Private blockchain development - outsourcing company Boosty Labs

Benefits of Private Blockchain

Increased system control

An exclusive blockchain involves the processing of transactions by certain companies and responsible persons with special keys. This limits the ability to read information. As a result, companies increase control over the system, which is a more controlled environment.

Anti-fraud

The key advantage of using an enterprise blockchain is the leveling of the human factor. There is no risk of making mistakes or fraudulent activities.

Suitable for solving specific business problems

An enterprise blockchain creates a governance structure that is transparent, adaptive, and flexible compared to an open system. Therefore, it is more in demand in those areas where the solution of specific business problems is required (for example, an election campaign).

High degree of efficiency

Due to its features, the corporate blockchain allows to more effectively solve the problems that the business faces.

Private blockchain features

Simplicity

In a corporate blockchain, complex mathematical algorithms for confirming the legitimacy of information are usually not used, as is done in public (proof of stake vs proof or work) versions of the system – the circle of participants is known and limited.

Frameworks for Exclusive Blockchains

Blockchains with exclusive access are less global compared to public blockchains. When creating them, developers do not aim to build a single infrastructure for any industry as a whole. For this reason, the development of exclusive blockchains is based on frameworks, while public blockchains are more like PaaS solutions.

Application scope

Private blockchain is of interest to both retail enterprises and global structures (for example, banks). It is for banking institutions that it is most important, since this technology will better protect the transfer of data and money. This technology can be used in a variety of areas, as it allows you to store information, as well as use smart contracts.

High degree of security

Private blockchains are attractive to corporate clients primarily due to their security and decentralization. The technology involves recording transactions in blocks, each of which is sequentially included in a single goal. At the same time, the probability of hacking the system is minimized, so each block is encrypted via a hash function, so that any changes in its code are immediately visible.

Corporate systems are always different from public ones.The main obvious difference is that corporations do not like their data to be made public. Therefore, they create specific models for themselves. There are three types of such systems, classified by accessibility:

Public – the most striking example is the blockchains of cryptocurrencies (Bitcoin, Ethereum, and so on);

2. Private – participants can connect to such a blockchain at the invitation of other participants;

3. Exclusive or corporate – owned by a company or group of companies.

Public blockchains are censorship resistant. However, this feature ceases to be a virtue in the context of the internal workflows of a large company – in this case, control over the restriction of access to data comes to the fore.

An exclusive blockchain is a blockchain in which transaction processing is carried out by a certain list of entities with established identities. Access to read data is also usually restricted, although certain rights may extend beyond the circle of blockchain operators.

For example, in a financial blockchain backed by multiple banks, the data will be available to the regulator and law enforcement; the data can also be viewed by bank customers. In addition, this scheme may involve developers of third-party financial applications built on the basis of the blockchain, which have limited access to a certain set of information.

The corporate blockchain is well applicable for smart contracts in state corporations in order to reduce the time and cost of processing typical “product delivery – payment” transactions.
Global organizations are already actively exploring the possibilities of building their own enterprise blockchains.