Read views of Infosys experts on how blockchain technology offers an unprecedented opportunity to transform the transactions of the future, how its adoption will create newer value propositions and what is required for its integration into larger IT systems.

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How various blockchain models can address different needs

The shared and distributed ledger of blockchain is great when it comes to transparency and visibility. But, this is not ideal for all companies and use cases. Companies that use conventional databases have defined user controls, thereby restricting access to data. In blockchain technology, the ledger is shared, allowing all participants to see what other participants are doing - and this is important to validate transactions.

 

Say your company wants to protect sensitive information and share only need-to-know data. Can blockchain still be used - and, if so, how?

 

In my opinion, blockchain deployment models can be tailored to specific business contexts to meet the different needs of different industries. Since a one-size-fits-all approach does not work, there are various ways in which these deployment models can be leveraged.

 

Bilateral blockchains are extremely useful in competitive scenarios such as in financial markets or when trading where complete transparency is impractical. With bilateral blockchains, you can securely exchange information in an auditable and transparent way.

 

Multi-party system blockchains are useful when participants need to share information with each other, much like a co-operation paradigm.

 

When sharing need-to-know information such as KYC documents, blockchains can encrypt and store data using a private key of the sender's node such that only the receiver can view the shared data.

 

Public blockchains have information that is visible to everyone - either all participants in the external world or all participants within a specific network. The first category is useful in situations where information must be public such as notarized documents, land/property records, collateral data, etc. The second category of blockchain (information shared only between network participants) is useful during audits such as when contract information must be recorded and enforced. But, on a simpler note, I think it also promotes transparency and trust. For instance, email exchanges can be recorded in an auditable way as proof that correspondence took place.

 

All these models are viable when there is regular communication or transaction between different parties. In cases where correspondence is infrequent, say once every quarter or perhaps on a project basis, participants can use blockchain on-demand. With this model, they can correspond while the project is under way and, once it is over, they can archive the data and close the blockchain.

 

A key point to remember is that blockchain is a valuable technology that can greatly simplify operations and promote better collaboration and trust. You just need to choose the right deployment model for the needs of your enterprise.

 

Watch this space for a glimpse into the future of blockchain technology

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