Perhaps, you overheard and sight an endless amount of advertisements around blockchain and its technology behind the bitcoin cryptocurrency. But - does this technology should be kept on your radar?
Emphatically, the answer is “yes.” Because the technology is rapidly advancing and offering innovative methods of implementing transparent transaction environments that can be - shared, replicated and permissioned. However, the advantages united in blockchain are numerous, such as save time, reduce high costs, shrink risk and increase trust.
Eventually, make sure not to define blockchain, as a technology knotted to only bitcoin or any other cryptocurrency. It is however, a platform that require permission access to view your private transactions. Alongside, security-rich settlement of digital records, regarding anything in real time.
Fundamentally, blockchain is considered as a distributed database that serves as an inventive platform to generate an enterprise-quality business transaction network. Through Blockchain, executive can take a great control over the transaction they have made while maintaining the privacy of terms and conditions between parties. This means dependable transactions become possible for enterprises, eliminating the interference of centralized certifying authority.
How it value your business? By allowing your business transactions to be processed cost-effectively. In addition, offering a way to completely innovate. Heretofore, organizations have started building applications for blockchain implementation.
Everledger is a beautiful example, build a blockchain that documents the properties of diamonds through an immutable digital ledger. Blockchain contribution towards digital incarnation of a physical asset such as a diamond - via metadata to produce an inimitable thumbprint for each asset. Thumbprint thus acts as a permanent record that covers the asset all over the transaction’s lifecycle. Through implementation, Everledger ensures the ethical trade of diamonds, preventing fraud and theft.
The entire blockchain concept isn`t really difficult to understand. There are three basic concepts included: Business Network, Asset, and Ledger – you should know.
Business networks - we already know the concept. By forming a complex supply chain of an interconnected network, no doubt your business thrives. Banks, distributors, inspectors, insurers, manufacturers, suppliers and other participants are all involved in numerous interrelated processes. In order to radically decrease the friction while upsurge participants transparency and efficiency, Blockchain offers a great opportunity. Also, it enables collaboration between parties.
Anything that produces value by owning or controlling are known as assets. Usually, assets are physical, but sometimes they come in less physical form - loans, reports and insurance policies are some examples. In order to keep such assets on a digital ledger, they have to go through a digitization process.
Again considering Everledger`s blockchain as an example which is using 40 metadata points in order to build digital thumbprint for each diamond. As soon as an asset is digitized, it’s all set for blockchain. “Leanne Kemp, CEO of Everledger said,” Everledger included industry certification (4Cs — cut, clarity, carat, and color) to increase Metadata by 40+ pieces, alongside high-res photography. Further, it is linked to the laser inscription originates on the girdle of the stone. Kemp also shared that we proceed all this information and put it into the blockchain to create a permanent digital thumbprint of the diamond.
Now, comes the ledger which acts as a record system in each organization and simultaneously allowing participants to coordinate and encrypt transactions. Nowadays, transactions in a lot of industries are administrated by multiparty contracts in order to dictate relationships and obligations among participants. Electronic ledger enables each user to immediately reconcile its view of the truth with others - as transactions flow.
With the intention of implementing blockchain transactions in an enterprise-scale environment, IBM joined other companies in 2015, to reimagine blockchain for business. They co-founded an open community Hyperledger. Linux Foundation used to manage with an authority model to effectively define blockchain for enterprise software that business cares about. Hyperledger Fabric™ - an IBM contributed code that was recently released in Version 1.0 (beta) and ready for production workloads.
Hyperledger Fabric encodes transactions and contracts while making them instantaneously accessible to permissioned participants. Within the network, each organization can represent its identity through a cryptographic membership card. The transactions and contracts of organization on the ledger required permission access for showing. At potentially sub-second speeds, transactions can take place across geographical and regulatory boundaries. This can be translated into time and cost savings.
Underpinned by IBM LinuxONE, IBM’s High-Security Business Network provides a secure blockchain collaboration, protecting data from outsiders while guarding insider threats. In contrast to traditional transaction securing methods, implanted security within the LinuxONE platform care for a blockchain transaction wherever it takes place. Most importantly, It scalability allows it to fit across industries and into the cloud. The chain of blockchain advantages are not yet brocket, although it’s a transformative technology, and will keep on innovating with a straight-line to business concerns and outcomes.