There are so many use cases of consortium blockchain. Starting from supply chain to organizational data management everything falls under their territory. Let’s take a closer look at them, shall we?
Financial Services
We are going to start with the most familiar blockchain application – the financial system. To make an economic system work we need to follow two rules strictly –
No double spending.
Zero forgeries.
If a system can’t follow these two rules, then that system can’t be trusted and would exploit common people’s money. This is a scenario that we see with the typical centralized banking systems. Hackers or rough workers can hack into the system and then make modifications accordingly.
To fight this scenario, a decentralized ledger system was introduced. But that too comes with a bit of a flaw. The ledger system is public domain, and this makes any information added on the network a public property.
Even though people can’t change the information, but they still can see what transaction was made and other sensitive information. If banks want to work in this environment, they would have privacy issues.
In this regard, blockchain consortia would work best. This network can utilize the two basic rules and also provide the privacy level needed for sensitive information. This way, no one would have to deal with the trust issues of centralized authority and still enjoy the decentralized like nature.
Insurance Claims
Streamlining insurance claims can be another use cases of consortium blockchain. Basically, people have to deal with a lot of paper works when it comes to claiming insurance. Also, in specific scenarios, the process takes too much time that could cause more issues.
For example, in hospitals when a particular patient has a health issue and needs emergency surgery, claiming the insurance for that could put him in a life risk. If the hospital and insurance companies can unite in a network where they can exchange the information without any hassles, then it would be easier to handle.
This type of scenario also demands a safer network as they are dealing with sensitive, confidential records of the patient. Federated blockchain, in this case, can unite these two type of institutions and give them the security they need.
Not only healthcare but other insurances claims would be more streamlined in this aspect maintain privacy concerns. So, you see, you will be able to get a much faster and safer output if you use federated blockchain.
Multiparty Aggression
This is another great use case of consortium blockchain. Blockchain application deal with a storage issue when there is too many information in the database.
If enterprise-level organizations want to utilize conventional blockchain technology, they would require a greater storage facility. In this case, federated blockchain offer multiparty aggression.
But what does it do? Well, through this method the organization under blockchain consortia would be able to exchange information based on their customers.
Let me give you an example. Imagine that two banks A and B have the same customer under them. They both require authentication information to provide access to the user. However, storing this information separately would require and waste a lot of space. So, what they can do here, is combine the redundant data and exchange it whenever necessary.
This way they are saving a lot of storage and fully utilizing the storage space.
You might think about how much storage can they possibly save? Well, when it comes to one or two customers, it won’t make a difference. But imagine it for 1000 customers. The amount of redundant data would be huge. Using multiparty aggression is this scenario will save a lot of space and time.
Supply Chain Management
Managing a supply chain is one of the basic requirements of any organization that deals with goods. Seeing that every process is on the spot and tracking the goods until it reaches the customer is a tremendous blessing.
The problem with supply chain management occurs in the transferring process. Even if a luxury good gets manufactured from the authentic company, there are several intersecting points where it can get altered.
The companies are currently fighting with this kind of service disruption so that the consumers get what they pay for here. Not only that but maintaining the overall creation of a luxury good is also necessary.
So, why not just use a typical blockchain platform? Well, the problem is with confidentiality. Many consumers do not want their documentation of billing to get put in front of the public eye.
It’s an obvious demand and something that the enterprises need to honor. So, the typical public blockchain can’t get used in this regard.
But what about private blockchain? Well, private
blockchains aren’t that secured as of federated blockchain examples. On the other hand, if one company buys goods from another, the process can get much more comfortable if they work in a single network.
This is how they can all track and manage the supply chain without any third party invasion. Supply chain management can be one of the best use cases of consortium blockchain so far.
Organizational Records Security
Use cases like these are much in need regarding big enterprises. Security breaches are no longer a rare event. Almost every multinational company has to deal with this mess one way or another.
Also, the costing of maintaining the level of security needed is tremendously high. Even so, many companies are not able to deal with the problem. Blockchain does provide an excellent solution to deal with it, as the network has a great load of security.
However, again we come to the issue with privacy. These organizations require privacy at its best, but public blockchain application can’t do that. So, won’t enterprise level companies ever use this new technology?
Well, if they work with federated blockchain, they can surely achieve the level of security without any hassles. Federated blockchain examples are much secure that private blockchains and they provide privacy along with it.
That’s why organizations can leverage the distributed ledger system here and keep their records safe. The best part is that the costing for keeping all their data here would cost them much less than a separate database.
Also, as only a handful of nodes will have access to the network no one can actually exploit the documents without alerting others. This is how you get both security and decentralized system at the same time.
Comments
Post a Comment