How Blockchain works
- Fault-Tolerant- Blockchain is Peer to Peer system based on Distributed Ledger Technology(DLT). In case of failure of a node, the system will still be available.
- Disintermediation-Transactions/records kept at multiple places unlike the traditional Ledger method, where transactions/records are placed at centralized places. This eliminates the requirement of a central trusted authority to maintain a central repository.
- Data Immutability- Transactions are append-only, once these transactions are recorded inside a Block, details can’t be changed, that’s why information is immutable in Blockchain.
- Consensus-Transactions are validated based on an agreed consensus mechanism(Mining).
- Cryptography- In Blockchain blocks contain digitally signed transactions using Private and Public Keys, making the system secure.
- Blockchain Types- Public, Private, Permissioned
Client-Server & Peer-to-Peer Model
- In the Client-server network all Systems/nodes/machines connected with a central entity/server.
- In this type of network, one system sends a request to the server to process, the server processes this request and sends a response back to the requesting system. There will always be a dependency on central entities.
- server. If there is any issue with the server the 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?
- The business has or Interact with multiple Databases?
- Internal & external entities access Database?
- Do 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 the answer is yes …….We recommend the business to implement a Blockchain Use Case.