- Issues with Public Blockchains
Issues with Public Blockchains
There are many reasons for which public blockchains cannot be used by Businesses. Issues related to privacy, lack of governance, scalability, storage, the immutability of smart contracts, and unsustainable consensus algorithm has prevented businesses from adopting public blockchains.
For a business to implement a blockchain network, it should be able to fulfill specific requirements.
- Businesses require a blockchain in which they are in control and could regulate upon who joins the network, they should be able to confirm the identity of a new user joining the blockchain with their ‘identity management system’.
- The blockchain should be able to provide scalability and fast transaction execution.
- To protect sensitive information, businesses should be capable to implement access control rules.
- High resilience should be provided by the network.
- Automated troubleshooting.
- Business workflow should be accounted for by the consensus mechanism, where the roles of the approver, record-keeper, and requestor are separated.
- The blockchain should be able to provide practical governance to develop appropriate tools and processes for long-term effective operations.
The blockchain that was capable to address the issues of the businesses and meet their requirement is Hyperledger fabric.
Hyperledger Fabric is a blockchain platform that is used to develop enterprise blockchains. It is a project developed by the Hyperledger Consortium.
Several top companies are members of this foundation, which was founded in 2016, and is headed by Linux Foundation. Some of the members are American Express, IBM, SAP, CISCO, Daimler, and Intel.
The objectives of Hyperledger Consortium are:
- To develop an open-source enterprise-scale blockchain framework with codebases
- To implement technical and business governance models to oversee the blockchain framework.
- Technical communities to be organized for trials and use cases.
- Enterprise blockchain ecosystem to be advertised, and spread awareness among the communities.
Hyperledger Fabric also known as ‘Fabric’ is an open-source framework to implement permissioned blockchains. The initial version of the fabric was developed by IBM and Digital Asset.
The features offered by Fabric are:
- The ability of plug-n-play so that components like membership services and consensus algorithm can be integrated.
- ‘Chaincodes’ which are smart contracts are implemented using container technology.
- For confidential transactions, channel technology is implemented.
- CouchDB, database services are offered.
- For transaction validation, an endorsement policy is implemented.
- Ordering services, so that the transactions can be delivered to peers, meaning, a group of nodes who will be responsible for committing the transactions in the ledger.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.
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