Hyperledger is an umbrella open source project that has been created by the Linux Foundation and hosted since 2015. The basic advantages of this technology are that it is immutable in nature. It enables building of trust between parties without any need of involving a central authority. There are several other remarkable benefits offered by this technology.
What is blockchain and how does it work?
A blockchain is a kind of linked list or a chain of blocks. It is a group of ordered transactions. Here each transaction has got its unique transaction ID. The owner of this technology digitally signs it. Click here for hyperledger consulting.
All transactions are broadcast, which implies that each and every user of this technology maintains a copy of it. Miners check the authenticity of the transactions and perform necessary work to add new blocks of transactions to the existing chain of blocks. A blockchain is often regarded as a distributed ledger.
Public blockchain is also called as permission less blockchain wherein any person has the right to read as well as write to the blockchain. In a permissioned or private blockchain, only identified participants can read and write the blocks of transaction.
Benefits of Blockchain technology
A blockchain enables entities who don’t know one another to agree on the database condition without any requirement for any central or intermediate authority. Put in other words, it establishes reliability across strangers. There are a lot of other benefits of incorporating blockchain technology in a business.
These include payments, settlements, asset tracking, trading, smart contracts, shared record-keeping, voting, claims, provenance, digital tokens, loyalty or rewards programs. The biggest use of this technology is to track asset in government and transportation; record-keeping in health care, utilities and insurance, provenance in securities trading and retail sector.
When should you use a Blockchain technology?
To ease the decision-making process, there are a few questions that you must ask prior to using blockchain to address a certain need:
· Is immutability required for the proposed use case?
· Is it needed to rectify a mistake or remove a record in a blockchain?
· Are there several entities involved, or do you want to solve a problem in an organization?
· If there are multiple stakeholders or entities involved in the network, then do those independent parties trust and totally rely on each other.
· Do you require the transparency offered by the blockchain, where every involved entity can view the chain?
· Is it essential to know the systems or humans involved in a financial transaction to ensure that transactions can’t be compromised and counterfeited?
· How significant is the system to be distributed?
· What are the varying performance needs, and how can a blockchain fulfill these needs?
· It is necessary for constrained devices with restricted resources to participate as a blockchain node?
· Do you have a good architectural design between the blockchain and the application that is being designed?
Blockchain is a highly promising technological innovations that have successfully captured the attention of startups firms and legacy institutions. It is a remarkable technology that can solve significant issues. Make sure you ask yourself these questions to make the best decision about blockchain implementation.