Design Considerations for Building Extensible Blockchain Networks

Blockchain technology has been widely embraced by businesses for its ability to provide a reliable and secure transaction network. However, as these networks grow, it becomes increasingly important to ensure they remain extensible, with the capability to accommodate new members and adapt to evolving business requirements. In this article, we will discuss some key design considerations for building extensible blockchain networks.

Flexibility with Membership

One of the key design considerations for building an extensible blockchain network is ensuring flexibility with membership. As new participants join the network and others leave, it is crucial to have a mechanism in place to manage membership changes, including access to shared data. The member type is also important to consider, as roles and types of members may change over time.

Compute Equity

Another consideration is compute equity, which refers to the split between trust systems based on cryptocurrency and those based on compute equity. Different participants may have varying business interests in the network, which can impact the long-term sustainable infrastructure costs and maintenance. For instance, cost models of regulators may differ greatly from cost models of the primary beneficiary of a blockchain-powered business network.

Shared Business Interests

Shared business interests are also important to consider when designing a blockchain network. While these shared interests can provide many advantages, they can also lead to operational issues such as data sharing and ownership as entities join and leave the network. It is important to evaluate these issues carefully, as regulations around data ownership evolve and industry requirements for the durability of data change over time.

Governance

Governance is critical for managing technical artifacts such as technology infrastructure, data, and smart contracts in a blockchain network. It is recommended to layer governance into several categories, including blockchain network/technology governance, blockchain data governance, blockchain smart contract governance, and blockchain transaction management governance. This layered approach ensures that the blockchain network has sustainable operational elements and can accommodate business growth.

Conclusion

In summary, designing an extensible blockchain network requires careful consideration of several key factors, including flexibility with membership, compute equity, shared business interests, and governance. By addressing these design considerations, businesses can build blockchain networks that are scalable, adaptable, and sustainable, enabling them to remain competitive and innovative in an ever-evolving market.