Due to its decentralized nature, blockchain technology has long been seen as a solution to multiple issues. Yet blockchain is more accurately understood as a protocol that facilitates information transmission by connecting various databases and synchronizing records of events over time.
This is similar to using digital ledgers that all parties involved may trust as true and immutable. Blockchain technology has emerged as an exemplary solution for enterprises grappling with myriad data management difficulties. Each blockchain platform presents its tradeoffs and benefits; therefore, choosing an option that best serves an enterprise can be complex.
One essential way of unleashing its full potential lies with an open-source collaborative software development model that ensures transparency, longevity, interoperability, and support for its widespread commercial usage - with its inherent transparency of use as its cornerstone feature.
Types Of Blockchain Networks
Blockchain technology has revolutionized how we view data management and security. Consisting of a distributed ledger that acts as the single source of truth for data security management purposes, its main feature is creating distributed networks that permit multiple parties to access, update, and authenticate each other - though not all networks offer equal results.
Permissionless Blockchains
- Public blockchains (sometimes referred to as trustless blockchains) are decentralized public networks similar to public transportation in a city. Anyone may purchase tickets to ride buses and subways. Similarly, anyone may participate in validating transactions and creating blocks by offering computing power or by staking cryptocurrencies such as Bitcoin and Ethereum—two examples of public, permissionless blockchains.
- One key advantage of permissionless blockchain networks is their transparency and decentralization, ensuring no single entity controls them. Allowing anyone to participate increases security, as this reduces the possibility that one entity controls 51 per cent of computational power—potentially an attack vector—which in turn lowers network risks. Cryptography helps safeguard the network's data storage integrity.
Permissioned Blockchains
We can divide permissioned blockchains into three categories based on the degree of customization and network configuration-
- Private Blockchains: Private blockchains are closed networks restricted by participant eligibility that only permit certain entities to participate. Only specific individuals and groups with official permission can participate, validate transactions, and generate new blocks - much like private transportation systems that only certain people or groups can access, such as chartered buses and trains.
- Companies and organizations generally utilize blockchains, while larger initiatives - like CBDC (Central Bank Digital Currency) systems for country central banks with tokenized deposit infrastructure. Private networks (or "enterprise blockchains") don't open for public participation as public cryptocurrency networks do; therefore, only sure participants control computing power for that group - similar to how CBDC/Tokenized deposit infrastructures work in managing deposits/CCBC.
- Permissioned blockchain networks' primary benefits lie in their capacity to serve as platforms for private transactions and set and control governance and policies centrally from one central location, along with restricted access that ensures increased compliance with regulations.
- Consortium Or Federated Blockchain: A consortium blockchain, often called federated blockchain, is a distributed network administered by several organizations or institutions governed by consensus. As opposed to private blockchains controlled solely by one organization or institution, consortium blockchains are controlled by several preselected organizations or institutions simultaneously similar to how multiple transportation entities administer one transportation network, such as an intercity train service connecting various cities.
- Consortium blockchains offer many benefits for inter-organizational transactions. By pooling resources and expertise, consortiums can form more cost-efficient networks than one organization could accomplish alone.
- Hybrid Or Semi-Private Blockchain: Hybrid blockchain networks, or semi-private chains as they're often called, combine features from both permissioned and permissionless blockchain architectures into one highly customizable distributed network. Members can select which transactions to make public and who may join.
- One key advantage of hybrid blockchain networks is that they provide an efficient platform for both public and private transactions, making the blockchain equivalent to a transportation system that offers regular trains as well as VIP trains for public travel.
Hyperledger Fabric
Overview
Hyperledger is an open-source blockchain framework developed as part of a Linux Foundation initiative. There are multiple frameworks within Hyperledger; among these is Fabric, which offers highly modular permissioned solutions.
A diverse development community comprising over 35 organizations and 200 developers currently maintains the Hyperledger Fabric project; each instance includes P2P network nodes connected by a membership service provider MSP), ordering service (OS), smart contracts/chaincode, ledger, etc.
Privacy And Permissions Features
Fabric is an enterprise blockchain protocol that utilizes channel architecture and data structures to safeguard privacy. Like other enterprise blockchain protocols, Fabric's design relies on specific nodes known as endorsers/committers or "peers" to manage transaction processing computation and state management. At the same time, orderers create consensus by ordering and grouping transactions in blocks.
Use Cases
Hyperledger Fabric is an adaptable blockchain platform that has proven invaluable across various use cases, such as trade finance, supply chain management, insurance, healthcare payments, and digital identity credentials. Some notable use cases are:
- Supply Chain Management: Blockchain food traceability systems have emerged to ensure transparency and tamper-proof data in food supply chains. These systems provide consumers with visibility over where their food originated from, helping ensure food safety and quality for all parties involved in food production and distribution chains.
- B2B Supplier Onboarding: Blockchain solutions have proven their worth as an efficient, safe, and transparent means to onboard new suppliers more securely while improving efficiency and lowering costs.
- Aviation Ecommerce Platform: Hyperledger Fabric is currently being utilized to develop an eCommerce platform designed for the aviation industry, which will create a secure, transparent marketplace where used aircraft parts can be traded safely, thus cutting procurement times significantly.
- Real Estate: A real estate association is utilizing a blockchain platform to offer improved member services and ensure more efficiency and transparency within their market, improving accuracy and security during transactions.
- Global Trade: To maximize global trade efficiency, a consortium of companies is using a blockchain platform built with Hyperledger Fabric to increase international trade efficiency. They hope it can reduce costs, enhance operational efficiencies, and ensure transparency during shipping processes.
Read More: Unlocking The Potential: How Blockchain Technology Will Revolutionize Companies In The Future
Hyperledger Besu
Overview
Hyperledger Besu is an open-source client for Ethereum that enables developers to quickly build smart contracts and decentralized applications on top of the Ethereum network. Its source code is publicly accessible; anyone may contribute, report issues, or suggest new features subject to applicable license terms.
Privacy And Permissions Features
Privacy is at the core of Besu's offerings, and Besu's Private Transaction Manager (PTM) provides essential protection of network privacy. PTM uses encryption technology to encrypt transaction data, ensuring its inaccessibility by third parties, including transaction content, sender details, and parties involved.
Use Cases
Hyperledger Besu is an open platform with no industry limitations; it has already proven successful across industries and use cases, including financial services, supply chain management, digital identity management, and healthcare.
- Hyperledger Besu is developing its blockchain ecosystem to form the world's largest permissioned public blockchain for government use to enhance life quality throughout Latin America and the Caribbean through digital identity, land registry, and supply chain traceability systems.
- Hyperledger Besu provides another example of blockchain application when applied to financial services platforms that democratize financial benefits through features like a stablecoin, decentralized exchange, lending/borrowing platform, and savings account designed specifically for payments and DeFi (Decentralized Finance).
- Hyperledger Besu is used in logistics to develop a blockchain platform for tracking returnable transportation items (RTIs). This enhances efficiency, reduces costs, and provides increased security by keeping an unalterable record of RTI movements.
- Hyperledger Besu blockchain-powered loyalty programs have proven highly successful at improving customer retention in retail businesses. These programs reward shoppers for each purchase with points redeemable for discounts, free products, or travel.
Quorum
Overview
Quorum is an enterprise-grade permissioned blockchain platform designed for enterprise clients that leverages public Ethereum community innovations and proprietary features tailored to suit corporate client's specific requirements.
Privacy And Permissions Features
Regarding privacy, some consortium network participants prefer limiting how much information they share or with whom they transact. Quorum helps facilitate this goal by pairing a PTM with member nodes to maintain anonymity and preserve privacy.
It contains an enclave responsible for cryptographic functions, which is responsible for securely storing encrypted transaction data. This data exchange occurs instead via encrypted payloads being distributed between nodes, which then propagate these transactions securely across the network.
Use Cases
Different industries are turning to Quorum blockchain because of its privacy and permissioning capabilities, showing its versatility in improving effectiveness, security, and automation across a range of sectors:
- JPMC Coin Systems uses Quorum's platform to offer Blockchain Deposit Accounts, while Onyx Digital Assets uses Quorum to tokenize and transfer traditional financial assets.
- Two leading insurance companies have selected Quorum's blockchain technology as part of a move to streamline and expedite auto subrogation claims processing.
- A healthcare blockchain consortium has chosen Quorum as their secure network to share healthcare data securely, improving care quality by giving healthcare providers more comprehensive patient data access.
- Quorum is being investigated for emerging use cases such as digital identity management and is being explored further for future applications, demonstrating its full potential and promising use cases.
Selecting The Right Blockchain Platform For Your Enterprise
A flowchart can assist in this decision-making process by helping enterprises determine the most suitable option based on factors like shared database requirements, desired level of security/privacy preferences, and interoperability concerns. By answering a series of yes/no questions on a flowchart, they can conduct initial assessments before undertaking further investigation to select their ideal blockchain platform solution for specific use cases.
Conclusion
Blockchain technology presents enterprise blockchain solutions with various ways of using distributed ledgers. Permissionless and permissioned blockchains offer flexible options based on requirements and use cases, providing organizations looking for innovative distributed ledger solutions with flexible options when selecting solutions such as Hyperledger Fabric, Besu, and Quorum as enterprise-grade platforms with unique features to suit specific business requirements.
