Three Real-World Problems Worth Solving with Blockchain
Blockchain is no silver bullet, but here is a snapshot of three real-world challenges common to most businesses and how blockchain technology addresses them
Problem: Auditing & Compliance
Example
Business systems generate vast amounts of log data which needs to be securely stored for audit, compliance, and reconciliation purposes. The integrity of the stored logs is paramount in maintaining trust in such systems, as well as for satisfying regulatory and reconciliation requirements.
Current Solution
Logs are stored in a centralized and, possibly, mirrored database. The system relies on trustworthy human administrators to maintain the integrity of the stored logs.
Blockchain solution
An immutable and distributed data store of cryptographic signatures guaranteeing integrity, while being highly available in the face of multiple infrastructure failures.
External parties such as auditors are provided with permissioned read access to the blockchain to facilitate efficient reconciliation across multiple parties.
Value proposition
- Improved regulatory posture
- Efficient data reconciliation
- Removal of trust from possibly fallible human administrators
Blockchain deployment model
- As a private, single-owned distributed ledger
- Permissioned read-write access to intra-business units and permissioned read access to external units
- Business units run one or more nodes on the blockchain network.
Problem: Storage & Availability of Sensitive Data
Example
Critical IT systems such as firewalls and key servers are configured via highly sensitive and confidential configuration files. Maintaining the integrity, traceability, and availability of these files are crucial to continued, uninterrupted, business operations.
Current Solution
Stored as text files or as entries in a traditional and, possibly, mirrored database. The system relies on trustworthy human administrators to maintain the integrity of the stored configurations. Version control is achieved via traditional mechanisms such as software versioning tools.
Blockchain solution
An immutable, versioned, and distributed data store for data configuration offering cryptographic storage, guaranteeing integrity, and being highly available in the face of multiple infrastructure failures.
Value proposition
- Removal of trust from possibly fallible human administrators
- Immutable data store
- Distributed validation
Blockchain deployment model
- As a private, single-owned distributed ledger
- Permissioned read-write access to intra-business units
- Business units run one or more nodes of the blockchain network.
Problem: Information Sharing Across Organizations
Example
Customer on-boarding generates KYC data, which is siloed and not easily accessible to units within and between businesses .
Current Solution
Businesses, as well as the units within a business, duplicate the KYC process leading to redundancy, inefficiency, and a lack of transparency in the on-boarding process.
Blockchain solution
A consortium-driven, distributed data store that is shared securely among multiple pertinent business entities and/or among business units.
Value proposition
- Increased transparency
- Streamlined workflow
- De-duplication.
Blockchain deployment model
- As a multi-entity, consortium-owned distributed ledger
- Permissioned read-write access to intra-business units and permissioned read access to external units, which could include members of the public
- Entities in the consortium and business units within such entities run one or more nodes on the blockchain network
- The network operates without explicit consensus (as in a public blockchain consensus) but under strict a priori legal agreements among the consortium members
- Members verify and validate new data on the blockchain typically based on a Proof of Authority (PoA) model.
At Chainstack, we are helping businesses accelerate their blockchain adoption journey. Understanding where and how blockchain fits in the current scheme of business processes is one thing; but getting blockchain to work amidst a complex set of technical moving parts is another.
Our platform as a service helps businesses to build a consortium, specify an appropriate governance model, and, finally, deploy and manage their blockchain networks regardless of cloud or protocol preferences, while our ultimate blockchain control panel makes set up and configuration a breeze . In essence, we handle the complex parts of blockchain deployment and management so that businesses can focus on developing new ways of making blockchain technology work for them - just like the ones we have explored in this post.
Interested to learn more about Chainstack? Stay in touch for occasional technical and business updates via our newsletter!
