Why Institutional Investors in Bitcoin Need Optimal Networks – Bitcoin Magazine

As Bitcoin is increasingly integrated into the economy, investors recognize the importance of scalability. Bitcoin investors are particularly interested in this digital asset’s potential to transform not only retail establishments and personal finances, but also the running of large institutions. From the financial sector to the technology sector, Bitcoin is a new domain that is poised to transform the way finances are handled. There are critical considerations that institutional investors must make regarding their network infrastructure before supporting Bitcoin on a large scale. Learn how to prepare with the following insights that enable security, speed, scalability, and effectiveness in institutional Bitcoin trading.

Why Institutional Investors in Bitcoin Need Optimal Networks

The rise of Bitcoin is similar to the beginning of the Internet days. The speed at which society is adopting Bitcoin requires efficient and effective upgrades to network infrastructure. Financial security is of utmost importance, and the speed at which data can be transferred is critical to the effective integration of Bitcoin into large institutions. Optimal network performance offers institutional Bitcoin investors the following benefits:

• Greater transaction speed;
• Reinforced 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 at scale. The Bitcoin market is unique in its volatility, and a fast and stable network connection is critical to keeping up. Bitcoin can greatly diversify your institutional investment portfolio, but you must be aware of the requirements for doing so on a larger or even global scale.

Network stability

As an institutional investor, you probably already work within an established network. Large companies typically have their own servers to keep their network stable and running at all times. This is crucial for operations to run smoothly and includes Bitcoin investments.

Blockchain Infrastructure requires a certain level of network stability due to the large amounts of transactional data stored across 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;
• Internal servers or trusted external servers, such as Canton Network;
• Sufficient hardware, such as graphics cards and robust CPUs;
• Stable and fast internet connection.

You’ll likely have multiple devices on a network communicating at the same time, so having stable business Internet is critical. Your bandwidth must be able to accommodate large amounts of data transferred and stored on internal and external servers at all times.

Keeping an eye on performance metrics

When selecting an Internet Service Provider (ISP), hardware, and software package for your institutional Bitcoin investment, check key performance metrics such as packet loss and jitter. Packet loss occurs when some parts of the transferred data do not reach the recipient. Large amounts of data are transferred more easily across networks when divided into chunks or packets. However, some of these packets may be lost or corrupted if your hardware is insufficient, your software has bugs, or your ISP’s network is clogged.

You may also experience process jitter or some packets arriving late. For Bitcoin investment, this is a hindrance. You need reliable, stable networks that don’t crash. You can solve this by upgrading your hardware, hosting your networks on-premises, or partnering with a powerful ISP with low packet loss and jitter occurrences.

Energy consumption

Institutional Bitcoin is not only taxing in terms of data load, but it also consumes a lot of energy. Consumers are increasingly interested in companies’ commitments to sustainability, so what to find alternative energy sources for Bitcoin mining and investment can be a strategic move. By employing energy-conscious movements like solar energy, you can enjoy:

• Lower energy costs and higher profits;
• Constant access to abundant energy sources without interruption from Bitcoin investment;
• Independence from the main energy grid, allowing you to be self-sufficient and stay ahead of the competition.

O 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 energy for Bitcoin transactions will be the best way to reduce carbon emissions and decrease your dependence on the energy grid. This can provide institutions with the resilience and stability needed to promote Bitcoin’s long-term viability.

Cloud-based solutions

If you want to partner with external network solutions for institutional Bitcoin investment, be sure to thoroughly vet the company. Cloud-based solutions can consume less energy and cost less than setting up your own secure on-premises networks. However, they must be equally secure for Bitcoin investing to remain secure and scalable. For example, Partnership between Google Cloud and Voltage 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 transfer.

Emphasize speed, security, and scalability

A stable network must also be a fast network. Your ISP must meet your expectations when it comes to high-traffic Internet speeds. Working with secure partners or on-premises hosting servers is the best way to keep institutional Bitcoin investment transactions safe and secure. Large-scale investments require a level of scalability that the Bitcoin industry is just 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 investing in Bitcoin a breeze as you move towards the future of finance.

This is a guest post by Miles Oliver. The opinions expressed are entirely his own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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