A blockchain’s data, a ledger containing a record of all transactions that have taken place on the chain, is stored across a peer to peer network of “nodes,” many computers in a network that all hold a copy of the ledger. These nodes can be widely distributed across the globe with anyone having the ability to add their machine to the network or can be centrally managed and with the organisation using the chain having full authority over every node that is being used.
There are pros and cons to each approach, with private chains having faster transactions due to generally fewer nodes on the network and public chains retaining the decentralised and immutable (unchangeable) features blockchain was initially envisaged with.
However, in terms of power consumption and sustainability having a private blockchain will allow an enterprise to control where the
nodes are sourcing their power from.
Currently, most enterprise blockchains are permissioned blockchains among multiple parties, so the data can be altered if all the entities involved agree. However, certain businesses such as banks and financial institutions require better security and privacy protection blockchain solutions. As a result, enterprise blockchain adoption has steadily increased in 2021, and it will boom in 2022 as more organizations explore enterprise solutions.
Notably, new technologies such as hybrid blockchain that combine both private and public chain features have emerged to meet the demand of enterprises and traditional businesses.
4 Comments