Experience the blockchain early trading platform or on “Waterloo maersk”

Editor’s note This article from the start-up company Pazima co-founder Toju Ometoruwa. In order to find the TradeLens platform, although Ma Shiji IBM backing, but operators do not buy the reason, he carried out a series of investigations, trying to further explore the feasibility of private chain, in summing up the reasons of the public chain. The following is the compiler.

For months, experts have been that block chain technology can improve the efficiency and transparency of large enterprises. IBM and Mashiji cooperation is one of the most striking block chain case.

In January this year, one of the three major world shipping giant Maersk (Maersk) announced that its joint venture with IBM to establish a new international freight company. The joint venture is to use mobile block chain of new technologies such as real-time tracking of goods, and automatic processing of cross-border freight documents, to simplify the transaction cost, the global shipping network complexity and size, and improve the transparency of transactions.

It is reported that this company called TradeLens platform launched in August. Block chain platform based on the technology of recording all transactions on the network, all transactions can get the real-time data access.

More than October, or curry favour by claptrap

Block chain technology and the shipping industry seems to be a heaven-made match, but recent news that the joint venture has giant backing, but still difficult. In the 10 months after the TradeLens platform only attract Pacific Airlines international routes (PIL).

As head of the TradeLens Marvin Erdly said, this is not enough. “This is no exaggeration, with other large operators is the absolute requirement for TradeLens.”

Why most shipping companies refused to join the new system? The answer is very simple, competition. TradeLens is trying to make the arrangement for re positioning of “cooperation” to solve this problem, make it look more neutral than the first platform. But in fact, Maersk and IBM still has all the intellectual property TradeLens.

The problem is that Maersk’s rivals are worried about joining the platform can not “even keeled”, doubts for ownership of intellectual property rights. The shipping company CMA CGM (No. 3) and Hapag-Lloyd (No. 5) official has publicly refuted the solution based on block chain technology. CMA CGM general manager Peter Wolf said,

Technically, this solution may be a good platform, but should be adjusted to become the industry platform, rather than a single large Maersk and IBM. This is also a lot of block chain project weakness, every item in that it provides a control platform in the hands of the industry, and this feature obviously block chain to the center of the conflict.

The traditional centralized control organizations still need center system, which is a major obstacle to enterprise using the block chain technology.

At present, the traditional industry is facing the fundamental problem lies in its unwillingness to accept fully the block chain, the enterprise has been through the centralized structure to construct a feasible solution. In this structure, data storage, information management services have received a single center control mechanism.

The plan for the general meeting of shareholders and the Private Companies shares issued by the blockchain technology; Microsoft and IBM to help block chain technology, help enterprises to improve their supply chain processes; the traditional financial institutions to establish a distributed books license, in order to achieve a more efficient and secure transfer of funds between institutions in.

The traditional mechanism of block chain technology appears to be a positive attitude, but most of them emphasize the use of private chain only relates to internal business participants, rather than those of open, open source, free public chain permissions settings.

Therefore, similar to the TradeLens platform situation. Once competitors are not buying it, even standing on the shoulders of giants, also has the possibility of platform fall apart. For a competitive firm, although adding this “industry platform” will gain a competitive advantage, but still skeptical about the potential exploitation of the network. Although, there are general public and private chain chain, but private chain is still centralized control by the architect. It has the right to decide who has access to the network, control of IP, and may create a back door to avoid the access rules.

In this case, the reason of private chain traditional industries do not want to join rival development is obviously.

Private VS chain chain, either?

How to distinguish between “Public License” and “blockchain private license” blockchain? The main difference is that who is allowed to participate in the network. The main motivation test block chain technology the traditional industry is trying to use the technology in different departments or subsidiaries, or create a shared and distributed books can not be tampered with between the company and other partners.

Private participation in the chain nodes have limited scope, such as specific institutions in their own users, data access and use rights management strictly. Completely private block chain write access rights only in participants, read permissions can be open, can also be any degree of restriction.

Because private users decide affairs, the data characteristic does not exist can not be tampered with, which still maintain the center. Third party security efforts at the same time greatly reduced, but also the use of a token to curb the incentive mechanism to encourage more participation and network construction.

Node range compared to private Chain Co., the chain is as much as possible to cover the user, and trying to build a global community of developers. Typical applications include public chain bitcoin, etc. the global etheric square, thousands of developers and operators, through the use of the proof of work mechanism (PoW) or proof of interest mechanism (PoS) consensus mechanism to confirm the transaction.

The chain open may endanger the safety of users, but in fact, influence the private chain more vulnerable to security vulnerabilities. The high stress node only by several transaction verification can be trusted, confirm without the need for tens of thousands of nodes, so the transaction cost will be lower. But these nodes together, increase the risk of a single point of failure.

The chain is more difficult to remove, due to the chain distribution between thousands of nodes around the world, therefore need great stress to failure.

The main value chain block technology is, transaction information allows multi-party verification data, money, transportation goods, in order to prevent fraud or corruption. While private chain trading restrictions on public access, which means that the data can still be hidden in the user can query to the location, and also can modify the data.

Therefore, the wait-and-see posture of traditional institutions began to find that due to the lack of a global community as the basis, rather than using block chain technology, rather than build a huge database, use Google drive, box or other data sharing tools to realize information sharing.

Due to the current block chain also cannot handle a large number of transactions at the same time, most of the block chain suppliers do not provide compatible software, so Intel, JP Morgan and other industry giants have slowed down or even these stranded respective block chain by plan. “They want to see other people first failure — they don’t willing to make a mouse,” said Behlendorf chief executive Brian Hyperledge website. “This is the essence of enterprise software.”

The centralized organization can fully accept the public profit driven chain?

After the analysis of public and private chain chain quality problem — whether these traditional institutions open, fully accept the public chain?

The centralized organization first need to ask whether the block chain network is willing to venture into a truly open and without permission.

The internal chain creating incentives for all participants to create multi-level value, according to the contribution to obtain specific income. In order to realize to the center of the network, the public is not controlled by any chain, everyone can access, can issue a transaction request, and validated by writing the blockchain. The consensus process participants through cryptography of public security, and jointly safeguard the chain can not be tampered with, transparent. And this for publicly traded “wealth 500”, these transactions largely in violation of the law theory of competitive advantage “, and often extend or completely avoid the current management system of market rules.

Good connection between the public participating node chain, verify the high efficiency, lower cost, only need to maintain the operation, but also does not mean that private chain completely lost the feasibility. Because the private chain internal public verifier, so there is no potential risk for the 51% part verification collusion attack. However, if the private chain can exist and develop, you may need to the survival of the fittest, creating competitive relationship in private chain. At the same time, each block chain network must contain a small part of fully constrained enterprise network encoding rules.

As you can see, there are still structural similar field of traditional industries in the chain block. For example, in the blockchain protocol (EOS, NEO, Ethernet Square) also exists between the traditional free market “competitive advantage”, but in every block chain protocol, participants cooperate with each other at the same time, there are also a set of encoding rules based on the competition. These rules are not to consider each of the interests of the participants, but give priority to ensuring the healthy operation of the network.

Maybe in the future, Maersk, CMA CGM, PIL and Hapag-Lloyd that no longer hold the same shipping giant block chain solutions of discourse, and some of the smaller shipping companies can equal and independent block chain network to join. The whole industry together to develop solutions for the industry, to ensure a reasonable landing block chain technology.

In other words, in the current market system, the traditional competitive advantage still exists. Some small size of the block chain network composed of shipping company, although it is difficult to compete with the giants, but can barely stand. Under this system, the secondary and tertiary industry operators still do not give up any control on the first enterprise. At the same time, using the block chain technology can create higher efficiency and transparency in the competition, make it in a more fair competition environment in the industry.

The macro level, there are still defects facing private chain center entities (safety, resistance, lack of complete transparency review). However, from the micro perspective, as long as with the uniform encoding rules, these private chain participants still get many benefits provided by the public chain.

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