At its core, blockchain is a distributed ledger technology that offers a secure, transparent, and immutable record-keeping system. In the context of enterprises, blockchain can provide numerous benefits, including enhanced security, increased efficiency, improved traceability, and reduced costs.
Enterprise Blockchain is designed to cater to the unique requirements of businesses, offering solutions that address challenges faced by traditional systems such as centralised databases and paper-based processes.
Interoperability: why a public blockchain is best suited as an enterprise blockchain
A common misunderstanding in enterprise blockchains is that only private, permissioned blockchains are suitable for businesses. However, this is a fallacy, which we explain in detail in our eBook ‘The fallacy of private, permissioned blockchains’.
Enterprises often disregard the fact that they have to intercommunicate with other applications, services and databases as they scale. If an enterprise opts for a ‘private blockchain’ a massive amount of duplicate work will be required whenever new services are linked. As a company grows, so would the cost and effort of ensuring interoperability.
The confusion derives from a misunderstanding of what is public in a public blockchain. While sharing information publicly does not imply that sensitive data should be openly accessible, in the case of public blockchains, data signatures, hashes, and indexes can be stored to the blockchain, creating immutable records that make any tampering with the source of information evident. This approach ensures that information traces in the public domain can offer robust security and transparency for a system of records.
How Sentinel Node employs the Bitcoin SV blockchain for real-time cyber breach detection while keeping private information out of the limelight.
It is much better to have one single scalable blockchain, which is cost-efficient from the start and works at scale. Hence, the Bitcoin SV blockchain with its unbounded scalability is the best blockchain for enterprise purposes.
Proof-of-work - the optimal consensus model for enterprise blockchains
Another crucial aspect that is connected with this, concerns the consensus mechanism of an enterprise blockchain. Consensus is the process by which participants in a blockchain network agree on the validity of transactions and the state of the ledger. Enterprise blockchains require cost-efficient and fast transactions.
As every consensus model, but proof-of-work as realised in Bitcoin SV lacks either security or transaction speed or does not scale in some other way, many enterprises choose to build their services and applications on Bitcoin SV without having to worry about any fundamental changes to the protocol.
‘Governance’ and protocol changes are harmful in enterprise blockchains
Another topic that disqualifies most blockchains for enterprise purposes falls under the category of ‘governance’. Often, proponents of any blockchain or cryptocurrency try to sell governance as an advantage that allows businesses to participate in how any network should be run.
However, any fundamental changes concerning consensus model, scale or second layer solutions are highly harmful to any enterprise that relies on a blockchain as a working infrastructure for their own applications.
Therefore, a set-in-stone protocol that guarantees to never change like Bitcoin SV is a much better fundament for any application that incorporates blockchain in a substantial way in their business.
Bitcoin, stability and the decentralisation of power
Smart contracts for Enterprise Blockchains
Smart contracts are another critical feature of Enterprise Blockchain. Smart contracts are self-executing contracts that are coded on the blockchain and automatically enforce the terms and conditions defined within them.
They can automate various business processes, such as supply chain management, payment settlements, and intellectual property rights, reducing the need for intermediaries and enhancing transparency and efficiency.
The view that Bitcoin is a purely monetary transaction system is wrong. In fact, the original Bitcoin protocol is very well suited for smart contracts and Bitcoin Script is a Turing complete scripting language.
Potential use case of an Enterprise Blockchain
There is a wide range for potential use cases of an Enterprise Blockchain. Industries such as supply chain management can benefit from blockchain's ability to enhance traceability, transparency, and accountability, reducing fraud, counterfeiting, and inefficiencies in the supply chain.
Healthcare can leverage blockchain for secure and interoperable sharing of patient data, improving patient privacy, data accuracy, and consent management. Financial services can benefit from blockchain's ability to streamline cross-border payments, trade finance, and identity verification, enhancing security, speed, and cost savings.
As the technology continues to evolve, Enterprise Blockchain is poised to play a pivotal role in transforming the way businesses operate, collaborate, and create value in the digital economy. However, it is crucial to build around a blockchain that scales, as we have outlined in this article. Interoperability, unbounded scalability and ensuring that the protocol does not change are often overlooked factors in the public discussion around enterprise blockchains.