOTE: Bitcoin is not a blockchain itself, though it does utilize blockchain technology). However, there are many different blockchains available to choose from, and you should explore your options before making any final decisions.
What Does it Mean to be Blockchain Agnostic?
There are countless reasons an enterprise might choose to use one blockchain over another: the need to decrease operating costs, increase accessibility, reduce energy consumption, or offer customized solutions might all affect your final decision.
This is especially important as the attributes of both public and private blockchains change over time. Blockchains with low transaction fees today can become prohibitive in the future as fees rise. Blockchains with high uptime today, may suffer from availability and reliability issues in the future.
For a project to be blockchain agnostic means that it is not structurally or otherwise tied to any particular blockchain (such as Ethereum). In other words, the project is ‘block-chain neutral’ and can potentially migrate from one blockchain to another, as needed.
Brands should be concerned with the blockchain they choose to execute an NFT project, the risk of using the “wrong” blockchain could bleed into reputational risk that could negatively affect the brand.
What Are the Benefits of Being Blockchain Agnostic?
Sasco Digital Assets is a blockchain agnostic firm that is committed to helping its clients develop sustainable, dynamic digital asset strategies. Rather than being tied to a single blockchain—something that has become common within the digital asset world—Sasco’s solutions make it possible for firms to find a blockchain that works for them and make changes as needed.
The future of digital assets is constantly evolving—and the next stage of this evolution, Web3, is developing even faster than anticipated. But what we do know will be important in the future is flexibility. By working with a blockchain agnostic partner and remaining flexible enough to pursue new opportunities, your enterprise can take full advantage of these new opportunities for growth.