Enterprise Blockchain Development | Nut & Bolts

What is Blockchain?

Broadly, blockchain is the cryptographically secure portion of the internet. Its decentralized nature is in contrast to the fundamental aspects of the internet, which is, centralization of data storage and the role of centralized servers. This is a system of decentralized ledgers that distributes information throughout the network. Enterprise Blockchain development is a section of the blockchain network, which is again similar to that of the internet.

When blockchain debuted in the cyberspace it was designed to offer complete access to anybody. From a perspective of security, Blockchain aligns with the dictum: “Openness is the best Defence.” The network is supposed to be publicly accessible as anyone can run a full node and start mining, make transactions, can review and audit the blockchain. In this technology, there is no requirement of a third party authentication entity. The strongest aspect that makes a blockchain secured is its in-corruptible decision making.

As long as Internet is active, a distributed ledger is accessible to its owner along with information in it. However, as the technology evolved as Decentralized Applications for a specific purpose, Enterprise Blockchain development evolved gradually along with it.

 What is Private Blockchain?

While functionalities of any general blockchain are accessible publicly, Private Blockchain does not offer this amenity. Compared to public blockchain, private blockchain is opposite. Only permitted members have full access to every functionality of the chain. Here, it is possible to select particular members of the blockchain to access unique functionalities. For this features, private blockchains are deployed by enterprises for internal operations.

Even if the comprising ledgers are decentralized, Enterprise blockchain development is similar to conventional web application. This is because, the owner of any private blockchain is a person or a business entity. Only the owner has the rights to override or delete any command. Private blockchains are comparable to cryptographically secured databases. This type of blockchain is offering an effective alternative to web applications. In fact, any blockchain application for internal operations of an organization is always a private blockchain. They are with their own advantages and disadvantages.

What makes Private Blockchain different from Blockchain?

Clearly, a private blockchain has several differences to public blockchain. Being owned by an entity, it is a decentralized but selectively accessible network. Here are some differences between Private and Public Blockchain.

• Public Blockchain does not have any authority. Once it is deployed on the internet, any body can be a member by accessing a new ledger. Such a member has full rights equal to any other member on the network. Private Blockchain is owned by an entity, which is the absolute authority of the network. Such privately owned blockchains are open to only invited members or to members with predefined access. Members in a private blockchain cannot have equal rights as the owner unless approved by the later, by overriding the code.
• In public blockchain, anybody can start mining, anybody can audit and make a transaction. In contrast, private blockchain is not openly accessible. Only selected members with special privileges and rights can audit a private blockchain.
• Private or Permissioned blockchains are faster compared to public blockchain. They don’t require a large amount of energy, which has been a prime lacuna of public blockchain. Thus private blockchains are cheaper to maintain compared to public.  Also, Enterprise blockchain development is a cost-cutting solution.
• In public blockchain, anybody can edit the code to reach a consensus. Thus, they are open source. But private blockchain has secured codes, which only the owner can change.
• Permissioned blockchain is comparable to conventional web applications with a central authority, but public blockchain is opposite to traditional ecosystem of the internet.

Processes of Enterprise Blockchain Development?

Private blockchain development have several approaches. The three top ways to develop a permissioned blockchain are:

• Forking a Public Blockchain

A portion of public blockchain can be used to create a private blockchain. Public platforms like Ethereum and Bitcoin is forked by adding a Certificate mechanism. This mechanism is developed to add blocks with a special signature. Such special signatures are offered in only the mining nodes belonging to the forked portion of the public blockchain. This system transform a part of public blockchain to a private blockchain.

• Using a Pre-developed Blockchain framework

There are several independent blockchain frameworks including Hyperledger Fabric, MultiChain, and Interledger, that create private blockchains. Simple APIs, Command Lines are used to implement such private networks. These frameworks are open source.

• Using platforms specifically for Private Blockchain.

Platform like R3 Corda is specifically developed to create private blockchain. These platforms can produce independent and customized ‘Decentralized Ledgers’, which are used as permissioned blockchain.

Common Traits & Technology

Creating a private blockchain starts with the Genesis Block. This is created by forking a blockchain, which is a process of splitting an existing chain. The ledgers for the private blockchain is built above the Genesis block or the very first block of the new perspective chain. The second block above it will have the reference to the first block by a Hash Function, the third will have the reference to the second and so on. A prescribed command runs on the terminal of the developers. This command contains the part of the data directory and the network identifier. There are several Network Identifiers, pre-defined by different blockchain technologies.

In a private Ethereum Blockchain, Externally Owned Accounts (EOA) and Smart Contract Accounts (SMA) are created. The EOAs store information of each new members of the chain, while, SMAs store the Smart Contract, which are the terms and conditions to connect to a new block. Also, in Ethereum blockchain, commands from developer’s end can initiate mining.

Enterprise Blockchain Development is basically for enterprises. They are corporation level blockchains which are secured and reliable enough to perform as mechanisms of internal process operations. Performance, Security, Integration to existing frameworks and Resilience are the parameters that define the success of a private enterprise blockchain. These blockchains support automated monitoring, confidentiality as well as enforce transparency in the system. Although similar to conventional web applications, for these ingrained features private blockchain is transforming as a prime adoption for enterprises.