There is no doubt that blockchain solutions offer better options in certain use cases.
Editor’s note: This IT Blockchain article is part two of a two part series. In part one addresses how a distributed database that maintains a continuously growing list of ordered records. Read Part 1 here: IT Insights- Why Blockchain Adoption Is a Slow-Go
At the end of 2015 the Linux Foundation initiated the Apache Hyperledger Project, which was another open-source blockchain platform.
Unlike the previous blockchain solutions this one was designed to satisfy the needs of financial institutions and other entities that needed a distributed ledger model that supported global business transactions.
Members of the Hyperledger project include Accenture, BNY Mellon, Cisco, DTCC, IBM, Intel, JP Morgan Chase, Ripple, and Wells Fargo to name a few of the hundred plus members.
The key differences between the Hyperledger software platform and the Ethereum ones are:
- Encrypted data and keys and memory protected in containers, LPARs or VMs
- Root users and systems administrators cannot access or see the data or software
- Performance optimized (up to thousands of transactions/second)
- Executable in a z System mainframe, providing an extra secure services layer
- Participants see only their transactions
- Only the parties involved in a transaction can verify (approve) the transaction
- The network is private and permissioned
Nearly 30 companies announced at the end of last month the formation of the Enterprise Etherium Alliance (EEA), which will create a standard version of the Ethereum software that businesses around the world can use to track data and financial contracts.
Members of the new alliance include Accenture, Banco Santander, BBVA, BNY Mellon, Credit Suisse, ING, Intel, JPM Chase, Microsoft, Thomson Reuters and UBS.
The new standards will address the usage problems mentioned above so that Etherium can be used for low volume financial transactions.
While there are hundreds of blockchain proofs of concept completed or in process, there are very few actual blockchain applications in production.
Bitcoin is the best example of the Ethereum projects. IBM has two use cases in operation: IBM Global Finance (IGF) is using it for dispute resolution while the startup Everledger has unveiled the use of blockchain technology to digitally certify Kimberley Process export diamonds.
Next- Examples of Selected Potential Blockchain Use Cases and Summary