Business networks today are often inefficient because each participant in the network keeps records, or a ledger, of all transactions between all the parties that the business interacts with. This process is expensive because of duplication of effort and intermediaries adding costs for their services.
One solution to this problem is blockchain, which provides a shared ledger technology that allows any participant in the network to see the one system of record, or ledger. By using blockchain technology, businesses can benefit from a more efficient transfer of goods and services.
Blockchain is not Bitcoin
Often times, it is heard that
Bitcoin = Blockchain, however, this is not true. Bitcoin is an unregulated, censorship-resistant shadow currency. It is basically the first blockchain application or the pioneer of blockchain technology.
Blockchain for business has several advantages:
- Saves time
- Removes cost
- Reduces risk
- Increases trust
For example, for financial services network, a business network that runs on a blockchain can speed up transaction processes and audits. That in turn reduces costs and can lead to greater customer satisfaction. A business that runs a supply chain network can benefit from blockchain by reducing errors in shipments, have better tracking or materials, and reduce the risk of illicit tampering of records.
Why businesses need to use a blockchain?
Blockchain increases the speed of transactions, slash auditing costs, reduces risk of cyberattacks, and increases trust.
A traditional, or nonblockchain, network is more vulnerable to tampering. Main components of a blockchain network reduces this risks are:
- Chain Code
- Distributed Ledgers
Characteristics of Blockchain
Consensus: It implies that all relevant parties agree that the information contained in the ledger about the business network is true
Provenance: It implies that the ledger contains all the relevant information, starting from the beginning of relationship within the business network.
Immutability: It implies that once the transaction has occurred within the business network and the record book (ledger) has registered it, it cannot be changed.
Finality: It implies about the guarantee that the transaction history within the business network will never be changed.
What is the easiest way to start with blockchain?
One suggestion for those looking to adopt blockchain is to start with a simple first use case. Business owners need to start small and then look for more ways to grow and expand the use of blockchain networks.
What is Hyperledger Composer from The Linux Foundation
Provides a high-level, brief overview of Hyperledger Composer and how it’s a faster, easier way to build networks rather than build with chaincode in the Go programming language.
Transfer assets in a business blockchain
Transferring assets is the heart of blockchain. How can people buy and sell or transfer goods in a business network without any central governing body or policy?