Private blockchains, or blockchains with access control, work similarly to public ones, but not everyone can join the network here. Such systems are more like the centralized databases we are used to. In private blockchains, the network is usually operated by one or more centers, which means that transactions are carried out with the help of third parties. A famous example is Hyperledger.
Traditional banking systems are quite slow. Sometimes it may take several days for a transaction to be processed after all settlements are completed. They can also be damaged quite easily. Blockchain offers faster settlement compared to traditional banking systems. Thus, the user can transfer money relatively faster, which saves a lot of time in the long run.
Every blockchain thrives on consensus algorithms. The architecture is intelligently designed and consensus algorithms are at the heart of this architecture. Each blockchain has a consensus to help the network make decisions.
Usually, the public ledger provides all the information about the transaction and the participant. Everything is open, nowhere to hide. When it comes to private or federated blockchain, things are a little different. But, nevertheless, in these cases, many people can see what is really going on in the ledger.
Since there is no need for central authorities, no one can simply change any characteristics of the network in their favor. The use of encryption provides another layer of security for the system.
Combined with decentralization, cryptography provides users with another layer of protection. Cryptography is a fairly complex mathematical algorithm that acts as a firewall against attacks.
The network is decentralized, which means it doesn't have any governing body or one person overseeing everything. Rather, a group of nodes maintains the network by making it decentralized.
This is one of the key features of blockchain technology that works great. Blockchain puts us in a clear position. Since the system does not require any governing bodies, we can access it directly from the Internet and store our assets in it.
There are several exciting features of blockchain, but among them is "immutability" which is undoubtedly one of the key features of blockchain technology. Blockchain technology works a little differently than a typical banking system. Instead of relying on centralized governance, it provides blockchain functionality through a series of nodes.
Any data recorded on the private blockchain is never published. You control who has access to the data and who can overwrite it. Controlled access rights and a private network protect your data.
Complete control over the number of nodes gives you unlimited scalability. Additional nodes can easily be provisioned when a large number of transactions are expected. Manage the number of nodes on your network and simplify processing.
In a private blockchain network, you can distribute nodes locally to reduce latency and improve performance. Dedicated nodes provide enough capacity to meet the processing needs of your blockchain network.
All file access rights and other rights in the private blockchain network are completely under your control. Determine who can run the node or read data from the blockchain to meet all of your business needs.
The advantages mentioned make it clear that a blockchain can be used in many business models. The technology can help overcome existing challenges and reduce costs within-individual processes.
One of the best-known examples of the use of a blockchain is financial transactions. Above all, the cryptocurrencies mentioned at the beginning illustrate how technology can be used in the financial world. In the course of a blockchain, individual transactions are verified and distributed to the so-called nodes. This results in a high level of data consistency and an exceptionally high level of transparency. These properties are the basis for banking transactions.
This principle opens up interesting application possibilities for international payments. Since verification takes place within the network, intermediaries can be excluded, and transaction costs are reduced. The lack of intermediaries also ensures a higher transaction speed.
In the healthcare sector, too, it has been shown that the blockchain can certainly offer advantages. A blockchain can be configured so that only selected users have access to the stored data. Nevertheless, the data can be stored in the distributed network so that the sensitive data can be stored here. In particular, personal documents such as patient files, medical reports, and the course of illness can be saved on a blockchain. Access to this data is only granted to selected users who have previously been activated by the data owner.
Verifying a person's identity is a challenge in selected business areas. With the help of blockchain technology, however, people's identities can be identified more securely and more quickly than before. The basis for this is extensive databases that enable identification and verification. Above all, existing identification documents - driver's licenses, passports, and ID cards - could thus be digitally implemented securely. A manipulation would also be almost impossible. Loss of data would also be prevented because the data is stored decentrally.
To date, money laundering is a major problem. The blockchain can be used to eliminate this problem by transparently storing all concluded contracts on a blockchain. Through recordings, the individual transactions can also be assigned to the respective participants, and thus money laundering can be avoided.
We can offer you tailor-made solutions whatever your relationship with Blockchain or your level of knowledge. We have been understanding the particularities of this emerging technology for several years and we have explored the real applications of Blockchain for business, what its impact is and the opportunities that can be created. As a result, whatever your relationship with Blockchain and your knowledge, we can offer you a solution.