Analysis of the landing application of private chains in blockchain

When it comes to blockchain, most people think that it refers to public chains such as cryptocurrencies. A few people think of consortium chains such as Baidu, Ali, Tencent or IBM, while private chains are rarely seen by others. Mentioned. In fact, many people still have certain prejudices against private chains, so they are not optimistic about the development prospects of private chains, but private chains still have certain application scenarios.

As the name implies, a private chain is a blockchain controlled by a single individual or organization. It is as simple as a test chain where programmers write their own contracts and deploys locally on a computer, or as complex as a blockchain application scenario within an enterprise. The scope of the private chain. A private chain is a chain that anyone can build on their own, get super management authority, and can change blocks at will. It can be said that the private chain is a fully centralized chain.

The private chain is controlled by the centralization of its block generation and other functions, so its demand for network resources is relatively low. For example, there is no need to compete for the block generation of nodes, and the block synchronization speed will be much faster, so the block generation speed It can also be greatly improved, that is, in terms of transfer speed, the private chain is actually very efficient, and can even reach the speed of the current bank or payment institution. This is also due to the small number of nodes in the private chain. Participants of the private chain are generally individuals or groups. The bookkeeper and incentive methods can be selected and changed at will. At the same time, it can mainly trace the source of data. The main application scenarios are to serve as a test chain and internal auditing of the enterprise.

Although the structure and governance of the private chain and the current public chain and alliance chain are different, and may not even be understood by many people, the private chain still has its own value. The largest application scenarios of private chains have two major aspects. The first is to verify the blockchain function of the public chain or consortium chain, and the other is the internal audit management of the enterprise.

Serving as a test chain is the biggest function of the private chain. In short, this is mainly to implement functional testing within a controllable range of the corresponding alliance chain or public chain architecture or the DAPP application developed on it. After the test is passed, The security of the application or DAPP can be guaranteed, so that the application on the public chain and the consortium chain can run stably. Since most of the public chain source code is public, a private test chain is actually built through the corresponding source code. the difficulty is not high, while the corresponding private alliance to build a chain link test by way of license, but also similar feature exists, such chains generally Ethernet Square and other main or hyperledger.

The local test chain is a link that must be carried out before the release of the DAPP or blockchain application. On the one hand, the team needs to check the function implementation, and the code needs to be internally audited after passing. At the same time, the blockchain application or DAPP When auditing third-party code security vulnerabilities, the audit agency also needs to build a corresponding test environment to simulate the DAPP runtime scenario, which is also something that must be done before the application is released.

Another application scenario of the private chain is the internal audit function of the enterprise. The reason why some companies use the private chain instead of the consortium chain or public chain is actually the protection of sensitive data within the enterprise. The consortium chain or public chain cannot in this part To do so, at the same time, in order to facilitate internal management, enterprises also have certain private chain application requirements. If we regard a large enterprise as a blockchain, then the complex departments and various branches and subsidiaries within the enterprise are nodes. For such large enterprises, corporate management is also a very important part. Financial auditing is also a matter of internal concern to the enterprise. The internal private chain of the enterprise generally belongs to the function realized by the enterprise or the purchase of the corresponding software product. Of course, there are also solutions such as Hyperledger or Enterprise Ethereum, which are generally rich in functions. The TPS is high and the scalability is also very good. It can realize more complex functions within the enterprise, such as various application scenarios such as financial auditing, material management, and business contracts.

Before the blockchain, corporate audits were generally divided into internal audits and third-party audits. In short, internal audits were internal self-examinations of the company. The internal personnel of the company exposed the internal management problems of the company through methods such as retrieving old accounts, summarizing and summarizing data, etc. Therefore, improvement strategies are proposed to promote the internal growth of the enterprise and prevent corruption and other behaviors. Internal auditing is an internal business of the enterprise. Generally speaking, the credibility of audit results is not very high, and it is only a form of internal self-inspection.

In order to gain the trust of external organizations such as banks, companies must introduce third-party audit institutions. Third-party audit institutions are composed of highly-known professional teams and companies in the society. Their tasks are mainly based on a fair and just party. The audited company provides audit reports and uses its own reputation as a guarantee. This builds a trust system in modern society. Traditional internal audits and third-party audits often cost a lot of manpower, material resources, financial resources and time, such as the financial reports of our common listed companies. In fact, these data are the results of audits. From the current financial report release date of most listed companies, such as annual reports, it is often the fastest to publish the annual report after one month. If it is slow, it may take two or three months. Obviously, the efficiency in this process will be much lower.

If we regard the blockchain as a data structure or database, then the blockchain has a large application scenario in enterprise internal information and file management. Therefore, for enterprises, if most of the functions are If they can all be uploaded to the blockchain, then the authenticity and reliability of the data within a certain period of time can be ensured. If the corresponding private chain is divided into certain permissions, then the integrity of the data can be ensured, and at the same time, the internal audit of the enterprise Or the external audit of a third-party audit institution can also improve audit efficiency.

We all know that the data uploaded to the blockchain generally has a certain degree of authenticity. Although the private chain may also have the possibility of data tampering, on the one hand, the tamper needs high authority , and most enterprise employees have low authority. Management functions, so that most of the basic business data can be true and reliable, and the other part from basic data to high-level data is also calculated by smart contracts. Therefore, in this case, it is actually more difficult to tamper with data at a higher level. For example, if you purchase 100 parts and finally ship 95 finished products, there will inevitably be 5 leftovers. If someone in the company deliberately takes 3 parts. In this case, if it is managed through traditional management software, there may be a certain opportunity for tampering. For example, it is impossible for a company to judge materials every day, so problems will only be discovered when the internal monthly inventory is taken.

And if you use the internal smart contract management of the private chain, you can completely compress the audit or internal statistics time. For example, when the internal ledger data changes, the corresponding report can be generated, and finally the manager can find out the first time. At the same time, improve the efficiency of internal audits and at the same time the contract can be fully executed, then it also means that the corresponding calculations have been completed. At this time, the third-party audit agency will also focus on data verification, rather than whether the data on the chain is falsified or not. .

It is precisely because of this that in recent years, Deloitte, PricewaterhouseCoopers, etc. have begun to study the application of blockchain, because once the enterprise uses the blockchain software they provide, on the one hand , it can protect the sensitive data inside the enterprise. Being leaked, on the other hand, it can also improve the efficiency of internal audit and third-party audit institutions, so this also greatly improves efficiency.

Of course, in the application scenarios of private chains in enterprises, in fact, blockchain also mainly involves data recording and corresponding smart contract computing functions. The real use of enterprises must also combine emerging technologies such as cloud computing, Internet of Things, 5G, etc. To be realized as a whole, and finally packaged into corresponding computer software products, so as to be quietly applied to all aspects of the enterprise.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/analysis-of-the-landing-application-of-private-chains-in-blockchain/
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