Overview
Do you remember the huge digitization market wave? It almost hit all the industries from Fintech to Healthcare. Well, obviously this even counts other industries like E-Commerce and Gaming. But, while that was there. No industry potentially paid heed to the consequences it could backfire. More like the sudden surge glammed up the backlashes it could have.
Back in those days what could be marked was just the digital revolution happening. And, the industries taking up the digital leap. It was more like a race and everybody hopped on to win over the trend. But, it was not much later that that digital wave toned down and storm crashes like data leaks, transaction frauds and hacking hit hard.
Cut to the current trends of overtly secured mechanisms. So how was this mega shift possible? Well, in 2008 a genius named Satoshi Nakamoto founded a technology more like a blaster technology named ‘Blockchain’. Now, who knew this could possibly beat all the technology glitches and drawbacks that the industries faced. But, it was not the prima facie feature behind this underlying technology that came upfront. It was just recently Blockchain Technology expanded and pitched in some stellar versions like Permissioned Blockchain. And, this did wonders for the industries by panning out extended and super efficient security protocols.
With all the decentralization pitching in centrally for almost all businesses and data vulnerabilities being as normal as a tech incorporation across the globe. One could only rely and hope for a savior like Permissioned Blockchain. Which extensively promises scalability and security to level any business anywhere, anytime.
But, to make the most of this facet of Blockchain. You need to dig in further to see how you can possibly make the most of this technology on the fly. And, also which of two segments Permissionless or Permissioned Blockchain is the most lucrative.
What is Blockchain Technology?
The real catch of extreme business security lies in picking the best type of Blockchain Technology these days. But, to pitch in that you need to brush up the basics right? So, join in.
Blockchain Technology is fundamentally a Decentralized Ledger Technology (DLT). It is a form of ledger with cryptographical records. Yes, so this is the technical explanation to the underlying technology that is adopted by every other giant. The Tech-scalp under the mega frontiers that buzzed for quite a long time. Yes, you guessed it right? Bitcoin and Crypto.
To take it further, Blockchain technology is blocks of data or transactions encrypted with extra security for a given network or chain of servers known as ‘Nodes’. That’s there and you would now be wondering how it is technically beating the hacking and data leaks at such an incredible level.
How does it operate?
In Blockchain, ‘Hashing’ is the prime operator. It is basically a process that analyzes steps taken up before the actual transaction takes place. This is a step of the entire process where the data is provided a unique identity or overlap. Again, the aim is to ultimately secure data against unsecure threats, losses and tampering.
Let’s understand it with a simplified example: A hacker attempts to tamper one of the many live copies or blocks. The consensus will notify other nodes and then they will use this process to deny the access and voila the processes on the hackers end becomes invalid.
So, basically to put it up for you in layman sequence- Blockchain Technology goes by like this:
- Cryptography
- Hashing
- Consensus
- Decentralization
And, here is where we spot a twist. Blockchain Technology owing to its most known outcomes like Bitcoin and Ethereum has been embraced for providing a decentralized ecosystem. Surprisingly, that’s not all, now with the advent of Permissioned Blockchain it is more like a restrictive approach clubbed with Blockchain. Centralized authority is the most distinguishing and viable approach for industries across the globe nowadays.
What are Permissioned Blockchains?
The lifeline of business is data security along with profits these days. Where data reigns parallel with profits, security over online data is non-negotiable in this digital age. But, then how are the business giants in multiple streams acing the game? What is the secret sauce?
We will give you that secret sauce. It is called ‘Permissioned Blockchain.’ Now what is it? As the terminology suggests it is that facet of Blockchain Technology which enables the business owners with the most power- which is Permission. A business runs on a network, the network further holds users or participants and these participants have access to the network in order to participate.
So, to regulate access control and manage the participation of users on the network ‘Permissioned Blockchain’ comes to play. Here, there are various other features that simply advances the operability and scalability of the business. This segment of Blockchain technology is no less than a hot pick for business owners like you. Data security and transaction authentication is something that all businesses are in a race to catch. And, we are cent percent sure that you being a business owner will take that extra mile to have the trajectory of your business covered right?
Well, then in that case ‘Permissioned Blockchain’ is your ‘GO-TO-STEP.’ Within this segment of Blockchain you get total control of mining, authentication, approval and permission on your business network which is the key to the prime level of security. But, technically how?
- Permission is a critical element.
- Users in this network are to be known to each other.
- Anonymity is invalid.
- Consensus is a required facet for security.
- Authentication is a must and non-negotiable for the miners.
There is a suite of features that resonates to the fact that Permissioned Blockchain is ideal for any and every business. But, do you know what’s the most impeccable factor that it entails? Well, worry out if you don’t because we will share that with you along with the detailed business advantages.
You can choose the level of Centralization!
Are you looking forward to having a technology that lets you choose the level of centralization and Decentralization of control? Do you want to strike a balance on trustless collaboration to some extent and a stricter centralization?
So then, Permissioned Blockchain accords you that flexibility. If you take our word we do claim that this particular segment of Blockchain is a highly promising, convincing and remunerative technology to invest in.
What are Permissioned Blockchains?
This pioneering segment of Blockchain has been serving all the business at a global level. More like during its early stages Blockchain panned out its feature-rich presence with Bitcoin, Ethereum and Crypto. And, now Permissioned and Permissionless Blockchains have taken over. But, again Permissioned Blockchain has an upper hand.
Here we will tell you how this hyper-smart digital wave has called out for added security, authentication and amplified access control for the businesses. Now, any enterprise be it of any size can go down shackles with data leaks or security intrusion happening within the processes right? And, in this datasphere, data and transactional potency is the prime requirement for enterprises across the globe.
1. Healthcare
- There is a well-defined process that Permissioned Blockchain runs on when it comes to protecting data and panning out access control.
- Well it is pretty evident that the healthcare industry is the most significant segment amongst the rest of industries. And, the reason is quite direct that it consistently deals with zillions of significant personal and intricate data of the patients.
- But, this is not it. There is more going on with regards to data on multiple levels. Where it includes a myriad of important details like Medical history of the patients, clinical trial data, personal details and other diagnostic information.
- More like it holds a port of data with invincible significance and cannot be afforded to be tampered with at any cost.
- However, this is where the heroic Permissioned Blockchain comes to play.
- With the incorporation of this high end breed of blockchain, centralization has overhauled and sidelined these glitches. But how and to what extent?
- It pitches in two ways : Firstly the access over the data becomes restrictive with only pre-approved participation and that is a big win for the business these days which are data centric for the most part.
- On the other hand, it is the suite of ancillary advantages within the network which includes extensive and tamperproof features that provides streamlined processing, supply chain management protocols and even smart contracts.
- Well, having said that zilch data silos and enhanced security have to be the main perks entitled to this data intensive industry and certain global giants have already integrated it to use. For Example: GuardTime in Switzerland and MedicalChain in England.
- Well, having said that zilch data silos and enhanced security have to be the main perks entitled to this data intensive industry and certain global giants have already integrated it to use. For Example: GuardTime in Switzerland and MedicalChain in England.
2. Fintech
- Fintech is the prime giant when it comes to the security intensive segment.
- Digitalization has flared up flavors of hacks, data thefts, transactional frauds and user data breaches for illicit and illegal money transfers. Well, data breaches or bogus transactions can give shivers down to the spine to any individual or entity right?
- But, now with blockchain technology taking a massive step up with permissioned blockchain, the fintech industry can finally be at ease.
- Access control, authorization and data transfers amongst the permitted users are some of the ensured traits that permissioned blockchain gives to the users. You can be rest assured when it comes to the security and risk elimination with this blockchain incorporated in your enterprise.
- Also, on top of this the extremely lucrative benefits that this facet of blockchain enriches is scalability and network potency in this digitally pivoting era, where hacks and transfer glitches happen every second of the day.
3. Ecommerce
- Well, E-commerce is a wider ambit of services which includes multifarious segments of services. To start with the basic inventory control, supply-chain management, transaction processes and customer service it is an ecosystem in itself.
- But, do you know how much risk is clubbed with all these segments of services in total? Well, earlier people were of the opinion that swapping traditional business models with digital and tech-centric systems would be the ultimate save. Although, who knew the tech-centric system comes with its own suite of shortcomings. And, more so to the extent these tech fallouts can actually shun down the business or get the business owners like you in real trouble.
- However, there is always a flip side. And, in this case it is the advent of Permissioned Blockchain technology which is actually facilitating each segment of E-Commerce to the core.
- So, if you are into E-commerce or any segment of it- this is how it may come to your rescue- Control on manufacturing processes, Real-time updates on inventory control and supply chain management with no external access, you can have extensively secure payment processes with exact data recorded and stored on the digital ledger.
- And, last but not the least, the most significant aspect for any E-commerce business is client retention. Well, it can help you retain the clients by panning out customized approaches and client-centric secured services.
Permissioned blockchains offer a cluster of cost-effective services as a platinum suite for the business. And, this cluster is highly feature rich including efficiency, scalability, trust, access control, and security. Get in touch with a blockchain development company today and get your business up to the speed and trend.
Now, let’s get into the nitty gritty of what specifically goes into the algorithms?
What are the best Consensus Algorithms in Permissioned Blockchain?
Just knowing about the advantages of permissioned Blockchain would not be all. More so, you need to know what actually steers up this specific category of permissioned blockchain at a technical level. Now, this does not mean we will fill you in with technical formats and explanations which simply surpasses the subject scalp.
| RAFT | PBFT | FBA |
|---|---|---|
| RAFT is a type of consensus algorithm | PBFT is basically a superior version of BFT and it stands for Practical Byzantine Fault Tolerance. | This consensus algorithm is known as the Federated Byzantine Agreement; it follows a method known as ‘Quorum Slice. |
| In this, a leader and follower sequence is followed within the network. The leader starts or proposes the election and requests votes on all the nodes. | In PBFT, the process is almost the same as RAFT in terms of Leader and follower. | Well, in this type of consensus each node chooses a set of other nodes for transaction. |
| On the basis of majority of votes secured the candidates within the network elect one leader and the rest will be the followers. | The primary node here is the leader and the secondary nodes are mainly for the backup or followers. | The entire chain of nodes that are trusted is known as ‘Quorum Slice.’ |
| A term and index based process is followed in this consensus. Where the nodes checks both the number and further declines the vote for a lesser number. | However, the distinguishing feature with this consensus is that the nodes can shift from secondary to primary. | But, amongst all the features the prime benefit if this consensus algorithm is not each node of all others are to be known or validated. |
| For example you are into the Gaming Industry- This Consensus will help you to have a secured gaming transaction, access to virtual asset ownership and most importantly elimination of fraud and and cheating. This consensus enables the users with up to date gaming information with extensive reliability. | But, this consensus algorithm is quite favorable for permissioned blockchain as it can tolerate up to 1/3rd of the total faulty nodes. Also, the faulty notes will be categorized as malice or nodes that are simply not working. | Considering both the consensus algorithms, a fairly common feature is the fault tolerance. Like the PBFT consensus even the FBA consensus tolerates up to 1/3rd faulty from the total number of nodes. |
Permissioned Blockchain v/s Permissionless Blockchain
The thing with these starrers of Blockchain is each of them hosts a suite of services and features that are viable for different business models. These tech frontiers penetrate a series of security rich features like the benefits of Permissioned Blockchain are in bulk and are the best for B2B models. Permissioned Blockchain is the best for B2B models.
But, then if you are seeking for an open network feature port then Permissionless Blockchain is your go to. Just like anyone would know about the famous Crypto and NFTs which buzzed for a hot minute.
Permissionless Blockchain – The distinct and quite buzzed segment of Blockchain. It is an open ecosystem. Proportionally opposite to Permissioned Blockchain. This network is not pre-conditional to access and permission. One does not require to get access, approval or joining permission. The transactional access or data access is direct and transparent amongst all the participants.
Anonymity is rightly acceptable in Permissionless Blockchain. And, this makes it accessible to a wider crowd. The network bandwidth is potentially extensive as compared to the Permissioned Network.
While both the segments of Blockchain offer distinct suites of features. Like pre-conditioned access, opened and closed network, predefined network, Customization and loose network. However, the aspects like costs also vary amongst the two, where permissioned blockchain being this stellar foray of Blockchain is still cost efficient to the core.
The segment is further divided by examples. Where a few examples of Permissioned Blockchain are Ripple, Hyperledger Fabric, Corda. On the other hand, Permissionless Blockchain has its globally buzzing breakthroughs like Bitcoin, Ethereum, NFTs.
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Final Words
Permissioned Blockchain has undoubtedly been a game changer for the industries planet-wide. It all comes to its feature that overpowers business resilience through top-notch security and scalability provisions for the businesses at an impeccable level. And, more so with the tech pacing up and the threats quadrupling the basic blockchain technology will end up serving as a tip of an iceberg. And, what business on the globe would want to scale at a basic level and be prone to security breaches right?
So we hope this would have helped you to pick a viable blockchain technology among the two streaming ones. The best part is the adaptive rate of this particular technology and an elevation in the resources. This progressive step inspired the IT service providers to venture as a Blockchain app development company. Permissioned and Permissionless. Let us know which you think suits the best for your business.
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