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The Ultimate Guide to a Private Blockchain Implementation for Enterprises
With an ever-expanding digital world, new avenues are opening up for businesses to adapt to. ‘Blockchain’ has become much more of a buzzword in the past few years, and for a good reason. As blockchains rise in popularity, so do their applications. The belief in blockchain technology is practically ubiquitous now, given that people are buying up land in virtual worlds. However, private blockchains are often mistaken for permissioned blockchain, which generates a lot of confusion amongst non-technical folks. ‘Permissioned’ is associated with access control, while privacy implies anonymity of transactional data. However, with the swift progress in the development of the Web3 ecosystem, it is clear that private, permissioned blockchains can generate a ton of value for the enterprise and help secure its digital assets. With this detailed guide, learn how to utilize blockchain networks privately and publicly to generate long-term results for your company!
What is a private blockchain?
A private blockchain is a permissioned, centralized system where a trusted intermediary controls access to the blockchain. The trusted intermediary might also reserve the right to determine the kind of access rights each participant in the system possesses. For example, some participants might be restricted to a view-only view of the blockchain ledger, while others might be permitted to record new data on the blockchain. The nodes are run by the trusted intermediary, which implies that they will be responsible for validating transactions. The concept of blockchains has created an interest in many companies to start using it in their operations, but some companies are still skeptical about the risks of this technology. Private blockchains are more secure because they require permission to be allowed in. As a result, private blockchains are only accessible to their employees, and no one outside the organization can access them. Therefore, you must look at your organization's needs and determine whether such a solution would be a good fit for you.
Benefits of a private blockchain
Blockchain technology is gaining momentum in the enterprise world, and private blockchains offer some key benefits over public blockchains. These benefits come from keeping data private and securing smart contracts. A private blockchain lets companies restrict who has access to the data. This enables the company to control the shared information without sacrificing any of the security or reliability of the information itself. In addition, organizations can reduce banking and audit costs by eliminating the intermediaries involved in the business processes. Here are some of the benefits associated with a private blockchain implementation:
- They do not consume energy in an imprudent way, given that they use a multi-party system blockchain instead of a proof-of-work algorithm. It is imperative to address the sustainability concerns that arose due to the data obtained from bitcoin miners.
- Private and permissioned blockchains are generally lighter than public blockchains, and thus, they can act faster given the small number of transactions compared to public blockchains.
- They do not consume energy in an imprudent way, given that they use a multi-party system blockchain instead of a proof-of-work algorithm. It is imperative to address .
- It is effortless to perform a hard fork given that there is no need for community approval, unlike public blockchains. Hard forks can even be performed by a system administrator.
- With the increased prevalence of scams in cryptocurrencies, it is essential to acknowledge that the consensus in private blockchains is not necessarily ruled by financial interest. The consensus mechanism used is that of cryptographic multi-signatures.
- Private blockchains can help organizations promote transaction privacy and data integrity.
Applications of Private Blockchains
Applications of private blockchains are primarily used to protect data from being tampered with. The data is hashed, inputted into the blockchain, and the hash is encrypted. The hash-encrypted information is then stored on a private server which makes it impossible to be changed or manipulated in any way by someone who doesn’t have access to it. Blockchain adoption is currently at the center of web 3.0. With benefits like decentralization of business operations and increased data security, more organizations will inevitably try to go down this route in the future. Some applications of private blockchains are:
- Retail: With tokenization and NFTs, reward programs can be disrupted with an entirely different model. Theft protection measures can be improved leaps and bounds, and counterfeit products can be rejected, resulting in cost savings for the organization.
- Banking and financial services: Cross-border transactions can be made a breeze with the help of blockchain technology. With the implementation of smart contracts, loan disbursement and repayment can be made incrementally more efficient.
- Healthcare and Pharma: The epidemic of counterfeit engulfing the pharmaceutical industry can be tackled effectively with the help of blockchains. Regulators can streamline the process of credentialing physicians for better regulation. Blockchain can also help in keeping critical patient information secure.
A Comparison Between Public and Private Blockchain Solutions
Public blockchains are permissionless, open-source platforms that allow for the decentralization of information. The records made on the blockchain are transparent and available to view to anyone at any time. A significant distinction between public and private blockchain solutions is who controls the information. Public blockchain solutions rely on a peer-to-peer architecture with a distributed network of miners who validate transactions. On the other hand, private blockchains restrict access to the network to specific individuals after verifying credentials. They have some things in common, which are immutability and peer-to-peer ledger capabilities. The major differences between them are the levels of access that grant different participants the right to make transactions on the blockchain. Private blockchains also centralize the control, while blockchains are generally famous for decentralized applications.
Enterprise Grade Blockchain Platforms
Several blockchain platforms allow for the development of private, permissioned blockchain networks. They provide end-to-end cloud-based solutions that can help create a tailor-made private blockchain solution exclusively for your use case. Here are the top blockchain platforms that can help provide seamless blockchain deployment options for your business:
- Bloq
- Blockstream
- Amazon Managed Blockchain(AWS)
- Quorum
- LeewayHertz
- PayStand
How Atidan Technologies can help you integrate Private Blockchain solutions into your business
Atidan specializes in creating customized strategies for blockchain adoption while taking account of your existing codebases. Atidan has a ton of experience in going hand-in-hand with organizations to develop customized products that implement blockchain to create more intelligent enterprises. With access to the largest talent pool in the world with a proven track record of customer satisfaction, Atidan can help you develop a rock-solid approach to ensure seamless integration. With access to Atidan’s highly experienced recruiters, you can even hire talented blockchain developers for your business. With decades of experience helping companies with their technological needs, Atidan delivers more value than you could imagine. With global offices in the USA, UK, India, SEA, and success stories across various industries, our goal is to help you realize the full potential of today's cutting-edge technologies.
