The potential of Blockchain technology is not just restricted to cryptocurrency mining. Countries and industries around the world now understand its versatility and are practically applying its uses. The recent development in this field will allow corporates to dominate real-world projects with ease in coming future. Technically termed as Enterprise Blockchain, it’s a freshly-baked concept that is ready to disrupt the enterprise software market.
What is Enterprise Blockchain?
One of the major concern of corporations is to successfully achieve data security and privacy. And factors like intellectual property, business process and regular transaction forces enterprises to avoid the use of public cloud solutions. Using public platforms will give competitors an edge as they will have all the information about their competitor’s business activities, operation, and process.
To solve the above-mentioned problems, the concept of Enterprise Blockchain has come into existence. Enterprise Blockchain is based on two basic concepts: Private transactions and permissioning.
Permissioning: Here, the nodes of the Blockchain are controlled by “trusted” participants and only sanctioned users can participate in transactions.
Private transactions: Here, private smart contracts are used for transactions that veil business operations and procedures from authorized users.
Enterprise blockchain uses many tactics like cryptography, access command to safeguard those private transactions that are detectable to only sanctioned parties.
Benefits of Using Enterprise Blockchain
- Businesses are showing interest in Blockchain technology due to:
- Shrinking transaction cost along with faster transaction.
- Upgrading product and system security
- No fraud/counterfeiting
- High transparency
- Customer loyalty
Active Groups and Consortia Working on Enterprise Blockchain
Top-notch companies like IBM are working alone on different projects for the implementation of Blockchain technology. Also, several industry consortiums have set up consortia to team up on Blockchain technology projects.
Enterprise Ethereum Alliance (EEA): Includes 500 companies like Cisco, Bancor, Accenture, Consensys, HP Enterprise, Intel, NTT Data, JP Morgan, Pfizer, Microsoft, Thomson Reuters, and Samsung etc.
Mobility Open Blockchain Initiative (MOBI): Includes 30 members like BMW, Ford, GM, Renault, IBM, Hyperledger, Bosch, IOTA, Blockchain at Berkeley
R3 Fintech Consortium: A group of 200 members including Barclays, Citibank, Bank of America, Goldman Sachs, Morgan Stanley, Credit Suisse, JP Morgan, UBS etc.
Enterprise Blockchain Platforms
We must understand that Blockchain technology is based on distributed ledger technology (DLT) that stores data within a protected and distributed database. The information stored inside the ledger is in the form of blocks that cannot be changed single-handedly. All the data blocks are connected to each other as chain of blocks. As far as Enterprise Blockchain is concerned, they are based on different platforms like
- Hyperledger Fabric
- R3 Corda
- Digital Asset
- Hedera Hashgraph
Enterprise Blockchain Vulnerabilities
Blockchain based cryptocurrency has its own independent financial ecosystem. Any error or fault within Blockchain network or cryptocurrency might result in something disastrous. It’s the kind of damage that cannot be averted for every online user.
What are smart contracts? They are programs responsible for distributing transactions based on predetermined procedure. Here, the technology lets distribution across registered parties in a pattern and format that no one can alter. At present, smart contacts affixed to the Blockchain are unchangeable. But any flaw found in the coding of Smart Contract can be misused by hackers. Also, migrating to the new contract is a meticulous procedure.
Illegal contents are the duplicates that all node operators must keep. This process of forcing node operators to keep illegal contents might threaten the integrity of Blockchain. It is up to node operators, whether they want to drop or keep the unlawful content. This pushes users into the risk of losing everything based on the will of the node operators.
Every country has different laws on Blockchain technology and hence the issues related to authority are more complex. Blockchain based transaction and their related issue cannot be addressed based on a single law as for every nation, a physical node is available. Now the cost and time involved in resolving jurisdiction issues can be a painstaking task.
The complex technology is alien to most of the consumers and there is lot of mistrust and confusion. Most of them are misinterpreting the technology or misusing it to mug other people. In such a scenario, the integrity and credibility of Blockchain technology is at risk and mist lead a catastrophe.
So, this was all about Enterprise Blockchain and what are its vulnerabilities and versatility. If you have anything to share, please comment in the section below.