Baseledger Network: A Secure Blockchain for Enterprises

Published in

Coinmonks

6 min readSep 20, 2021

“Baseline Protocol”, a term that we often get to hear these days, is an “Ethereum for Enterprises”. The enterprises that need to use blockchain technology without compromising their data on public blockchains are now opting for Baseline Protocol. A Baseledger is a public-permissioned blockchain for running this protocol and is governed by the Baseledger Council. Often called “Architecture of Architectures”, the Baseledger Network acts as a Mainnet for the baselining services of enterprise organizations. A collaboration of two companies, namely, Unibright and Provide, Baseledger works on the Proof-of-Stake consensus mechanism that integrates off-chain systems (that run off of the blockchain) such as Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), and their applications like Microsoft Dynamics. Due to its low cost and high performance, it is useful in applications where other Proof-of-Stake networks fall behind.

Scope of Baseledger for Enterprises

The Baseline Protocol uses public blockchain and Baseledger acts as its Mainnet or a common frame of reference. It supports the open-source Decentralized Finance (Defi) systems that run on Ethereum. Apart from Defi, it is also known to act as an underlying ledger technology that supports other global finance multichain systems like Bitcoin and Ethereum. It provides an all-in-one system for consensus, integration, storage, and configuration. It also helps in coordinating leaf-node consensus mechanisms. Companies can use it to facilitate processes like workflow exit and tokenization (turning sensitive and meaningful data into a string of characters called a token). It also aids in maintaining privacy-preserving workflows (for protecting the confidential information of enterprises) and roll-ups with zero-knowledge(Zero-knowledge means one party knows the other party owns certain information but does not know about the information itself).

Acts as a Mainnet for Baseline Protocol

Baseledger carries the capability to baseline for enterprise-supporting mainnet where it provides a tamper-resistant, always-on state machine that can be viewed by anyone. The Baseline Protocol is built upon a public blockchain without the need to reveal private business data of the enterprises and keeps it off-chain to ensure safety. Baseledger, as a mainnet for Baseline Protocol, supports a unified architecture that is crucial for baselining standards. Being industry-agnostic, the Baseledger can be used by enterprise organizations across several verticals by using consensus mechanisms. This way, it acts as the right mainnet that can work on a big scale across a multitude of businesses. The network acts as a use case for the “UBT token” (Universal Business Token provided by Unibright) and is staked by workers for node operation and right-to-do work.

Benefits of Baseledger

Low Transaction Costs: The transaction costs are greatly reduced in baselining supported by Baseledger. In traditional public blockchains, the transaction costs are derived from the computational power of miners and miners can prioritize the transactions that pay a higher gas fee. So, in the case of high network activity, the gas fee also gets raised. In baselining, on the other hand, the network nodes are already known and so there is no need to have a transaction cost to prevent a DDoS attack. As all the validators are already known, there is no need to have high computational requirements to carry on the processes smoothly. The Baseledger Network sets the transaction fee for a predetermined amount of time and uses this fee for activities other than transaction validation. Apart from utilizing the fee for rewarding the miners, a part of the fee can be utilized for carrying out other projects on the network.

Carries All Leverages of a Blockchain Network: Baseledger, like a public blockchain, has all the advantages that a blockchain has: it acts distributed ledger that accepts different cryptocurrencies. It is immutable and carries a strong consensus mechanism to ensure the security of the network. It helps enterprises run their system processes with transparency across business ecosystems. This raises the level of efficiency of the multiple processes with no single point of control.

Retains Features of a Blockchain: With Baseledger, the enterprises can retain their business models and the efficiencies across business processes are retained by using decentralization implemented at the architectural level. It utilizes the underlying value-transfer technology (transfer of cryptocurrency). In addition to that, like blockchains, Baseledger helps enterprise organizations perform record-keeping initiatives such as storage and usage of records.

Improves Performance: Baseledger is based on a consensus mechanism called “Tendermint”, which makes sure that nodes are fully synchronized. Tendermint utilizes Byzantine Fault Tolerance (which means how many malicious nodes a network can tolerate for reaching a consensus) and therefore, overcomes the challenges posed by the Proof-of-Work and Proof-of-Stake mechanisms of a blockchain. In a Baseledger, the governing council decides the nodes that can become validators, and these validators need to abide by the legal framework set by the governing body. This ensures accountability and hence improves the performance of the network. As node validators are already known, any malicious behavior is kept in check by penalizing the nodes in the network.

Ensures Data Privacy: Nodes in a Baseledger Network make sure that the sensitive information of the enterprise entities is kept off-chain, thus making it difficult for any network participant to have access to it. The data transactions are encrypted and the relevant key is kept off-chain. Whenever required, the keys are used to decrypt the information. The nodes can delete the key on request from the owners, thus maintaining data privacy. As the keys used for encryption can be deleted, it becomes impossible to access that data.

Testnet is Live!!

With the Baseledger testnet becoming live on September 1, 2021, the wait for many companies seeking baseline-compatible projects is over. In the words of Andrei Semonov of CONA,

“CONA has been working with Provide and Unibright for the past year on the Baseline Protocol. I am excited to see progress on Baseledger and to be one of the first node operators on the testnet.”

Another company, ConsenSys Mesh, announced that it will work with Unibright and Provide to utilize the capabilities of the Baseledger Network. These three, along with CONA and several other sponsors are going to organize an “EthAtlanta 3.0” hackathon (named “the Ethereum event for enterprise”) in the first week of October this year at Atlanta Tech Park.

As more and more companies are joining hands for baselining their projects, the future of Baseledger and the underlying Baseline Protocol seems bright.

To know more about private, permissioned blockchain networks for enterprises, click Hyperledger Fabric and Hyperledger Besu.

Visit giantsofcrypto website to read more articles on blockchain technology.

Join Coinmonks Telegram Channel and Youtube Channel learn about crypto trading and investing

Baseledger Network: A Secure Blockchain for Enterprises

Scope of Baseledger for Enterprises

Acts as a Mainnet for Baseline Protocol

Benefits of Baseledger

Testnet is Live!!

Also, Read

Written by Anuradha Malhotra