Cryptography and encryption. Consensus algorithm. Decentralization. Is enterprise blockchain reaching enough safety for a business’s disruptive phase?
Blockchain is changing the definition of trust, based on being arguably the leading security technology today. However, there are also many concerns for businesses when learning and implementing blockchain, making the application process and adopting blockchain a hurdle. So with $13.2 billion of value as expected by 2024, is enterprise blockchain reaching enough safety for the business’s disruptive phase?
Safety in terms of technical principles and technology
Blockchain is a distributed ledger used to store data entirely in a digital environment. The characteristics of blockchain compared to other methods of storing digital data make it a more secure way:
Cryptography and encryption:
Cryptography and encryption used in blockchain help to process transactions, securely store information at the military level. Specifically, the input data is encrypted and locked using the SHA-256bit hashing algorithm, each change of any smallest data results in a difference in the output value of the hash function. Besides, each new block will contain its data and hash function and the hash number of the block before it, forming a chain of blocks that firmly links to each other.
Developers use the consensus algorithm in verifying signatures, transactions, and blocks. Therefore, a consensus protocol requires agreement between network nodes to reach a specific shared value. Verification decisions of each member are unchangeable and must be made within the allowed time, depending on the number of nodes in the series, and the size of input data. Some popular consensus protocols: Proof of Work, Proof of Stake, etc.
Each node on the network processes each transaction comes up with its conclusions and then votes on these conclusions to make sure that the majority agree with the decision. Once approved, the distributed ledger is updated, and all nodes store a copy of the ledger. This structure allows the logging system to be more flexible than the original simple database.
Permission requirement is the mechanism that makes enterprise blockchain privacy while maintaining transparency and is suitable for activities that require handling sensitive data of businesses.
Safety in terms of business development investment
With the increase from $1.2 billion to $39.2 billion of estimated business value from 2018 through 2025, enterprise blockchain increasingly shows the attractiveness of business development activities.
Blockchain application can show short-term as well as long-term results. In the short term, blockchain can reduce processing costs per transaction, creating a good reputation for an enterprise to adopt new disruptive technology. In the long run, owning a secure, immutable, and permanent data storage system will help reduce the costs of verification, verifying time with transparency.
System performance, scalability is what many people still doubt about blockchain. However, with improvements from time to time, enterprise blockchain platforms are showing the effectiveness of developing new blockchain initiatives with the ability to process 200.000 transactions per second.
Besides, the initial implementation and conversion cost, along with the complexity of operating new technology are what make many businesses now wonder about strongly adopting blockchain.
While many people are so excited about the benefits of blockchain for enterprises, worries are natural and even necessary – akaChain always advises its customers to avoid making ineffective decisions.
Therefore, the blockchain solutions that akaChain offer to businesses are not only aimed at achieving the required technical results but also aimed at calculating the investment costs and investment efficiency of companies.
akaChain is backed by FPT Software, a globally leading technology, and IT services provider. It is an end-to-end, permissioned, multi-chain network based on the Hyperledger Fabric. Since Establishment in September 2018, akaChain’s product has assisted many enterprises, from SMEs to Fortune 500 firms, to transform with distributed ledger technology. The company provides a broad range of permissioned blockchain-based products and services in multiple sectors, including retail, supply chain, banking and finance, insurance, shopping mall management, etc. to transform with its distributed ledger technology. For more information, please visit https://blog.akachain.io/.
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