At ULedger, we seem to get the same questions from new customers or investors all the time:
- Aren’t all blockchains the same?
- Why not just use the Ethereum blockchain?
- Why can’t I just use IBM’s blockchain?
- Why build a new blockchain platform when there are already many others?
These are all questions we asked ourselves when we started ULedger over 3 years ago as well. Creating an entirely new blockchain infrastructure is a lot of work and very expensive. Believe me, we would have loved to use an existing blockchain platform for the business problems we are solving, but no other blockchains on the market were built for the enterprise. We needed a blockchain platform that would:
- Provide public consensus of transactions
- Handle immense volumes of data
- Keep enterprise data private
- Seamlessly integrate with an entity’s existing infrastructure
- Be cost effective in order to incentivize enterprises to adopt the technology.
Since none of the available blockchains at the time did any of these things, we built ULedger. Just as Internet Explorer, Safari and Chrome learned from Netscape and Facebook learned from MySpace, and Google killed other search engines, ULedger has learned from the successes and mistakes of earlier blockchain platforms and built the most scalable, cost-effective, seamless blockchain platform on the market.
The evolution of blockchain technology has been fascinating to watch. The relative success of the Bitcoin blockchain popularized the technology leading others to create forks off the bitcoin blockchain, or slightly improved blockchains like Ethereum. Ethereum went as far as to build its platform not just for cryptocurrency, but also for Dapps (Distributed Applications). The Ethereum blockchain quickly gained popularity, however, as time went on, the technology wasn’t able to progress in line with expectations, or in other words, it failed to scale with the amount of volume in the infrastructure. This led to others trying to add bandaids and patches to try to augment the Ethereum infrastructure, although, none of these workarounds have been effective. The Bitcoin blockchain and Ethereum are both examples of public blockchains, where every transaction is publicly corroborated and certified.
Then came private blockchains (or shared databases) like Hyperledger, which is used by IBM and other enterprises to sell blockchain solutions. Private blockchains were created to handle the data volume and scalability issues of public blockchains. However, private blockchains are not a trustless infrastructure, meaning that you must have trust in multiple 3rd parties to rely on the data from a private blockchain. A trustless environment is the entire point of blockchain in the first place. While private blockchains have their place, many would argue that they aren’t blockchains at all, but rather just distributed ledger technology, which has been around for a long time. Private blockchains may be a good stepping stone for enterprises to adopt blockchain technology, but they don’t add much value beyond making some business practices more streamlined with the use of smart contracts.
At ULedger, we quickly figured out that existing public blockchains have significant flaws when it comes to business or enterprise use cases and they are too expensive to operate, not scalable, don’t easily integrate into business infrastructure and they cannot handle the volume of data that enterprises produce. We also discovered that private blockchains don’t produce the public consensus needed to truly authenticate a transaction, therefore, we decided we needed to build a hybrid public/private blockchain that provides public consensus, but at the same time keeps sensitive information private, is easily integrated, cost-effective, and highly scalable.
This is why we built an entirely new blockchain platform.
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