How Blockchain works
- Fault Tolerant- Blockchain is Peer to Peer system based on Distributed Ledger technology(DLT). Incase of failure of a node system will still be available.
- Disintermediation-Transactions/records kept at multiple places unlike traditional Ledger method, where transactions/records placed at centralised placed. This eliminates requirement of central trusted authority to maintain a central repository.
- Data Immutability- Transactions are append only, once these transactions recorded inside a Block, details can’t be changed, that’s why information are immutable in Blockchain.
- Consensus-Transaction are validated based on agreed consensus mechanism(Mining).
- Cryptography- In Blockchain blocks contains digitally signed transactions using Private and Public Key, make system secure.
- Blockchain Types- Public, Private, Permissioned
Client Server & Peer-to-Peer Model
- In Client server network all Systems/nodes/machines connected with a central entity/server.
- In this type of network, one system send request to server to process, server process this request and send response back to requesting system. There will always be dependency on central entity.
- server. If there is any issue with server entire system will be impacted.
- In Peer to Peer network all Systems/nodes/machines connected with each other
- In peer-to-peer models, it’s more like a gossip network where each peer has 100% of the data (or as close to it as possible), and updates are shared around.
- Each peer is more independent, and can continue operating to some extent if it loses connectivity to the rest of the network.
- Peer to Peer networks are more robust, as there is no central server that can be controlled, so closing down peer-to-peer networks is harder.
Business Need Blockchain, IF?
- Business has or Interact with multiple Databases?
- Internal & external entities access Database?
- Trust and transparency need improvements?
- Data availability will help in improving business and customer experience?
- Data Reconciliation is required due to multiple data sources?
- Planning to implement & test Cryptocurrencies, Tokens, IoT, Data Analytics? Peers implementation status of Blockchain?
If answer is yes …….We recommend business to implement a Blockchain Use Case.