Since the introduction of blockchain technology, companies now make their name overnight and expand their brand within a very short time. The two main categories of blockchains are public and private platforms. With private blockchain comes a secure and more controlled way of handling online transactions, a factor that public blockchains currently lack. In this article, we will discuss what private blockchains are, how they work and a few examples that you can use for your business.
First of all, a private blockchain is a permissioned database platform run and managed by a single entity. The operating entity not only manages the kind of people who access the blockchain, but also the viewing rights of each participant in the platform.
In a nutshell, here is the working process of a private ledger:
- The operator, usually a trusted intermediary, builds blockchain software or licenses one from a third-party developer. Also, the software using to set up nodes that build the private blockchain network.
- The trusted intermediary manages the nodes collection process or delegates this work to a trusted subcontractor.
- The nodes collected by the trusted intermediary or subcontractor verify transactions before they are recorded on the ledger.
- The trusted intermediary builds an app that interfaces with the validator nodes through an API. Permission is granted to some participants to access the app to send transactions for recording on the private blockchain.
- Participants can also access the blockchain through their own nodes or on a software-as-a-service basis.Private Blockchains offer advantages including full privacy of transactions, high efficiency, more effortless scalability of a business or a firm and robust network infrastructure that is resilient to issues such as cyber-attacks.
Private Blockchain example
• Hyperledger fabric
Currently, this is the most popular private blockchain. It comes packed with tons of features that can be used in almost all sectors. The well-designed permission-access makes sure that no unwanted party registers to the blockchain.
Other advantages of this private blockchain include the inclusion of a modular structure that allows plug and play for any item, fast transactions and heightened security.
• Private Ethereum
Although Ethereum started as a fully public blockchain, it has developed and introduced, on constant pressure, a private blockchain version. This blockchain is mainly for commercial purposes. It is a popular choice for businesses considering that it leverages most of the advantages of the public blockchain version while still maintaining users’ privacy.
Corda is a private blockchain perfect for sectors such as banking, real estate, insurance and the commercial industry. Since this blockchain’s development is ongoing, you should be on the lookout to check if your business can use this secure platform. Corda is an excellent security system considering that it has one of the best firewalls against cyber-attacks.
This is very similar to private Ethereum. As a matter of fact, the developers just tweaked private Ethereum to moderate some features and make it more brand-friendly. This, however, does not mean that they are the same. Quorum uses protocols and methods and privacy policies distinct from those used by Ethereum.
Top private blockchains
• BurstsIQ’s big data blockchain
This is one of the largest private database are using by doctors and patients to store and share sensitive medical information. This platform uses smart contracts that determine the kind of data is sharing to a particular audience.
• Walmart blockchain
A platform based on hyperledger fabric used to check the root of Walmart’s products. Suppliers upload authenticity certificates of the products they sell on Walmart on the blockchain’s secure ledger. Moreover, this enables the company to trace the origin of products within seconds when there are claims.
• Comcast’s blockgraph
The leader in the marketing industry that allows advertisers to target a particular audience with customized adverts. This done while maintaining the privacy of the viewers.
This is a cybersecurity blockchain for IoT companies and especially those in the manufacturing, energy and transportation industries. Manages a large pool of devices and protects the IoT companies from cyber-attack.
• Shipping giant DHL
This is the leader in the shipping and logistics arena. The blockchain maintains a digital ledger of shipment data and transactions.
In conclusion, if your business has sensitive information, you need to invest in a blockchain that allows exactly that. Private Blockchains seem to be winning when it comes to security and privacy. The choice between a private or a public blockchain is, however, a factor of the industry you are in and how you run affairs in your business.