Many mainstream companies have adopted the technology after recognizing it’s possibilities.
Blockchain For Enterprise
Blockchain Technology has the potential to revolutionize several sectors and industries.
Many mainstream companies have adopted the technology after recognizing it’s possibilities.
So, let’s look at why and how Blockchain technology benefits enterprises allover the world.
Public vs Private Blockchains
Public Blockchain
Good examples for Public Blockchains are Bitcoin and Ethereum.
These Blockchains provide many of the functions needed for enterprises, except privacy.
A public blockchain is visible to everyone, and while the data is secure, it is not private.
Private Blockchain
The Linux Foundation’s Hyperledger blockchains are a good example for Private Blockchain.
They provide all the features of Public blockchain with the added advantage of being “permissioned.”
This makes them perfect for organizations and enterprises because data can be made available to select participants.
Resilience through Decentralization
- Decentralization is perhaps the most useful feature of blockchain technology for enterprises.
- In a centralized network, all computers are connected to a central server.
- This server has to be functional at all times because all data flows through it.
- In blockchain, all computers (peers) are interconnected and distributed, making this a peer-to-peer network.
- Even if one peer is dysfunctional, the entire network is not affected.
- Moreover, if someone attempts to make any changes to the data, all peers are notified, making the data secure.
Data Immutability
- The Data stored on a blockchain ledger can never be lost.
- When we add new data, it is stored on a new block.
- This new block has the cryptographic hash of the previous block.
- If someone were to make any changes, it will be clearly visible and notified to all peers, eliminating fraud and data tampering.
Privacy & Transparency.
- For an enterprise, the balance between privacy and transparency is crucial.
- Some data might need to be protected (eg. Confidential records), and some might need to be public (eg. Transactions).
- By employing private and public ledgers, a blockchain system would be able to deliver exactly that.
- Protecting the privacy of the participants, while maintaining accountability.
Automation
- One prime feature of blockchain technology is a Smart Contract.
- Smart Contracts are self-executing contracts that automate tasks based on some criteria.
- Tasks such as payroll, scheduled payments, etc., can be faster and more efficient with smart contracts.
- Once a Smart Contract is deployed, it cannot be changed, meaning that no “third-party” can tamper with it.
- This eliminates the need for “trust” in transactions.
In a Nutshell
Blockchain technology opens up a whole world of opportunities for enterprises and organizations.
It combines privacy, confidentiality, resilience, automation, and durability, into a single package.
Using blockchain-based systems, enterprises and businesses can completely transform the way they do business, forever.
