Enterprise Blockchain Protocols you Need to Know

Blockchain technology has reached a milestone where it is popular across all industries. Every enterprise is looking for ways to benefit from its decentralized nature and features that process transactions securely and privately. With blockchain being used in every industry, it is necessary to keep up with the evolution of blockchain and its protocols.

This article is to help readers gain knowledge about what are blockchain protocols, the concept of enterprise blockchain protocol technology and various platforms.

Blockchain Protocol

Blockchain Protocols are the most important components in blockchain technologies that help maintain the blockchain networks and aspects.

A protocol is a set of guidelines and rules which are being utilized to perform a specific task. To transfer the data over the internet there is a need to have a proper framework and protocols to create that framework. These guidelines and rules are compulsory for efficient data transfer. There are different blockchain protocols such as consensus protocols, and security protocols, and the combination of all these protocols is called the blockchain framework.

Concept of Blockchain Protocol technology

The following are the concepts of blockchain protocol technology used by professionals.

• POW(Proof of Work)

With the digitization of the economies and the rise of cryptocurrency, people are much more aware of the proof of work concept. It enables the recording and confirmation of bitcoin transactions in the absence of any central authority.

It is also regarded as the original consensus algorithm that is used to produce the new blocks. It makes bitcoin mining a complex task and thus miners need to compete with each other to prove the validation of the new coins and transactions.

• Distributed ledger

Distributed ledgers can be understood as a type of database which is publicly available so that anyone can check the history of transactions without any limitations. They are distributed among multiple peers and are stored in the form of a ledger so that they can be accessed at any time in the future.

• Smart contracts

Smart contracts are simply programs that run when predetermined conditions are met and are stored on a blockchain. They’re usually used to automate the execution of an agreement so that all parties can be certain of the outcome right away, without the need for any intermediaries. They can also automate a workflow, starting the next step when certain conditions are met.

Top Enterprise Blockchain Protocols

To develop a blockchain platform, it is important to know which protocols are required to create the platform. Here are some of the best crypto protocols which most enterprises prefer to choose for a secure blockchain platform.

• Hyperledger

Hyperledger is a blockchain platform developed by the Linux Foundation. Hyperledger focuses on creating distributed ledger frameworks and tools for enhancing the adoption of blockchain technology in business. Unlike other blockchain projects which opt for public blockchain systems, Hyperledger utilizes a permissioned blockchain in a bid to promote confidentiality, privacy, and security of data.

In the Hyperledger project, there are many tools and frameworks aimed at addressing supply chain problems like transparency and traceability. Hyperledger Fabric, Hyperledger Sawtooth, Hyperledger Iroha, and Hyperledger Burrow are among the Hyperledger framework initiatives.

• R3 Corda

R3 developed the Corda blockchain platform to help businesses cut costs and reduce risks by removing friction and encouraging direct transaction via smart contracts. Corda’s protocols and legacy infrastructure was designed to seamlessly interface and integrate with already existing business systems, allowing businesses to build problem-solving Corda applications for a wide range of industries.

Corda also utilizes a permissioned blockchain to provide its clients with security and avoid data breaches. The system’s infrastructure enforces data consensus among participants, making transactions faster by removing the need for reconciliation.

• Quorum

Quorum is an enterprise-ready blockchain platform built on the Ethereum network. It is a JP Morgan initiative and has been advertised as the ideal platform for running speed and throughput-demanding processes. However, this was built to address enterprise-specific challenges with regard to blockchain adoption and usage.

Although Quorum adopts a permissioned distributed ledger, the system is capable of providing transaction security and privacy tailored to suit business needs, giving its users the best of both worlds, in terms of privacy and transparency. Quorum code is an open source and welcomes the input of other developers in society.

Key features

• Network and peer permissions management
• Increased privacy of transactions and contracts
• Better performance
• Enterprise Ethereum

Ethereum presents the latest version of its software that is built for commercial use cases. Ethereum enterprise aims to increase the commercial use problems of blockchain software development. Along with Ethereum, enterprises can quickly develop large-scale applications to place another value.

Key features

• Wide scalability
• Compatible
• Data coordination
• Peer-to-peer network

Conclusion

The choice of a blockchain protocol is one of the most critical considerations to make when starting a blockchain software development project. Protocols are important because they limit the functionality that your software can offer.

It’s important to remember that the most popular protocols use very advanced technology that needs the participation of thousands of computer scientists. Using a protocol instead of reinventing the wheel will allow you to finish your project in less time and with less resources.

With huge experience in blockchain development and with a team of expert developers, Gyan Solutions offers reliable blockchain development services.