In the past few years, interest in blockchain has been recorded and everyone has noticed this technology. Deeper enthusiasts have delved into the different types of blockchain networks and the possibilities they exist.
The distinction between a public non-privileged blockchain network and a privately-privileged blockchain network is fairly straightforward. Simply put, a public, unprivileged blockchain has no access restrictions to view its data. Typically, such networks provide financial rewards to those who obtain them and use a consensus algorithm based on some sort of lottery.
On the other hand, privately-owned blockchain networks need to obtain permission to read information on the blockchain and limit the parties that can trade or participate. Some examples include Corda for R3, as well as various super-knowledge ledgers, including Hyperledger Fabric and Hyperledger Sawtooth. Few privately licensed blockchain networks make sense, but there are also publicly licensed networks that appear to better extend the public network.
When a company is in the architectural planning phase of a blockchain network, the team must first assess the goals to be achieved by the network. Who is more suitable for a public or private blockchain network? Should the network be tagged? Which specific blockchain technology is the best choice?
For example, assuming your goal is to reduce fraud around invoice financing in India, it's important to understand how to connect customers in a secure and transparent way by creating an unprecedented blockchain network.
Privately licensed blockchain network
If a company wants to create a secure ecosystem to reduce financing fraud, then network access restrictions should reflect the sensitivity of the business processes it targets. Financing is limited to licensed or regulated entities, so the blockchain network should also be limited to the same licensed or regulated entity.
In an enterprise, especially in financial services, if there is a network that may be open to multiple parties, it is necessary to ensure that all parties comply with the same rules, regulations, and disclosures. In addition, companies need to know that anyone who is not eligible to access specific information and data is not available. If the risk of public participation is greater than the value they bring to the network, why should they participate? The public's risk to any network is serious, especially when the data stored on the network may be sensitive.
From a business perspective, it is rare for a transaction to be made public, and the network often only serves entities that meet specific needs. For example, questions about participating in the Swift interbank payment network are usually limited to participants who are a certain size, licensed, regulated, and belong to a certain category, because these participants have procedures in the network that have somehow vested interest.
Conversion of the private network to the public network
In some cases, the network or service should be public. For example, an identity service (which aims to verify the link between identity and encryption key) has a greater meaning than a public service that is specific to a single blockchain network, for example, a certificate authority (whose purpose is to verify identity) And the link between the encryption key). Binding a key to a known and verified public identity is a common requirement for a private network.
Nonetheless, unless the transaction information is public, even if the transaction information is encrypted or false, it is not possible to exchange the transaction information between the parties of the business itself in a public environment. In a few cases, transactional information must be made public, such as a property contract that can be publicly searched. Even then, a publicly licensed network would be an appropriate choice relative to public licenses. However, for most use cases, they almost always involve sensitive or regulated information, and privacy is a basic requirement.
Unlabeled blockchain network
Once the private and public parameters are weighed, it is important to ask whether it is appropriate to use a token model in a particular use case. Continuing with the previous example of reducing fraud, one can understand that using tokens in this particular situation does not add value. In fact, if there is no tokenization, the distributed ledger structure itself adds value because it provides secure and immutable data services, independent of any single entity, enabling data storage and sharing while ensuring Maintain its integrity. Tokens basically represent ownership and value. Therefore, unless you transfer ownership or value between participants, you don't need tokens, so you should avoid using them.
Now let's decide which tool to use.
Choosing the right tool for your job is critical. Once you decide that you want to build your network on a privately licensed non-monetary blockchain network (or other), the question is which blockchain framework best fits the needs of that particular use case. Before completing this framework, you need to remember the following conditions:
· Find a platform (private or public) that specifically handles the type of network you plan to build.
· The platform needs to be cost-effective and flexible in its design principles so that you are free to work around your needs.
· Everything needs to go through enterprise level and industry testing. Look for platforms that have successfully used use cases, or better yet actual production systems that have already begun.
The life of the platform is critical to the success of the business, so your choice should have a high probability of survival.
The decision about which type of blockchain network to use for your network can be a complex choice because there are many factors that influence decision making. Public or private? Is there a token? Proprietary or open source? Does the use case require a distributed ledger from the start? The final choice needs to be driven by the use case at hand. Before making a decision, take the time to thoroughly review the options and don't forget to talk to industry experts before making a decision. Making a decision without any evidence will only lead to failure. If you are dealing with an industry-wide use case, the advice from other participants in the network is critical.