Blockchain Adoption By Businesses And How You Can Get New Value From Its ImplementationBlockchain tech is poised to transform the nature of transactions and trade across the world. It sol...
Blockchain tech is poised to transform the nature of transactions and trade across the world. It solves the problem of double-spend with the help of public and private keys. Public key is shared with all other network participants while the private key is assigned to each individual participant. Each transaction is verified by the consensus of a majority of participants, making fraudulent transactions unable to bypass the collective verification. Blockchain enables the implementation of smart contracts, the programs that are self-executed when certain conditions are met. Once a record is created and accepted by the blockchain, it can never be altered.
Blockchain provides organizations with instant audibility, trust, smart contract, security and transparency to revamp their operations and digitize their operations. The technology components underlying the blockchain system include trustless computing, smart contracts and network security. With the introduction of smart contracts, an organization can be autonomous, based on the auto-execution of codes as participants need not worry about the trust issue. These features are in-built on the network security itself. Once data is sealed within a block, it cannot be changed retroactively. This not only includes financial information but anything of value.
Shifting from centralized to decentralized internet
While cryptographic technologies underpinning blockchain have been for sometime, their combination is truly innovative with wide-ranging implications. Combined with an economic incentive framework, also known as census mechanism, blockchain allows for peer-to-peer validation of transactions without the need of a trusted centralized intermediary to verify the transactions. The shift from centralized to decentralized internet without a third-party intermediary reduces transaction cost and time.
Federated, permissioned and permissonless blockchains
Federated blockchain is one of the best blockchain trends in the industry which is an upgraded form of the basic blockchain model. It is quite similar to a private blockchain with a few added features. Unlike private blockchain which is controlled by one organization, a federated blockchain has multiple controlling authorities who validate the block in order to process the transaction. Permissionless blockchains are based on open protocols, such as Bitcoin and Ethereum, that allow anyone to connect with any other network participant. Permissioned blockchains are primarily used for enterprise solutions.
Hyperledger open source community
Hyperledger is an open source community with a suite of stable frameworks, tools and libraries for enterprise-grade blockchain deployments. It serves as a neutral home for a variety of distributed ledger frameworks including Sawtooth, Indy, Hyperledger Fabric, libraries in Hyperledger Ursa, and Hyperledger Caliper. Hyperledger Fabric is being used by enterprises for developing solutions with modular architecture. It allows blockchain components, such as consensus and membership services, to be plug-and-play. Its versatile design offers a unique approach to the consensus that enables performance at scale while preserving the privacy of the users.
Interoperability of blockchain
Interoperability of blockchain provides the users with the ability to share data and other information across multiple blockchain systems as well as networks. For example, users can send data from one EOS blockchain to another specific Ethereum blockchain. This function enhances multi-token transactions, and also offers a range of diverse functionalities including cross-chain transactions.
Recardian Contract and Non-Fungible Tokens (NFTs)
Recardian Contract is a human-readable legal agreement that is also agreed and signed upon by both the parties involved in the contract. Therefore, it gets converted into a machine-readable contract with intentions of the parties clearly defined. Recardian Contract is essentially a smart contract which is both machine and human-readable. Non-Fungible Tokens (NFTs) are quickly gaining popularity across digital asset exchanges, gaming community and blockchain platforms. A single copy of the unique digital asset can be stored within NFTs and can’t be replicated. NFTs are used by digital art projects and startups to establish themselves online. Digital rights management is another area where NFTs can be used while game assets can be digitized and exchanged using NFTs.
Another emerging concept in blockchain domain is Hybrid Blockchain. It operates in a cloud-based ecosystem that uses the most appropriate parts of the pubic as well as private blockchain solutions, making every piece of the information on the network secure.
Groundbreaking solutions to product provenance
Blockchain technology provides the groundbreaking solution to product provenance in supply chain management with shared, consensus-based ledger to track the origin and processes of supply chain. Other application areas for blockchain use include digital right ownership management and notary services. The combination of digital locks and smart contracts in blockchain-based transactions will enable renting hotel rooms without human intervention. With the successful application of ready-made blockchain solutions, retail chains will be able to include them in their delivery processes, increasing customer confidence while at the same time reducing associated costs of the current inefficient accounting systems.
Implementation of blockchain in social media
Implementation of blockchain in social media will ensure that all the published data remains untraceable, and cannot be duplicated, even after its deletion. It will ensure that the power of content relevance lies with its creator, instead of the platform owner, thus making social media users feel more secure about their personal conversations. Video, music and social media streaming companies can use blockchain technology to enable third parties to not only read but even write information on the respective blockchain.
Another emerging blockchain trend is BaaS or Blockchain as a Service. This cloud-based service enables users to develop their own digital products and applications that can work without any setup requirements of a complete blockchain-based infrastructure. Microsoft and Amazon are already developing blockchain-based BaaS services.