As bitcoin becomes more integrated into the economy, investors recognize the importance of scalability. bitcoin investors are particularly interested in the potential of this digital asset to transform not only retail establishments and personal finances, but also the events of large institutions. From the financial sector to the technology sector, bitcoin is a novel domain that is set to transform the way finance moves. There are critical considerations that institutional investors must make regarding their network infrastructure before backing bitcoin on a large scale. Learn how to prepare yourself with the following insights that enable security, speed, scalability, and efficiency in institutional bitcoin trading.
Why Institutional bitcoin Investors Need Optimal Networks
The rise of bitcoin is similar to the early days of the Internet. The speed at which society is adopting bitcoin demands efficient and effective upgrades to the network infrastructure. Financial security is of utmost importance and the speed at which data can be transferred is paramount to the effective integration of bitcoin into large institutions. Optimal network performance provides institutional bitcoin investors with the following benefits:
- Improved transaction speed;
- Greater security;
- More sustainable energy use;
- The ability to accommodate large-scale bitcoin operations.
Upgrading your network infrastructure is a strategic necessity when trying to enter the bitcoin space on a large scale. The bitcoin market is unique in its volatility and a fast and stable network connection is imperative to keep up. bitcoin can greatly diversify your institutional investment portfolio, but you need to know the requirements to do so on a larger or even global scale.
Network stability
As an institutional investor, you likely already work in an established network. Large companies usually have their own servers to keep their network stable and running at all times. This is crucial for operations to run smoothly, and that includes investments in bitcoin.
Blockchain infrastructure It requires a certain level of network stability due to the large amounts of transactional data that are stored in multiple databases in a distributed ledger. bitcoin uses blockchain technology to ensure that it is almost impossible for data to be hacked or corrupted. To ensure your network is stable enough to transfer data between nodes, you must have:
- Scalable blockchain software, such as IBM Blockchain;
- Trusted internal servers or external servers, such as the Cantonal Network;
- Sufficient hardware, such as robust graphics cards and CPUs;
- Stable and fast Internet connection.
You likely have multiple devices on a network communicating with each other at once, so having a stable business Internet is imperative. Your bandwidth must be able to accommodate large amounts of data being transferred and stored on internal and external servers at all times.
Monitoring performance metrics
When selecting an Internet Service Provider (ISP), hardware and software package for your institutional bitcoin investment, check key performance metrics such as ai/blogs/what-is-packet-loss-and-what-is-jitter-a-guide-to-isp-metrics-that-matter”>packet loss and jitter. Packet loss occurs when some parts of the transferred data do not reach the receiving end. Large amounts of data are most easily transferred over networks when they are broken down into chunks or packets. However, some of these packets may be lost or corrupted if your hardware is insufficient, the software is buggy, or your ISP's network is clogged.
You may also experience jitter or the process of some of the packets arriving late. For bitcoin investment, this is a decisive factor. You need reliable, stable networks that won't fail. You can solve this by upgrading your hardware, hosting your networks on-site, or partnering with a powerful ISP with low packet loss and jitter.
Energy consumption
Institutional bitcoin is not only demanding in terms of data load, but also consumes a lot of energy. Consumers are increasingly interested in companies' commitments to sustainability, so finding crypto-mining”>Alternative energy sources for bitcoin mining and investment can be a strategic move. By employing energy-conscious movements like solar, you can enjoy:
- Lower energy costs and higher profits;
- Constant access to abundant energy sources without interruption of bitcoin investment;
- Independence from the main electrical grid, allowing you to be self-sufficient and have an advantage over the competition.
He solar energy potential revolutionizing bitcoin mining and trading is palpable. It is currently being optimized to harness more photovoltaic energy with less solar waste. Once these issues are resolved, using solar power for bitcoin transactions will be the best way to reduce carbon emissions and decrease dependence on the energy grid. This can provide institutions with the resilience and stability needed to foster bitcoin's long-term viability.
Cloud-based solutions
If you are looking to partner with third-party network solutions for institutional bitcoin investment, be sure to thoroughly vet the company. Cloud-based solutions can consume less energy and be less expensive than setting up your own secure on-premises networks. However, they must be just as secure so that bitcoin investment remains secure and scalable. For example, Google Cloud and Voltage partnered to create global Lighting Network solutions. This means they offer low-cost cloud-based services that are scalable and capable of transmitting data globally. Solutions like this set the standard for reliable cloud-based bitcoin transfers.
Emphasize speed, security and scalability
A stable network should also be a fast network. Your ISP should meet your expectations when it comes to high-traffic Internet speeds. Working with secure partners or on-site hosting servers is the best way to keep institutional bitcoin investment transactions safe. Large-scale investments require a level of scalability that the bitcoin industry is only beginning to experience. Be sure to review all third-party institutions you work with and regularly update hardware and software requirements. This will make institutional investment in bitcoin a breeze as you move into the future of finance.
This is a guest post by Miles Oliver. The opinions expressed are entirely their own and do not necessarily reflect those of btc Inc or bitcoin Magazine.
