Getting Started with Managed Blockchain: A Beginner’s Guide
In this blog, we’ll explore the basics of managed blockchain services and show you how to get started with building your own blockchain network using one of the major cloud providers. We’ll cover the key concepts, terminology, and components of a blockchain network, and we’ll provide step-by-step instructions for setting up a basic network. By the end of this guide, you should have a solid understanding of how managed blockchain services work and be able to build your own blockchain network on a cloud platform.
What is Blockchain?
Blockchain is a digital ledger technology that allows information to be stored in a decentralized, tamper-proof, and secure manner. It was initially created as the underlying technology for Bitcoin, a decentralized digital currency, but has since been used in various other applications.
The blockchain consists of a chain of blocks, where each block contains a record of transactions that have been verified and added to the chain. Each block is linked to the previous block, forming a chain, hence the name “blockchain”. This structure ensures the security and immutability of the data on the blockchain.
The data on a blockchain is stored across a network of computers, which makes it decentralized and resistant to tampering. Each node in the network has a copy of the blockchain, and any new transactions are verified by multiple nodes before they are added to the chain.
Blockchains are often used to create secure and transparent systems for transactions, voting, and other applications where the trustworthiness of the system is important.
What is Managed Blockchain?
Managed Blockchain is a cloud-based service that allows users to easily create and manage blockchain networks. It is designed to simplify the deployment and operation of a blockchain network, making it more accessible and cost-effective for organizations of all sizes.
Managed Blockchain services are available on major cloud platforms such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform. These services provide pre-configured blockchain nodes, shared infrastructure, and streamlined management tools that simplify the deployment and operation of a blockchain network. This eliminates the need for organizations to set up and maintain their own blockchain infrastructure, which can be a complex and expensive process.
With Managed Blockchain, users can create and configure their own private or public blockchain network with just a few clicks. The service provides built-in security features to help protect against fraud and unauthorized access. It also includes monitoring and management tools to help users easily track network performance and manage network nodes and memberships.
Managed Blockchain is an ideal solution for organizations that want to leverage the benefits of blockchain technology but do not have the resources or expertise to build and manage their own blockchain network. It provides an easy and cost-effective way to create and manage a blockchain network, making it accessible to a wider range of organizations.
Managed Blockchain Services Vs Traditional Blockchain Development
Managed blockchain services and traditional blockchain development methods are two different approaches for building and operating a blockchain-based system.
Managed blockchain services are cloud-based platforms that offer pre-configured blockchain infrastructure and tools to simplify the process of creating, deploying and managing a blockchain network. The service provider manages the underlying infrastructure, security, and maintenance, freeing the users from the complexities of managing a blockchain network. Managed blockchain services are often suitable for businesses that want to leverage blockchain technology without having to invest in building a dedicated team of blockchain developers or managing the infrastructure themselves. Examples of managed blockchain services include Amazon Managed Blockchain, IBM Blockchain Platform, and Microsoft Azure Blockchain Service.
On the other hand, traditional blockchain development methods refer to the traditional approach of developing a blockchain network from scratch, which involves building the blockchain infrastructure, designing the consensus algorithm, and managing the network’s security and scalability. Traditional blockchain development methods require a high level of technical expertise and are often time-consuming and expensive. This approach is typically preferred by large organizations that require a high level of customization and control over their blockchain network.
In summary, managed blockchain services offer a more convenient and cost-effective way to leverage blockchain technology, while traditional blockchain development methods provide more control and customization for larger organizations.
Benefits of Managed Blockchain Service
Managed Blockchain Service is a cloud-based service that allows businesses to create, manage, and deploy blockchain networks without the need for costly infrastructure and technical expertise. Here are some benefits of using Managed Blockchain Service:
Scalability: Managed Blockchain Service provides a scalable solution that can grow with the needs of the business. Businesses can add or remove nodes as needed, allowing for dynamic scaling to match the demand for transactions.
Reduced Costs: With Managed Blockchain Service, businesses can avoid the cost of purchasing and maintaining the infrastructure required for running a blockchain network. This can save businesses significant amounts of money, as well as time and effort that can be better spent on core business activities.
Security: Blockchain networks are inherently secure, but with Managed Blockchain Service, businesses can take advantage of additional security features such as managed identity and access control, network isolation, and encryption of data at rest.
Simplified Deployment: Managed Blockchain Service simplifies the deployment process by automating many of the tasks required to create and manage a blockchain network. This makes it easier for businesses to get started with blockchain technology and reduces the learning curve for technical teams.
Flexibility: Managed Blockchain Service supports multiple blockchain protocols, so businesses can choose the protocol that best suits their needs. This flexibility allows businesses to customize their blockchain network to their specific requirements.
Overall, using Managed Blockchain Service can provide businesses with a cost-effective, secure, and flexible solution for building and managing blockchain networks.
How does managed blockchain work?
Managed blockchain is a type of blockchain implementation that is fully managed and maintained by a third-party service provider. It allows organizations to create and deploy their own blockchain network without having to worry about the underlying infrastructure and maintenance of the network.
Here’s how managed blockchain typically works:
Network creation: The first step is to create a blockchain network. The network can be customized to fit the specific needs of the organization, such as the consensus mechanism, the number of nodes, and the network configuration.
Network deployment: Once the network has been created, it needs to be deployed. The managed blockchain service provider will handle the deployment process, including creating the necessary infrastructure, installing the software, and configuring the network.
Node management: The next step is to manage the nodes that make up the blockchain network. This includes creating and managing the identity of the nodes, as well as monitoring and maintaining the health of the network.
Security management: Security is a critical aspect of any blockchain network, and managed blockchain is no exception. The service provider will implement a variety of security measures to protect the network from potential threats, such as DDoS attacks, hacking attempts, and other types of malicious activity.
Smart contract management: Smart contracts are an integral part of many blockchain networks, and managed blockchain is no exception. The service provider will offer tools for creating and deploying smart contracts, as well as managing their lifecycle.
Network upgrades: Over time, the blockchain network may need to be upgraded to accommodate new features or improved performance. The managed blockchain service provider will handle the upgrade process, including testing and validation of the new software.
Overall, managed blockchain provides a streamlined way for organizations to create and deploy their own blockchain networks, without having to worry about the underlying infrastructure and maintenance of the network.
Steps to Get Started With Managed Blockchain Service
Choose a blockchain platform: The first step in getting started with Managed Blockchain Service is to choose a blockchain platform that meets your needs. AWS offers two popular blockchain platforms — Ethereum and Hyperledger Fabric. Ethereum is a public blockchain platform that is best suited for creating decentralized applications, while Hyperledger Fabric is a private blockchain platform that is ideal for enterprise use cases.
Create a network: Once you have selected a blockchain platform, you can use the AWS Management Console or APIs to create a network. You will need to specify the network name, network type (public or private), and the number of nodes you want to create.
Configure the network: After creating the network, you can configure the network settings such as the consensus algorithm, access control, and member nodes. You can also set up a membership service provider (MSP) to manage the identities of network members.
Launch nodes: After configuring the network, you can launch the nodes. You can choose to launch nodes manually or use AWS Auto Scaling to automatically launch and manage nodes based on network traffic.
Deploy smart contracts: Once the network is up and running, you can deploy smart contracts using AWS CloudFormation templates or through the AWS Management Console. You will need to write the smart contract code in Solidity (for Ethereum) or Go (for Hyperledger Fabric).
Manage the network: With the network up and running, you can monitor and manage the network using the AWS Management Console or APIs. You can view network activity, manage access control, and perform other administrative tasks.
Managed Blockchain Service provides a fully managed solution for building and managing blockchain networks, making it easier for organizations to take advantage of the benefits of blockchain technology without the need for dedicated IT infrastructure.
Here Are the Top Managed Blockchain Solutions in No Particular Order
IBM Blockchain Platform
Microsoft Azure Blockchain
Amazon Managed Blockchain
R3 Corda Enterprise
Hyperledger Fabric
Oracle Blockchain Platform
SAP Blockchain Platform
Chain Core
Digital Asset Platform
Kadena Enterprise Blockchain.
Final Thoughts
Managed blockchain services have emerged as a game-changer in the blockchain industry, offering businesses a reliable and scalable solution to deploy and manage their blockchain networks without the need for significant upfront investments. These services provide the infrastructure, security, and operational support required for businesses to leverage blockchain technology, enabling them to focus on their core business functions.
One such blockchain development company that has been at the forefront of providing managed blockchain services is Turnkeytown. With a proven track record of delivering cutting-edge blockchain solutions, Turnkeytown has helped businesses across industries to leverage the power of blockchain for their operations. Their blockchain services include blockchain consulting, development, and implementation, with a particular focus on providing secure and scalable blockchain networks.
In conclusion, managed blockchain services have made it easier for businesses to adopt blockchain technology, and Turnkeytown is an excellent blockchain development company to consider for businesses looking to implement blockchain solutions.
