Regardless of your engagement with technological advancements, it's highly unlikely that in the past decade, you haven't heard of blockchain. Due to its growing adoption, this technology has become a centre of attention. The reasons for this popularity include the convenience, security, and scalability that this type of network offers. Many companies, beyond the initial sector that blockchain serves, have started to recognise its potential and benefit from it.
That is how enterprise private blockchain came to be. A new variation of the popular technology that can provide companies with unmatched advantages.
It's possible that those unfamiliar with the specifics of the technology are wondering what this means. While this type of blockchain has been around for a while now, it's yet to grow into full maturity and be utilised everywhere. Here we'll discuss what it is, why is it useful, and whether can it be the right solution for your business needs.
Before Enterprise Private Blockchain – What Is Blockchain?
Prior to venturing into enterprise private blockchain specifics, we will cover what blockchain technology is, given that some people really aren’t familiar with it.
Towards the end of the last century, the first prototype of blockchain technology was created by Stuart Haber and W. Scott Stornetta. They created a system in which document timestamps can't be tampered with and allows for the collection of several document certificates to be collected into one block. Since 1995, this system has been in use by The New York Times weekly.
It took a few decades before the technology was introduced in the form that is known today. In 2009 someone under the pseudonym Satoshi Nakamoto used a similar approach and through cryptographic hashes introduced a network called a blockchain. While it was outshined by what was on that network – Bitcoin, the first cryptocurrency, blockchain started soon gaining its deserved attention.
The technology introduced by Nakamoto represents a form of a distributed ledger on which the list of records, called blocks, is linked by cryptographic hashes. Every block contains information about the previous one and in order to edit one, an individual would have to affect the whole chain. What makes this technology decentralized, a term it's very popular with, is the fact that not one, but many figures oversee the operations on it.
That's the reason why the first, and still one of the most popular, type of blockchain is called "public". Computers from all over the world are involved in overseeing the proper functioning of these blockchains. The information on it is also for everyone on the Internet to see – everything recorded is forever online.
All of this ensures the technology is transparent, secure, and accessible to everyone. These benefits were the reason why blockchain grew in popularity and expanded to various forms, including enterprise private blockchain.
What Is Enterprise Private Blockchain?
The term enterprise private blockchain can also be seen as simply "enterprise blockchain" or "private blockchain". All three refer to a type of blockchain where a single entity oversees who can access the network and what type of data is available to them.
Isn't this against the point of blockchain? Not quite. This altered version of the technology still remains very secure just like its predecessor. However, the added main figure is required because it's used within companies to store information or facilitate other processes. This means that authority must say "yes" or "no" to different actions.
Another reason why enterprise blockchains need certain restrictions is that they need to provide different access levels to information to employees. This way the blockchains within companies offer information transparency within the organisations but maintain security and simultaneously support various levels of access and editorial rights.
Instead of traditional databases, enterprises and companies of different sizes can benefit from the advanced features of this technology. Blockchain allows companies to store their internal and clients' data more securely, to connect with others via blockchain in a prompt manner, and to benefit from encryption. That's why enterprise blockchain is being adopted by more and more businesses that want to advance technologically and move forward with digital transformation.
Key Differences Between Public vs Enterprise Private Blockchain
If we should summarise the differences between public and enterprise private blockchain, it will go as the following.
One of the most common uses of public blockchains is for cryptocurrency projects or other applications in decentralized finances. There, a large number of individuals follow every transaction and validate that everything has been done correctly. The reason for this is to allow maximum transparency for users, providing them with all the information of events on the blockchain online.
Enterprise private blockchains, as the name suggests, are usually used in big companies and businesses. They can be utilized for different purposes, but the main notable thing about them is that a single authority has more rights than the rest of the users. Often times a notary may even have the last word in order to ensure the legitimacy of all processes. Companies use this type of blockchain to take advantage of its valuable features while sustaining a higher level of in-house security.
In short, both types of blockchains have similar functions, including enhanced security of information in terms of modification, fast transactions, and encryption. They are just two variations of the same cryptographic distributed ledger, utilized for different purposes, and thus modified to fit each better.
What Companies Can Use Enterprise Private Blockchain?
Companies across many sectors can use enterprise private blockchain.
One of the most apparent uses of the technology for companies in all fields is as a reliable database. By now most businesses have completely digitalised their information records and rely less on paper storage for apparent reasons – convenience, ease of access, reliable backup. Enterprise blockchain can offer all of that and more, considering how information on it can't be easily edited. This allows companies to safely store even the most sensitive information, including personal data or patient records.
Enterprise blockchain is more than suitable for companies within the financial services and banking sectors. The technology was introduced as a network to facilitate and record financial transactions of digital currencies. Even though its uses expanded beyond that, blockchain remains highly beneficial for financial operations.
The acceptance of the technology in the banking and financial sector is supposed to grow by over 50% from now until 2027, due to the rapid adoption by companies. This means that the global market of blockchain in financial and banking services, which was priced at $1.89 billion in 2022, will rise to over $19 billion five years later.
The positive forecast illustrates the fact that conventional companies, using fiat money, recognise that enterprise blockchain can be just as useful for their financial transactions, as it is for cryptocurrencies. Such businesses can benefit from easier traceability of transactions, faster processes, and removed limitations. The last refers to the fact that, unlike traditional banking, blockchain isn't limited to a country but instead can easily be between companies around the world at profitable fees.
Companies that deal with goods of some sort can also utilize enterprise private blockchain to have an innovative tracking system. The technology is also suitable for storing intellectual property rights for artists and ownership of physical or digital objects.
Is It Worth Getting an Enterprise Private Blockchain for Your Company?
As proven by the observed information, big companies within diverse fields can benefit from implementing enterprise private blockchain within their systems. If you're wondering whether this applies to your business, the answer is likely "yes".
In order to make this crucial decision for your enterprise, you may require expert consultation. INDUSTRIA offers end-to-end blockchain consulting and advisory for businesses. After that, you can benefit from the company's blockchain rapid prototype development and blockchain and DLT development.
INDUSTRIA have provided many enterprises with reliable blockchain services. What the company can do for your business is evaluate your specific needs and goals, and deliver a highly functional blockchain for your enterprise with flexible UX design. Through Corda, one of the most popular open-source blockchain platforms, INDUSTRIA can modernise the services of any company that wishes to venture into the technology and its many features. Clients can also benefit from INDUSTRIA's other services related to smart contracts, application development, and user experience design, receiving full-scope attendance for all business needs.
Taking advantage from specialised consultations can give you the most reliable answer as to if you should build an enterprise blockchain for your company. The advantages of this technology are many, but relying on professionals to offer you fact-based solutions, would be the best choice for your business.
Will All Companies Switch to Enterprise Private Blockchain?
Learning what is an enterprise private blockchain, how it differs from public ones, and which businesses it serves, serves as a crucial turning point for any company's owner or proactive worker.
We've mentioned several of the benefits of blockchain and the adapted version for enterprises. The interest in this technology continues to grow, showcasing that companies too recognise the positive impact they can experience if they modernise their methods through it.
While time will tell if all enterprises will eventually switch to a private blockchain, one thing is certain – the ones that do, also join a technological revolution. The speed, security, and transparency of blockchain can contribute to the improvement of services for companies and their relationship with clients.
What business wouldn't want to deliver high-quality end results and ensure long-lasting partnerships? Seeing that implementing an enterprise blockchain is one of the factors that can facilitate this possible change, it's very likely that companies will jump on it. If you're interested as well, you can get in touch with INDUSTRIA on how your enterprise can receive its own blockchain network and start using it very soon.
INDUSTRIA is a global technology consulting, development, and ventures company with expertise in the field of enterprise blockchain, confidential computing, process automation, and digital experience. As one of the official partners of R3, we are implementing cutting-edge blockchain technologies and reshaping the fintech world. At INDUSTRIA, we are focused on providing permissioned blockchain solutions, such as Central Bank Digital Currencies, Electronic Bill of Lading, and Smart Contracts. Our solutions apply to a wide range of industries and use cases to empower and modernise society.
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