The decentralised nature of blockchains and private identity of users may not be the right solution for a business despite the immutable, and practical nature in which transactions can be recorded. In these use cases, Rebellious takes the concept of blockchain technology and creates a network that can be tailored to the needs of a company, be it centralised, decentralised, permissionless or permissioned.
BLOCKCHAIN TECHNOLOGY DOESNT HAVE TO BE ENTIRELY PUBLIC
Bitcoin is responsible for popularising blockchain technology by utilising a public, permissionless blockchain network. Any connected user can view, or update transactions on the ledger for verification. There are no predetermined requirements to join the network, and their identity is protected via the use of public and private keys.
While it is possible to trace the recurring use of public keys and thus establish a connected list of transactions, there is no way to identify who permitted said transactions. This is one of the most significant advantages of a public, proof of work blockchain; however, for industries like the financial sector, complete anonymity is counterproductive.
The same challenges can be found replicated across numerous use cases and a variety of business sectors. There is, however, several ways the efficient and highly secure characteristics of a digital ledger can be utilised in these scenarios. By defining the level of control specific groups of users have access to, it is possible to incorporate blockchain networks on a significantly greater scale. Widespread adoption of the technology is not only increasingly likely but highly desirable.
RUNNING A PERMISSIONLESS BLOCKCHAIN
Examples of permissionless blockchains include many current iterations like Bitcoin or Ethereum. In these examples, the decentralised ledger can be accessed by any user, giving them the ability to submit transactions to the network without needing specific permission. Their transactions still need to be legitimate and adhere to algorithmic requirements to become verified before being recorded on the blockchain. Every user maintains their own copy of the decentralised ledger enabling them to read blockchain data.
Typically, permissionless public blockchains utilise a proof of work consensus; however proof of stake is becoming increasingly popular with newer blockchain networks. Users must make a deposit that is secured against the network to ensure one true ledger is maintained. The ecosystem of public, permissionless blockchains, relies on a crypto token value to be sustained as a means of encouraging miners to take part in block activities thus maintaining the stability of the network. A downside is networks of this nature can be influenced by external factors, causing potentially huge fluctuations in token value. This can put off investors and business from taking part in the blockchain because of the variable reward for doing so.
THE BENEFITS OF A PERMISSIONED BLOCKCHAIN
Permissioned blockchains differ in one critical aspect. The users able to connect to the network are predefined, having to meet particular requirements, and their identity is known to the network. Permissioned blockchains can be both public or private; however, typically they are privately maintained. For businesses operating an internal, private blockchain significant advantages present themselves.
The company or organisation running the blockchain has the ability to change the requirements of the blockchain easily. Although not a necessity, these changes can include; blockchain rules, balance totals, or transaction records. However, because the ledger is a record of all activity on the network, these changes would still be recorded, providing a digital trail of activity. For businesses operating in the financial sector, having an auditable trail that can be accessed by regulatory bodies with specific user rights, is the ideal solution. They gain the increased security of a blockchain network, at a substantially lower resource cost than current systems, while still adhering to legal requirements.
THE ADVANTAGES CONTINUE
Additional benefits include allocating validators, preventing the risk of attack. On a public blockchain, if over 51% of miners colluded, it would theoretically be possible to alter the blockchain and allow the authorisation of fraudulent transactions.
Moreover, because nodes are known to the network, transaction validation comes at a lower cost and a significantly faster verification rate. In most cases, those nodes selected are fewer in number with greater computing power. Each transaction does not have to be verified by every node on the network where unknown variables can slow down or delay transactions.
Finally, greater controls of permissions allow a private blockchain to remain private. They provide a greater scope of control. In the example of the financial services, customers would take the role of network users. However, in this scenario, you wouldn’t want them to be able to read other users transaction history. Private, permissioned blockchains allow you to control the visibility of all elements.
REBELLIOUS WILL TAILOR BLOCKCHAIN NETWORKS TO YOUR NEEDS
Either type of blockchain network has specific uses depending on the scenario. It is important that each example is viewed equally, as either is a viable option. One solution is not superior to another; it merely depends on the requirements of the user or business and how customisation of a blockchain can fulfil the purpose needed.
That is where Rebellious excels. To capitalise on the success, security, and immutable ledger that blockchains provide, Rebellious can cater blockchain requirements to the needs of a business or organisation.
By doing so, it is possible for companies to have a blockchain with a token that is unhindered by external factors. Permission rights, token value, blockchain participants, network requirements, every aspect can be tailored to required needs. The token itself can be moulded to fulfil whichever role is needed, be it a voucher, stamp, ticket, coupon or casino token. For each client, a detailed understanding of their requirements, and an extensive consultation process will ensure complete technical support to help not only set up the blockchain but provide back-end support regardless of the network requirement.
Rebellious is bringing the technologically superior abilities of blockchain technology to mainstream markets.