Private Blockchains for businesses
- A blockchain run by a Consortium of institutions is considered as a private blockchain, where each party or institution doesn’t entirely trust each other
- Health care and insurance industry
- Consortiums of organizations and Identity management
What is Blockchain Technology
- Made up by computing “nodes”
- Incorruptible digital ledger of transactions shared by participant nodes
- Stores information in a distributed and decentralized way
- it provides immutable record keeping
Blockchain Security and Privacy
- There are no centralized points of vulnerability
- Data is not being held centrally
- Every participant user has a key-pair, a private and a public key, that defines its identity
- User to user transaction become possible, without the intervention of a central
- There are currently many public blockchains that support crypto-currencies like Bitcoin or Ethereum
- The information stored in the blockchain can neither be erased or changed
- Legal documents and certificates
Network of computing nodes
- Every blockchain consists of computing nodes that jointly manage a decentralized database of transactions
- Every node connected to the blockchain network validates and relays transactions
Benefits of running a private blockchain
- "Private" blockchain doesn’t mean exclusively internal to an organization, or completely isolated from the public
- The participating companies or organizations provide own validating computing nodes
Central, trusted authority model
Currently, we need trusted central authorities to verify the existence of digital transactions, validate them, and keep them secure, safeguarded and private.
- Our ISP tells us that our e-mail has been delivered.
- Our Bank is telling us that it has effectively transferred the money we wanted to.
- Our browser tells us that a website is really the site we meant to visit, and it is protected by a valid certificate.
Blockchain in bitcoin
Bitcoin participants are anonymous, everyone can join and view any past transaction, the only Asset is the shadow-currency, the only transaction is money-transfer, heavy cryptography is required for consensus … unuseful for regulated industries
The business logic of the B4BN is embedded into Smart Contracts, coded as shared business processes. Smart contracts are automatically executed, when conditions are met. Example in the car industry: when a faulty part is discovered, it enters the blockchain and a smart contract executes notifying all car owners affected. Technically, a smart contact is code stored in the blockchain, that executes as a result of some blockchain transactions, and the execution consists of reading-writing data in the blockchain
INFRASTRUCTURE AND TECHNOLOGY