An Entrepreneur’s Guide to Enterprise Blockchain and Its Use in Business
It is no news that blockchain technology is gradually taking over our economy, and the business sector is not exempted. With the introduction of blockchain enterprise, there would be a complete turnaround in the way of doing things.
In the past, entities like the government, banks, and cooperatives managed economic risks using methods that were quite costly. However, it has been predicted that the blockchain in business would grow to slightly $176 billion by 2025 and will project to cross 3 trillion in 2030.
If you keep reading, you’ll discover more about blockchain enterprise, it’s great features, types of blockchain enterprise and its benefits to business organizations.
To properly explain Blockchain experience, let’s talk about blockchain. Blockchain is a decentralized system of storing and recording transactions across different computers. Records stored in blockchain are immutable, transparent, and secured.
A Blockchain technology that can be integrated for business purposes is called enterprise blockchain. This simply means that these technologies are built to deal with enterprise issues and demands. They are not like regular blockchain technology, as the system is not for everyone. It runs on a closed network, often under the control of a single entity. This type of blockchain usually has the same decentralization and peer-to-peer architecture as public blockchain but on a much smaller scale, which boosts performance.
Features of blockchain enterprise
Permissioned access
As mentioned earlier, enterprise blockchain is not for everyone. To be part of the transactions and consensus mechanism in this system, one needs to be granted access first. This is to ensure scalability, privacy, and security.
Smart contracts
Smart contracts are codes that a blockchain system operates on. Enterprise blockchain supports this system but under certain conditions. Smart contracts automate the system and enable programmability. They are used to streamline business processes without the involvement of intermediaries.
Governance and consensus mechanism
To ensure proper decision-making and consensus in the system, there are rules that must be met, and enterprise blockchain employs the governance and consensus mechanism to ensure that the system is well-managed. Consensus mechanisms like providing the necessary trust for effective operation, proof of authority (POA), Practical Byzantine Fault Tolerance (PBFT).
Scalability and performance
Due to the large number of transactions that occur in the system, enterprise blockchain employs scalability and performance to meet the demands of its users. They use consensus algorithms, sharding, and off-chain processing techniques. These processes help the system carry out large amounts of transactions without failure.
Types of blockchain enterprise
Public Blockchain
This blockchain enables anyone to join the system, participate in consensus, and run transactions. It is more transparent and decentralized but not fit for enterprise use and doesn’t ensure scalability.
Permissioned (private) blockchain
Permissioned blockchain is for a limited number of people who have been granted access to join the system. It is more scalable and more secure as it employs governance and consensus mechanisms in decision-making.
Consortium blockchain
Consortium blockchain shares similar properties with the private blockchain but here one node validates transactions and it is controlled by a group of people, this blockchain is very expensive and most times does not provide a good ROI for participants.
Hybrid blockchain
This blockchain holds the features of both public and private blockchain, hybrid stands in-between transparency and privacy, organizations use it to dish data to the public while maintaining a private scheme.
How can enterprise blockchain be of good use to business organizations?
Enterprise blockchain offers invaluable advantages to business organizations, especially in the prevalent issue of slow and unreliable networks, a common challenge in African business environments.
1. Seamless transaction
Unlike traditional systems, blockchain enterprise ensures a swift and seamless transaction process, circumventing the disruptions caused by sluggish or irregular networks. Also, unlike centralized systems with restrictive limits on transaction amounts, enterprise blockchain allows businesses to send any amount without being bound by centralized restrictions.
2. Cost-effectiveness
This is a significant advantage of adopting enterprise blockchain. Traditional methods of record-keeping and transaction processing often involve intermediaries, paperwork, and lengthy verification processes. By automating and decentralizing these processes, businesses can reduce costs associated with intermediaries and streamline operations.
3. Immutability
Once a transaction is recorded on the blockchain, it cannot be altered or deleted. This not only ensures data integrity but also adds a layer of security to the information. In industries where data accuracy is critical, such as finance or healthcare, this feature can be a game-changer.
4. Elimination of Middleman in Business
Blockchain enterprise is a decentralized system that does not involve any third party. Therefore, it eliminates middlemen and automates processes, saving time and effort. It has the potential to save IT and labor costs, speed up e-commerce and finance, and enable new lines of business. It can also help businesses expand their customer base more efficiently and broaden the universe of suppliers and partners.
5. Security
Security is a paramount concern for businesses, and enterprise blockchain addresses this by utilizing cryptographic techniques. Each block in the chain is linked to the previous one through complex algorithms, making it extremely difficult for malicious actors to tamper with the data. This level of security can be particularly beneficial for protecting sensitive business information.
