Private blockchain development

Blockchain is a continuous chain of data that stores information about all transactions made by network participants.

If at the beginning the prospect of this technology was in doubt, now it is used by the world’s largest companies, including Microsoft, PayPal and Intuit.

According to the international consulting company Accenture, blockchain will become an integral part of global capital by 2025.

In this article, we will talk about what a private blockchain is, how it differs from the public one, and what opportunities it opens up for business.

The blockchain works like a distributed digital ledger that stores data in a single chronological sequence simultaneously on hundreds and thousands of devices connected by means of cryptographic evidence. Due to this, the network is able to provide a high level of security in unreliable conditions. This is an important but not the only advantage of the technology. If you have made the decision to use blockchain in your business, you can get:

• One trusted source of data. All members of the network link to the same source of information, which is extremely important in the fields of health and finance.
• The speed of transactions. All transactions within the network are performed in a matter of seconds.

• Minimization of commissions. Blockchain makes it possible to conduct mutual settlements without intermediaries such as banks and payment systems that charge a percentage for transactions.
• Complete confidentiality of data. Hacking the network is possible only in theory, and for this you need to simultaneously access all blockchain devices.
• The ability to work safely with unreliable partners. Blockchain algorithms cannot be bribed or circumvented in any way. Therefore, you can enter into transactions with little-known or unreliable partners through smart contracts, without the risk of being deceived.

Each of the types of blockchains has its own advantages, but it is impossible to single out a higher priority option from them, since these are completely different technologies. However, they are defined by a number of key functions:

• Immutable and sequential data register. For a network to be defined as a blockchain, it must have a structure of a chain of blocks, each of which has a direct connection with the previous one.

• Peer-to-peer network of peers. Each user of the network has his own copy of the blockchain on his device and is called a node. Such participants can interact directly, without resorting to the services of any intermediaries, in the peer to peer format.
• Consensus mechanism. When adding new data to the blockchain, the operation is coordinated with all the nodes in order to achieve a comprehensive agreement – consensus. This prevents false or erroneous data from appearing in the chain.

Public blockchain

It is a public data chain where anyone can view transaction history and join block validation.

Such a network does not have a single regulatory authority, and its efficiency is achieved through protocol updates that prevent harmful changes.

Private blockchain

Such a network works differently. It is not decentralized, since it is managed by one organization, which determines which of the participants can view transaction data and add information to new blocks. At the same time, the network remains distributed and stores block data on node devices, which makes it resistant to hacking.

Private blockchain is a great solution when a company wants to maintain control and keep data confidential at the same time.

• The ability to control. The centralized body of a private blockchain can set the rules of the game: open and close access to viewing and editing data unilaterally, which may be necessary to ensure the security of the system.
• Non-publicity. Transactions within such a network are not in the public domain, and only select nodes can see information about them. Therefore, companies can keep their trade secrets.
• Profitability. In a private blockchain, there is no need to mine new coins, so the enterprise will not incur extra energy costs.

• High speed of work. The throughput speed of private blockchains is significantly higher compared to public ones, and is limited by the bandwidth of the weakest node.
• Less likelihood of cyberattacks. The company can only use trusted nodes, so the risk of attacks is minimal, unlike public blockchains.

Blockchain technology makes us look at the issue of data storage and transmission from a different angle. A private network helps businesses create reliable storage of information, significantly increase productivity and accelerate development through the use of innovative technologies.

AVADA MEDIA has hands-on experience in developing private blockchains.

We develop and launch scalable networks, smart contracts, applications and integrations that are customizable for a large number of tasks. This creates all the conditions for the growth of the company.

Private networks are the future of modern business, and we know how to adapt this technology to the needs of any field of activity.