Why Should Canadian Companies Use Blockchain Technology
- Blockchain, Blockchain Canada, Blockchain technology, blockchain technology canada, Hyperledger, Hyperledger Burrow, Hyperledger Composer, Hyperledger Explorer, Hyperledger Fabric, Hyperledger Iroha, Hyperledger Sawtooth, IBM, permissioned blockchain
- March 18, 2020
Why Should Canadian Companies Use Blockchain Technology
The advent of bitcoin was a far more important event than most people realize. Not only did it introduce cryptocurrencies to the world, but it also introduced us to blockchain technology. Cryptocurrencies are digital currencies or assets that are decentralized with no central authority controlling them. Bitcoin was the first and it gave rise to thousands of others over time.
Blockchain, on the other hand, is the underlying technology driving crypto. Although it was theorized much before the arrival of bitcoin, it was bitcoin that made it happen. In very basic terms, a blockchain is a growing list of records that are secured with cryptography. A blockchain is made up of “blocks” of records, hence the name. Since multiple copies of the same transactions are kept over different locations, blockchains are highly secure.
There are many more advantages to using a blockchain. In fact, it could become one of the most prominent methods of keeping records in the future. Experts have been saying that it is a revolutionary technology capable of disrupting several industries. While the advantages are apparent, there are also some common misconceptions. This is bound to happen for technology that is as new and as technical as the blockchain.
A Blockchain Is Not Always A Crypto
Generally, people tend to think that the existence of a blockchain is completely dependent on crypto. They think that a cryptocurrency and its blockchain are one and the same. That’s not quite true. Cryptocurrency is one of the most prominent applications of a blockchain. However, blockchains can be built that do not have or require crypto for their functioning.
There are many blockchain companies already that perform important functions without requiring crypto. This provides the security and transparency of a blockchain but without having to create a token. One prominent example could be shipment tracking by supply chain management companies. This can also be seen in government blockchains recording land records. In these cases, the blockchains that are used are mostly private blockchains.
It is important to understand the difference. While public blockchains like bitcoin are permissionless, private blockchains are permissioned. It means that anybody can participate in public blockchains. However, only parties that have the authority can participate in a private blockchain. This creates a sort of a closed ecosystem. Private blockchains are created mainly by corporations to leverage the immense benefits of blockchains.
Advantages For Canadian Companies
The advantages of blockchains are plenty. Canadian companies can benefit greatly if they adopt it in their operations. There are many blockchain companies and independent Canada blockchain developers that have built cutting edge solutions. Some of the key benefits are as follows:
1. Since a blockchain is immutable, the historic data can’t be changed by malicious parties. This provides unmatched security.
2. Blocks are made only after consensus from all node operators. This creates a robust and trust-less system.
3. All the transactions can be viewed by the participants at any time thereby increasing transparency.
4. Companies can leverage smart contracts to empower their business. With smart contracts, companies can pre-set conditions of a contract on the blockchain. When the conditions are met, the blockchain automatically executes the terms of the contract. This reduces the need for the trust element.
5. Blockchains inherently do away with the need for third parties. This streamlines the operations even more.
6. All the transactions are verified by all the participants in the blockchain. This also does away with the need to rely on third parties.
7. Blockchain technologies can be applied to multiple industries. Therefore, Canadian companies dealing in transport, logistics, banking, agriculture, education, property, media, etc can all leverage it.
Hyperledger – Hub For Open-source Blockchain Tech
The developments going on in developing blockchain tech for enterprises is tremendous. And hyperledger is definitely among the leaders. Hyperledger is a global collaborative effort set up by the Linux Foundation in 2015. The collaboration includes leaders in finance, supply chains, internet of things, manufacturing, banking, etc. Their aim is to advance cross-industry blockchain technologies.
Hyperledger employs an umbrella strategy where there are multiple projects under Hyperledger. There are Hyperledger Sawtooth developed by Intel, Hyperledger Iroha developed by Japanese companies, Hyperledger Burrow, Hyperledger Composer, Hyperledger Explorer, Hyperledger Fabric led by IBM and many more. Perhaps the most exciting one is Hyperledger Fabric.
Led by IBM, this project is one of the most interesting ones in the blockchain space. The reason is simple. It makes blockchain tech easy which Canada blockchain developers can really benefit from. Fabric serves as a ‘plug and plays’ foundational base to develop blockchain tech with a modular architecture.
The real genius of this project is that it makes things like consensus, membership services, etc modular. This provides a great framework for enterprises to create their own custom blockchains that can easily scale. The added benefits of speed (something like 1000 transactions per second or more) is pretty impressive as well.
Fabric works great for enterprises as it provides them with a great degree of flexibility in regards to permissions. They can make their entire blockchain permissioned or only particular parts of it. Contrary to popular belief, blockchains can be centralized as well. If the enterprise has complete control over it, they can use it better to serve their objectives.
IBM is already using Fabric in a variety of projects. It also uses it to collaborate with many other business partners. Canadian companies can do the same. It really doesn’t get easier than this. Given the many benefits of blockchain technology, it only makes logical sense to use it for their businesses. Many years down the road, it could prove to be one of their best decisions.
Be sure to also read: Revolution of Blockchain in the transport sector
–Why Should Canadian Companies Use Blockchain Technology