Since a public Blockchain is, by definition, visible to everyone, anyone can access the data stored on your network. Even if your personal data in transactions is encrypted, a motivated actor could obtain a lot of information about the parties involved in a given transaction from meta data or inference.
For these reasons, companies looking for ways to improve their processes and operations with Blockchain technology tend to use private Blockchains, i.e. closed or permissioned networks in which only a set of approved nodes can participate.
Using a private Blockchain allows businesses to assume that no unwanted users can access the network, meaning many security requirements are no longer necessary. Remember sybil attacks? Well, in a private network there's no risk that someone will be able to trick your network by adding a million malicious nodes.
Given the lighter security requirements, a more effective consensus algorithms can be used on private networks, making transactions several orders of magnitude faster (compare 7-15 transactions in Bitcoin or Ethereum to 1000 in Hyperledger fabric). What's more, transactions in private Blockchain networks are usually free, as the owner maintains the node fleet and there is no need to pay for things like network maintenance or associated costs.
“Datas stored as public is a test of conviction; the same in private is a role of integrity.”
A private or a consortium Blockchain platform, as opposed to the public platform that Bitcoin uses, will allow them to retain control and privacy while still cutting down their costs and transaction speeds. In fact, this private system will have lower costs and faster speeds than a public Blockchain platform can offer.Blockchain purists aren’t impressed. A private platform effectively kills their favorite part of this nascent technology: decentralization.
“Technology trust is a good thing, but control is a better one.”
Data stored is extremely secure as the miners or validators can’t be anonymous on private Blockchains. An organization pre-selects the participants and, thus, are highly trusted. Because of this, the chances of someone acting maliciously on a company’s network are much less. Also, hack or virus attacks are out of the question — which is what public Blockchains fear the most.
Blockchain technology is just one of the ways that automation and business process management promise to evolve in the near future.Blockchain enables the execution of business processes across multiple organizations where trust may be lacking.We Automate your work-flows by designing, orchestrating and governing your processes.
Rapid technological development, constantly changing customer behaviour and ongoing regulatory amendments are forcing companies and organisations worldwide to conduct a critical review of their business models and business processes. Blockchain technology presents a great opportunity to all Swiss companies needing to do this, as its distinctive characteristics – such as decentralization, irreversibility and smart contracts – mean it provides considerable support to this transformation We believe that the societal as well as the technological challenges around Blockchain can and will be overcome if all actors in the market contribute their fair share.