Cutting through the blockchain complexity

Photo by Nina Ž. on Unsplash

Pushed by the vision that Blockchain applications will scale only if developers and companies can use the technology easily, we are building Rockside, a blockchain service provider solution to simplify the implementation and the operation of the network. It’s time to cut through the complexity which is embedded in the blockchain.

The difficulties of dealing with Blockchain technology.

In mid-February, the MIT Technology Review published an insightful article from Mike Orcutt where he presented and explained the technical issues Blockchain is currently facing. In his essay, he highlighted how one of the Blockchain core foundations can also become an important point of weakness. “Because transactions on a blockchain cannot be undone, deploying a smart contract is a bit like launching a rocket, the software cannot make a mistake.”

Hence, it is a huge responsibility to shoulder for many developers.

So, why Blockchain?

We should admit the fact that it is not always easy to explain to someone what is so revolutionary about blockchain. So, let’s make it simple. A blockchain is a ledger of transactions which is distributed in a peer-to-peer network. All the transactions are signed by a cryptographic system. To validate the registration in the ledger, a consensus mechanism, that was defined at the creation of the blockchain, is applied by the various participants (represented by computers). This builds collaboration and trust between the participants.

On the Blockchain, Digital media called “tokens” are used and can easily represent any tangible asset. These tokens can be split, making them more liquid and simpler to exchange. Another killer feature, on certain types of Blockchains, is an executable contract (the smart contract on Ethereum or chaincode on Hyperledger) that can automate a complete process when the execution requirements are met. This automation streamlines the transaction process between different stakeholders, accelerates the execution and reduces the possible defaults.

Now, think of the huge number of transactions made every day, which are long and quite often costly to process, you can envision the tremendous potential of Blockchain.

The promising potential

Even though in 2018, a general mistrust appeared around the ICO, dramatically disturbing the cryptocurrencies markets, companies are still continuing to explore Blockchain capabilities and global spending is eventually going to increase in 2019.

Today, Banks and more generally the finance industry which was supposed to be disrupted by Blockchain and the crypto world, are advocating for its development. According to the last Worldwide Semiannual Blockchain Spending Guide of the research firm IDC, the sector represents the largest investor, leading with around 38% of the total spending (USD1,1Billion).

Global spending market share for the Finance industry

A paradox? Not really. We can see in this situation a raising awareness that the trust model is shifting (centralised to decentralised). The Banking system needs to evolve quickly, collaboration and transparency are the right way to embrace the future, notably in this industry where trust was questioned for a while.

In its study, the research firm also predicts that the implementation from POC to real products will happen more rapidly. The spending will mainly help acquire more technical capacity, services and software, to develop these new solutions. In the upcoming years, we are going to see booming companies gathering around consortium, where collaboration will be key to bring common standards to the blockchain space:

“the future state of the blockchain world relies on collaboration and building bridges between organizations and communities.“

So, how can Rockside support this new era?

Rockside is a blockchain service provider that dramatically simplifies the implementation and the operation of the network. Not a tier application like many blockchain SaaS models, Rockside is tailored for on-premise deployment using the company infrastructure (including private cloud) and ultimately in compliance with the IT requirement. By supporting companies in creating their own gateways (known as nodes), we believe Rockside is the right way to build services on top of Blockchain.

In addition, we provide services to ensure the security of the infrastructure and monitor the network.

Now, let’s imagine a consortium pushed by different banks in order to help them accelerate the payment of letters of credit in international commerce (I know this sounds really real ;))

To build their consortium, some banks might decide to join an existing Blockchain network and delegate the management of the whole infrastructure. Basically, it is adding an intermediate entity and the banks are not fully in charge of their operations. What would happen if the infrastructure fails? The banks may not be able to directly undertake any action.

On the other hand, with Rockside, each member would become a real player on the consortium and be completely autonomous from each other. And on top of that, it would take only a few minutes to get a consortium up and running. (see more on GitHub).

A good way to secure the network before building the application layer.

So, if you want to find out more, we recommend trying out the product yourself! An Early Access is available here (for non-commercial use). We will be very pleased to get your feedback.

Let’s keep in touch!

The Blockchain Studio Team

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