What is Blockchain?

Blockchain is a DTL (decentralized distributed ledger) that enables smooth transaction recording processes of private and business data. The blockchain technology ensures all-out transparency of data assets while keeping them permanent and verifiable along the entire chain by means of secure cryptography algorithms with unique code hashing. Designed initially for serving as a cryptocurrency ledger technology like bitcoin, the blockchain has gone way further beyond digital crypto tokens. For now, advanced blockchain-based solutions are used wherever there is a need for keeping corporate datasets clear, consistent, and safeguarded throughout business pipelines.

Security Level: Blockchain Solutions Vs. Conventional IT Solutions

More secure

64%

Same level of security

31%

Less secure

Not sure

Deloitte’s 2020 Global Blockchain Survey

Blockchain history: Sneak peek

The term blockchain gained traction in 2016. It was inspired by the earlier works of Satoshi Nakamoto, which is presumably a generic name for a group of bitcoin developers. The idea of keeping blocks of data unchangeable and invulnerable via strong chain verification has gained positive feedback from the global economy. Introducing smart contracts was the next step in blockchain technology development. Smart contract management enabled businesses to streamline their workflow processes through a line of event-triggered activities supervised by blockchain. Today, blockchain technology evolves into holistic open-source projects while improving its efficiency and advantages for business through collaborative development and new 2020 tech advancements. One of the most stable enterprise-grade blockchain frameworks is Hyperladger Fabric, the potential of which is leveraged across HebronSoft blockchain-driven solutions.

How Blockchain works

The blockchain technology comprises blocks, which are the chunks of data that make up a single chain when joined together. There are some prerequisites, however, for a new data block to become a part of the decentralized blockchain.

New transaction has taken place

To be included into the blockchain, some new transactions should happen and be recorded for further network submission.

Verification of transaction data

Once the transaction has occurred, it takes a distributed P2P (peer-to-peer) network to validate and confirm the relevance of new data via consensus rules.

New block hashing

When the data is proved valid, it acquires a hash, its unique cryptographic code, along with the hash of the previous block.

Adding the block to the blockchain

Once hashed, the block is added to the most recent one to form an immutable integral chain of blocks known as the blockchain.

New transaction has taken place

To be included into the blockchain, some new transactions should happen and be recorded for further network submission.

New block hashing

When the data is proved valid, it acquires a hash, its unique cryptographic code, along with the hash of the previous block.

Verification of transaction data

Once the transaction has occurred, it takes a distributed P2P (peer-to-peer) network to validate and confirm the relevance of new data via consensus rules.

Adding the block to the blockchain

Once hashed, the block is added to the most recent one to form an immutable integral chain of blocks known as the blockchain.

Types of Blockchain

As the blockchain technology gains momentum, lots of blockchain variations have appeared so far. Based primarily on the difference between their governance models, there are four main types of blockchain: public, private, hybrid, and consortium.

Public blockchain

A type of permissionless blockchain allowing every user to partake in the consensus protocol and validate new blocks of transactions. So, the public blockchains are:

Open source
Transparent
Highly decentralized
Censorship resistant
Assets are tokenized

Private blockchain

Private blockchains are run wherever the privacy of data matters. Usually deployed across enterprises, private blockchains ensure the sharing and keeping of business assets without any data exposure to the public. A bevy of private blockchain features:

Permissioned (only some nodes are authorized)
Governed by blockchain owners only
More secured, albeit less transparent
High transactions throughput
Tokenization is not necessarily

Consortium blockchain

A consortium is much like a traditional private blockchain, except it is governed by a group of business entities. Some open-source modular blockchain frameworks, like Hyperledger Fabric, provide businesses with a robust platform for creating consortium blockchains of their own. As a new blockchain type, consortium blockchains enjoy a range of competitive advantages:

Low latency and high transaction speed
More trusted consensus
Semi-decentralized
Collaborative model
Only stakeholders can confirm new blocks

Consortium blockchain

Low latency and high transaction speed
More trusted consensus
Semi-decentralized
Collaborative model
Only stakeholders can confirm new blocks

Public blockchain

A type of permissionless blockchain allowing every user to partake in the consensus protocol and validate new blocks of transactions. So, the public blockchains are:

Open source
Transparent
Highly decentralized
Censorship resistant
Assets are tokenized

Consortium blockchain

Low latency and high transaction speed
More trusted consensus
Semi-decentralized
Collaborative model
Only stakeholders can confirm new blocks

Private blockchain

Permissioned (only some nodes are authorized)
Governed by blockchain owners only
More secured, albeit less transparent
High transactions throughput
Tokenization is not necessarily

Consortium blockchain

Low latency and high transaction speed
More trusted consensus
Semi-decentralized
Collaborative model
Only stakeholders can confirm new blocks

What industries can capitalize on Blockchain?

Nearly every single industry can leverage the solutions driven by the blockchain technology. The main areas where the blockchain provides a game-changing disruption are:

Transport & Logistics
FinTech
HealthTech
EdTech
FunTech & Media
Cybersecurity
Supply Chain, Logistics & Procurement
eCommerce & Marketplaces
Real Estate
IoT Product Development
Cloud Computing & Storage

Blockchain: Enterprise use cases

The reasons behind implementing enterprise-grade blockchain solutions are complex and largely focused on optimization and safeguarding of business workflows. With some blockchain use cases being industry-specific, the high-demand fields of blockchain application are:

Blockchain use cases

Digital currency

33%

Data access/sharing

32%

Data reconciliation

31%

Identity protection

31%

Payments

30%

Track-and-trace

27%

Asset protection

27%

Asset transfer

25%

Certification

23%

Record reconciliation

23%

Revenue sharing

23%

Tokenized securities
(equity, debt,and derivatives)

22%

Sours

Top advantages of Blockchain for business

The benefits of applying blockchain technology across organizations are quite obvious. Based on platforms like Hyperledger Fabric, private and consortium blockchains enable enterprises to streamline their corporate operational efficiency. The most beneficial features of blockchain systems for business transactions are:

Rock-solid Security
Strong Data Immutability
Enhanced Accuracy
Greater Development Cost Reduction
Improved Transparency & Privacy
Permissioned Validation
Higher Transaction Throughput Rates

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