Enterprise Blockchain: Past, Present and Future
Block chain enterprise: past, now and in the future
Author: Remi Gai
Ruby Xu, Ran Wei compiler
Eight dimensional Research Institute produced the original
Block chain enterprise: past, now and in the future
Review the past I):
1) a chain block:
Blockchain was born in 2009, its first application is bitcoin. The block chain of the most simplified understanding, is a decentralized database, the parties do not trust each other can the historical data of information sharing in the case of no intermediary and consensus. In the etheric Fang as the representative of the block chain 2 can be combined with intelligent contract, realize the use of encryption from currency to inter enterprise. This makes the data can be achieved without intermediary participation, the real exchange point to point, and anyone can programming in their data. Compared with the traditional application, to the center of the application block chain based (dApp) with different infrastructure. Block chain to replace the database, intelligent contract to replace the API, see figure 1.
Figure 1: application and application to the center (dApp)
2) and the Internet revolution is similar to that of the center of the intermediary will not be replaced:
Contrary to popular opinion, we think that the establishment of the public on the chain will not replace the intermediary company. When the advent of the Internet, people have an utopian imagination, that the Internet will become a communication tool which does not need an intermediary point, can transmit text, image, and video program. But now, these services are mainly composed of Facebook, Amason, Google, YouTube and Dropbox and other Internet giants, because these giants can provide convenient and high-quality service for us.
Today, the blockchain technology enables us to transfer funds, contract, and ownership of the patent assets. Although technically these transactions can be carried out in the case of no intermediary, but the social intermediary center still need to play to guarantee the role of people. For example, if people want to block in the ownership chain transfer on a piece of property, unless there is an intermediary can act as guarantor in the transaction and to protect them in the event of a dispute, otherwise people will not have enough sense of security. According to Maslow’s hierarchy of needs, human nature is selfish, need to meet the basic needs. As our society becomes more and more complicated, the human needs of social institutions control and supervision for more and more dependent on. Although in theory, in the digital world and do not need to complete the file transfer ownership of the intermediary, but we prefer to use the center of the guarantor provides intermediary services.
Although the intermediary may be abuse of power, but the blockchain audit and non tampering can be used as an additional mechanism to control the center of the behavior of institutions and make it legally responsible.
II analysis of the status quo):
1) overview of enterprise chain:
There are a series of chain enterprises can not meet the needs of the public, the public chain allows any participants to read and write data.
Figure 2: the chain enterprises can be a private or mixed block chain
In the private and mixed chain, all participants are from one or more organizations. Is not a public enterprise chain chain, mainly by private and hybrid (Alliance) block chain, see figure 2. Some of the advantages of private and mixed chain is:
Extensible node – consensus mechanism using fewer sets and different running speed, super boundary can be increased from 7TPS to 1000TPS Ethernet fang.
Trusted members – all participants are anonymous and need to be responsible in law, so as to reduce the risk of cyber attacks.
Privacy – because enterprises can not open all the data to the public and competitors, only trusted members to read and write data.
The implementation of management and strategy more easily compared with public chain rules easier to change and implementation.
Cheaper trading without a lot of energy to maintain the distributed database transaction, only need to verify that a small number of nodes, and the nodes in the etheric workshop needs to be verified more than 13000.
No crypto currency – without involving encryption currency, because all participants are anonymous, they require no reward.
Repair – faster through manual intervention can quickly repair the fault, because consensus algorithm can provide confirmation information in a shorter period of time. With the bitcoin network two hours to confirm when compared to, can achieve “instant confirmation”.
Open supervision company and new regulations together, such as GDPR and DSCSA regulations.
On the other hand, compared with the public chain, there are some shortcomings such as enterprise chain, lack of transparency (non open source) and the limited resources for developers. In addition, the nature of the alliance, but also contrary to reduced to fragments blockchain (block chain is the original intention of the establishment of large-scale network), but increased the size of District Alliance may lead to security vulnerabilities and because of the increased node. The alliance also need cooperation, such cooperation is likely due to practical reasons it is difficult to achieve.
2) large enterprises to subvert the large industry:
Block chain technology is still in the early stages, with a lot of potential. VC, strategic investment departments and enterprises are investing will change the traditional block chain project. Examples include:
IBM Blockchain World Wire to achieve real-time clearing through the block chain and Stellar protocol, and the settlement of cross-border payments. Block chain technology can make the liquidation speed increased to 10-15 seconds from the traditional way of a few days.
IBM and Maersk set up a joint venture company named TradeLens enterprises, improve the efficiency and transparency of Global trade by block chain technology. Their supply chain management software tamper proof document can be digitized and simplify the transaction process, more efficient processes to save $180 billion per year for the society.
Finastra is the world’s third largest financial technology company, it is the release of the new product Fusion LenderComm, which is based on a syndicated loan platform R3 Corda distributed technology books, which allows agents issued loan data in the ledger, the lender can obtain relevant information through self-service platform. 2017 year (Thomson Reuters) a total of 9887 loan transactions worldwide, a total of 4.6 trillion.
OpenBazaar by a16z Union, Square Ventures and Bitmain investment, is a P2P based e-commerce platform blockchain. In 2017, the global e-commerce retail sales reached $2 trillion and 300 billion, and is expected to rise to $4 trillion and 880 billion in 2021 (Statista 2018).
3) facing the application and the current obstacles:
At present, the most popular proof of concept (POC) block chain solutions is Ethernet and R3 Fabric square, Hyperledger Corda, shown in Figure 3 and figure 4.
Figure 3: enterprise chain solutions prospect
Block chain technology in figure 4:2018 proof of concept
Because of some business and technical barriers to the enterprise, all POC concepts have not been implemented almost. In the business enterprise, it is difficult to identify the blockchain cases of high value, and from a strategic, operational and technical perspective, let the blockchain fit the demand of the enterprise is also very difficult. When the interests of the mutual competition, internal views will be difficult to unity. From a technical point of view, there are still many limitations of the chain block, see figure 5.
Figure 5: the barrier of the enterprise chain application
III) in the future:
1) technology development forecast:
Figure 6: predicting the evolution of block chain technology
By 2020, the license will start using block chain side chain chain anchored to the public.
To 2022, in order to meet the needs of the integration of private and public chain extension, mainly for public chain need consistency algorithm has more efficient Sybil resistance (for example: POW, DPOS, POS) and the data structure of the consensus protocol. (for example: Nakamoto, Avalanche, Algorand etc.). Second layer solutions will become more mature, not all nodes are required to handle transactions, but through the “offline” protocol (for example: Lightning network, Plasma, channel state) or side chain solutions (like the etheric Fang “sub chain”, Polkadot) to deal with.
By 2023, the license will be able to block the chain does not use Token as an incentive under the premise to ensure the operation of node entity is trustworthy, fair and reliable. Confidentiality of data will allow enterprises in sharing while protecting the privacy information and competitors (such as Zk-SNARK).
With intelligent contract can safely manage transactions between enterprises, transaction risk guarantee risk service will begin to help assess the transaction, and the member in charge of law on.
By 2028, a collection of extended enterprise chain will complete the chain in the public and private infrastructure on the level.
2) block chain commercial value forecast:
According to Gartner, by 2025 the blockchain commercial added value will exceed $176 billion, will exceed $3 trillion and 100 billion by 2030.
The growth of the industry will experience different stages: in the first stage (2018-2021), the enterprise will explore different applications through the proof of concept, but 80% of the application block based on chain to realize the purpose of reducing the cost of enterprise. In the second stage (2022-2026), the successful application will appear, people will return to the block chain technology in the field of confidence will grow rapidly. In stage 3 (2027-2030), the blockchain will highlight the role in society, by reducing costs and increase revenue on a global scale to provide 3 trillion dollar value, as shown in figure 7.
Figure 7:3 phase block chain market value growth
In addition, block chain applications in different industries will occur at different speeds, see figure 8.
Figure 8: the application of prediction technology industry chain block
3) growth factors:
Application of block chain growth will be affected by several factors:
Technical maturity: more mature technology to create more complex applications and practical, open and application.
Successful cases: with the introduction of application case is more influential, more organizations will use the technology.
Government policy: the development of laws and regulations may help block chain technology, but may also inhibit its growth (GDPR).
The ecological system: value chain block depends on the size of the network. With more and more companies to join the block chain network, it will create a network effect and attract other organizations to join.
Community: cryptocurrencies will remain in the society, play an important role in the growth of market confidence. With the increase of community needs, the demand will increase the blockchain.
In addition to Blockchain 2 encryption currency outside the organization application scenarios. With the evolution of Internet is similar to that in the blockchain new revolution, because human beings need to protect and Guarantee Center of the intermediary will not disappear. Private and mixed block chain can meet the needs of enterprises, to provide reliable participants for the expansion of a stronger, better privacy protection, easy management, more flexible and cheaper trading supervision.
At present, the effect of block chain is not completely clear, large enterprises and VC are also exploring many potential areas. But because of the obstacles of business and technology, there are very few companies actually deployed a proof of concept of their products.
Although still in the early stages, block chain as a disruptive technology, various industries will change radically in the next 5 to 10 years, and 2030 years for the global market value of more than $3 trillion.