From Permissionless To Permissioned: How Enterprise Blockchain Use Is Changing The Transparency Conversation
“Blockchain” has become a buzzword in the past few years, and rightfully so. This technology has already demonstrated the potential to change how we transact, store data, and exchange value. One of the most promising applications of blockchain is in finance, where it can be used to send money instantly and securely without a third party.
By design, blockchain is a decentralized solution that records transactions and data on publicly accessible ledgers to maintain immutability and authenticity. Most public blockchains, also known as permissionless blockchains, rely on distributed ledger technology (DLT) to maintain decentralization and transparency.
This new way of storing information has many benefits, including the reduced need for a third party or intermediary to validate transactions and data. This can help make processes more efficient by reducing costs and time spent on validation. Another benefit is that it allows for greater transparency in transactions because no one can alter or tamper with any of the data stored on the blockchain without being detected.
However, the very nature of a public blockchain- its permissionless, transparent, and decentralized approach - has discouraged more widespread embrace from enterprises besides the occasional addition of Bitcoin to treasury holdings.
For instance, a company that deals in financial information would want to keep their enterprise data confidential - something that’s impossible using a public blockchain like Bitcoin or Ethereum, where each network node can view records of all data exchanged on the blockchain.
Enterprises with massive customer bases demand an infrastructure capable of scaling according to their operational needs. This is a considerable challenge, especially considering that almost every public blockchain focuses more on decentralization, security, and transparency, not on scalability and speed.
A public chain like Bitcoin or Ethereum, with a transaction processing speed of barely 5 to 10 transactions per second (TPS), is in no way equipped to support an enterprise processing hundreds of thousands of transactions per second.
The “Permissioned” Blockchain Model For Enterprises
Legacy blockchain technology was never conceptualized or developed for widespread enterprise use. Accordingly, it shouldn’t be surprising that blockchain technology has struggled to find a foothold across the enterprise and corporate landscapes.
Scalability, privacy, transaction speed, regulatory compliance, and transaction fees are just a few of the inherent challenges that have punctuated the difficulty for enterprises to accept blockchain as a truly disruptive technology.
From an enterprise’s perspective, decentralization isn’t one of the features they actually want or, for that matter, need. Enterprises and organizations wish to exert absolute control over their data, and, by extension, who can access it.
Most existing blockchain infrastructure can’t be customized to fit this need. Enterprises demand better scalability, data security, privacy, and most importantly, customizability - features that can only be provided by creating a separate blockchain that is fit for enterprise use.
Instead of disparate blockchain networks - be it a private chain or a public chain, a hybrid blockchain, or a consortium blockchain - demand is growing for blockchains that can advance diverse use cases.
This is where ParallelChain Lab emerges as a capable solution. ParallelChain’s layer-1 blockchain ecosystem is equipped to overcome the challenges of existing blockchain technology, while at the same time readying support for a diverse range of real-world applications. Their blockchain can be easily configured into a public, private, consortium, or hybrid blockchain.
The performance of ParallelChain is what stands out relative to existing layer-1 blockchains suffering from sluggish throughout. The platform’s mainnet, which is scheduled to launch during the fourth quarter of this year, is set to offer throughput of 80,000 TPS at a negligible cost.
Meanwhile, the platform’s private chain, purposefully built for businesses and enterprises, delivers a balance of performance, efficiency, and cost-effectiveness. It delivers around 120,000 TPS with a 3-millisecond transaction confirmation time. Adding to the advantage over existing approaches, the private blockchain is fully GDPR compliant and adheres to other international data protection guidelines.
ParallelChain effectively overcomes the interoperability problem that poses a key challenge for the fragmented blockchain ecosystem through its “parallelism” approach. While cross-chain solutions exist, they make blockchain networks vulnerable to attacks. Moreover, since each blockchain features its own consensus mechanism, it is impossible to adopt shared validation.
By contrast, ParallelChain’s “parallelism” allows it to scale as needed while at the same time maintaining top-notch performance. Using its patented "parallel" architecture, it offers non-hackable private inter-chain communication tools to ensure unmatched security and privacy.
Since the blockchain can be configured into a private, public, consortium, or hybrid blockchain, it is extremely versatile in facilitating many use cases. ParallelChain also uses its proprietary Proof-of-Immutability (PoIM) to maintain privacy across all inter-chain communication while allowing developers to migrate their existing code from Ethereum and Hyperledger seamlessly.
Finally, adding to the value enterprises can gain from embracing permissioned blockchain models, ParallelChain has developed several other solutions to make the technology easier for widespread use. The entire network is decentralized and exceptionally environmentally friendly, offering five pre-built solutions that sidestep existing limitations.
For organizations seeking to advance their blockchain use, permissioned networks are coming to the rescue, helping grow the blue ocean of distributed ledger technology uses while delivering the sought-after features that enterprises can’t ignore.
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