A core reason behind worldwide blockchain adoption is the option of removing all sorts of intermediaries. Its working principle prioritizes transparency and immutability. The P2P ecosystem features data validation by network participants. With its decentralized network structure, the blockchain empowers users with node authority and removes a central head. Three popular types of blockchain networks exist in the business environment- Public, Private, and Consortium. In this article, we shall be talking about the impact and benefits of private decentralized blockchain for enterprises.
What is a Private Blockchain Network?
Public blockchain networks form the foundation of cryptocurrencies(Bitcoin, Ethereum). As the name suggests, private blockchains require permission for entry. A member (business entity or organizational section) needs an invitation to be a part of the private blockchain network., The ecosystem is closed to the outside world- making it an ideal option for business enterprises. It is perfect for document transfer and sharing between firms and organizations at a similar level of organizational hierarchy. However, the possibilities are endless- be it supply chain, health cycle, gaming, AI implementation, real estate, DeF payments, or others.
Uses of Decentralized Blockchain for Enterprises
A private decentralized network has several advantages over other existing technologies. The most significant ones include:
- No “Trust” Requirement
A decentralized network does not require each member to know everyone else. The exact same ledger data is available to each member- with the same updates distributed all over the network.
- Data Recollection Enhancement
Data exchange between business organizations is common. Once the data is exchanged, it is kept as storage in the company database. On data recollection, there is a high chance of data loss. Incorrect data inside the workstream may also cause problems. With decentralized data storage, blockchain simply eliminates all of these issues.
- Weakness Point Reduction
Relying too much on a specific component/member can be detrimental- especially if the resource fails to deliver. The weakness points could very well result in systemic failure due to burnout, outages, bottlenecks, low incentives, or simply corruption. A decentralized network prevents chances of such errors.
- Maximized Resource Distribution
Proper resource distribution with the help of a decentralized network helps businesses perform better with higher efficiency and consistency. The probability of a catastrophic failure is also reduced.
Decentralized Blockchain in Enterprises Examples
Private decentralized blockchain implementation is increasing its prevalence all over the world. Business enterprises and organizations have integrated this technology into their ecosystem resulting in much higher efficiency levels. Here are a few notable examples of decentralized blockchain uses.
Retail giant Walmart has started using blockchain in tracing the final shelf product right to the procurement source. Blockchain allows Walmart suppliers to share authentication certificates effortlessly. This mitigates instant trust and transparency throughout the entire ecosystem. Without blockchain implementation, it would have taken days to trace the source of origin.
Blockchain use has gained widespread acceptance in the diamond industry. A worldwide entity featuring one of the most complex exciting supply chains in the world, the main challenge for diamond industries is traceability. Illegally obtained diamonds from the war-torn regions of Africa are used to finance insurgents and cause unrest. They are also obtained unethically, often violating human rights. Blockchain implementation ensures transparency, rejecting blood diamonds from the conflict regions.
The high-security features of a decentralized blockchain make it a very useful tool for healthcare security. Data fragmentation through decentralized networks prevents cybercriminals from targeting healthcare securities and acquiring confidential patient information. Recent blockchain developments by Philips include the healthcare ecosystem HealthSuite. In combination with AI, the application helps in real-time analysis and efficient solutions to existing problems of the subject healthcare facility while storing patient data.
Banks and Financial Institutions
Like hospitals- banks and financial institutes also use private decentralized blockchains for security purposes. Finance institutions are regularly subjected to cyber-attacks and hacking attempts. A regulatory board of US Banks, the OCC details how modern attackers often use the latest technology; and recommends banks to deploy a multi-layer blockchain security protocol. Giant corporations like Morgan Chase, Santander and provide B2C crypto-based payment solutions using a decentralized private blockchain., The network also helps users with the efficient organization of interdepartmental communication.
Also Read: The Benefits of Blockchain Implementation in Cybersecurity
A Decentralized Blockchain Favorite for Business Enterprises
Private decentralized blockchains require highly customized and technical solutions. It is imperative to have a clear grasp and understanding of the client’s requirements from the very beginning, and deliver on time. Experience and exposure to the latest technologies- both are necessary. AI-powered Blockchains and cloud-based blockchain augmentation will further revolutionize the entire blockchain ecosystem. All these are reasons why Hashcash Consultants is a premier choice for private blockchain development.
Over the years, US-based HashCash Consultants has made a name for themselves as blockchain developers par excellence. They were already front-runners when they started providing specialized blockchain services. Making a mark first with crypto and fintech services/solutions- HashCash today runs PayBito, a highly successful global cryptocurrency exchange. Billbitcoins, another HashCash product, is a state-of-the-art crypto payment gateway processor. Blockchain however still remains the foundation of all HashCash operations including extending support and providing customized solutions to client requirements.
Decentralized Blockchain for Enterprises: HashCash Ventures
If previous work experience is anything to go by, HashCash has successfully delivered innovative solutions across diverse industrial sectors, including:
Mining Supply Chain
HashCash has built solutions for a worldwide group of car, mining, and battery manufacturers. The aim of the blockchain-powered supply chain network was to ensure accurate traceability of the minerals mined in Congo. The network guaranteed that minerals i.e. cobalt, tungsten, and lithium were mined through ethical mining practices and not using child labor. Around 40000 children are exploited through harsh working conditions in the cobalt mines of Congo, as per a 2017 UN estimate.
Diamond Supply Chain
As explained above, the diamond supply chain is ridiculously long and complex- making it hard to ensure proper tracking and transparency. HashCash has successfully built a diamond supply chain blockchain network for an Indian organization aiming to facilitate business within the network. The blockchain network has its own cryptocurrency which is used for trading within the network’s direct market, for a minor transaction fee.
The crypto acts as a secured token, fending off outside attacks that attempt to produce a large number of false transactions within the ledger- taking up a lot of space. The crypto token is valid across global banks, forex businesses, payment service providers, and major E-commerce merchants. With SegWit implementation, the network can manage 3000 simultaneous transactions per second and over a hundred million transactions each day.
Alternate Banking Options
HashCash has previously developed a project to address the needs of an unbanked population in collaboration with an Egyptian fintech. Over 85% of its population remains unbanked simply due to not having access. As a solution, HashCash’s blockchain-based financial ecosystem featured a mobile application with a significantly lesser amount processing fees compared to conventional banks. The app also made payments efficient, swift, and secure. The private decentralized blockchain follows the Proof of Stake mechanism with smart contracts to ensure risk-free transactions.
Also Read: HashCash To Develop Crypto Solution For Egypt-Based FinTech