With the ever-growing digital technology, the question that comes to mind is about the safety of our hard-earned money. Well! A private blockchain is the answer to the complete safety of your finances while exploring digital assets. The best feature of private blockchain is that this decentralized distributed ledger has control with a single entity, as it is operated by a single entity. A private blockchain is far more secure than a public blockchain, as it maintains complete privacy while ensuring who can view or create data. One of the major advantages of using private blockchain by organizations is its ability to keep the data secured while enhancing efficiency, privacy and saving costs. Also, private blockchains can be personalized as per the requirements.
Understanding Private Blockchain
It is important to understand the functioning of private blockchain. This decentralized and distributed digital ledger is one of a kind, as it operates in a restricted ecosystem and the system can only be accessed by a few trusted participants. Businesses and organizations find private blockchain to be more secure and safer as compared to the public blockchain. In private blockchain access to sensitive data is given to a few trusted people and this keeps the data safe. This feature makes private blockchain to be an integral part of different sectors like- healthcare and medical, identity management, real estate, insurance, finance, government sectors, supply chain management and others.
How to Create a Private Blockchain
The steps that you can follow to create a private blockchain platform for better security and efficiency are:
Purpose- It is important to understand the purpose and requirements of a business organization, as this makes it easy for the development team to provide the most suitable blockchain option.
Consensus algorithm- A consensus algorithm is chosen by the developers according to the requirements of the business organizations. Some of the options available are DPoS, PoA and PBFT.
Networking- A network is formed with participants who are authorized and serve as nodes and validate transactions.
Blockchain platform- Now it is time to choose the right private blockchain platform for your business. You can make a choice among different private blockchain platforms like Corda, Quorum or Hyperledger Fabric depending on your requirements.
Smart contracts- Smart contracts are a major part of the private blockchain platform so creation and deployment of smart contracts must be done with care, as it helps in automating processes.
Implementation and testing- For 100% privacy of data there is a requirement for robust encryption and once it is done the next step is testing. Testing must be done to check for proper functioning without any fault.
Deployment and maintenance- Once everything is well tested, the private blockchain network can be deployed. You can keep a check and further work on maintenance and updates.
Examples of Private Blockchain and the Use Cases
Several industries are using private blockchain for their business. Some of the leading sectors that are using private blockchain are healthcare, identity management, insurance, supply chain management, finance, real estate and others. The topmost private blockchain examples that are being used by different industries are-
- Hyperledger Fabric- It is majorly used for supply chain management to smoothen the supply chain operation.
- Quorum- It is used by financial organizations to maintain privacy and security. This is how quorum is putting away the old financial platforms.
- Corda- It is usually used by financial organizations.
Advantages of Private Blockchain
To run a successful business there is a requirement for private blockchain development, as it increases scalability, security and efficiency while maintaining privacy. Some of the advantages of using private blockchain in your business are-
Privacy- Private blockchain allows organizations to share only limited information with the participants while keeping the rest of the information absolutely safe. Private blockchain allows organizations to keep control over the privacy of the data according to their requirement.
Scalability- To enhance business performance, organizations can opt for private blockchain, as it provides flexibility to meet the requirements of the businesses. Private blockchain supports scalability that in turn enhances the business efficiency without putting a pause to the ongoing operations.
Security- Public blockchain might not provide you 100% security but private blockchain will provide you the same. Private blockchain provides complete security because it limits participation in turn puts away the risk of unauthorized access. Participants have to undergo verification and this helps to safeguard the data in every aspect.
Transparency- Private blockchain is successful in creating a shared ledger that cannot be damaged. Also, it provides the same information to everyone in the network and this helps to maintain complete transparency.
Efficiency- Private blockchain puts away intermediates that help in cost saving and the complete process takes less time, as it is less time-consuming. A process supported by private blockchain is quick without any failures and helps enhance overall efficiency.
Operating of Private Blockchains
Private blockchains are similar to public blockchains decentralized and distributed ledgers just that private blockchains provide access to a limited number of participants keeping it private. Access to a few participants secures the data, as everyone cannot access the network. Sensitive data that needs to be kept confidential from public access must use a private blockchain to ensure 100% data security and privacy. Consensus algorithms are an integral part of the private blockchains that support quick transactions and better data processing. These all qualities of the private blockchain make it a better option than the public blockchain.
Business organizations usually have a requirement for better efficiency, scalability, transparency, security, and overall business growth. A private blockchain is capable of meeting all the requirements while specializing in providing the best privacy. Businesses have started adopting private blockchain for their business functioning, and this is a reason why so many sectors are using this technology. Private blockchain is the latest technology that is helping businesses to survive in the competitive digital age. So, if your business needs are the same, then opting for private blockchain is a wise decision, as you will surely witness the smooth functioning of your business with the assistance of a trusted blockchain development company.