DeFi Defining the Blockchain Trends 2020

Today the Financial sector contributes on an average of about 15-20% of GDP globally. The Financial markets drive the global economy but if we analyze the way the world has changed in the last three decades, the underlying infrastructure of the traditional financial markets has not been able to keep pace with it. It is still largely centralized and accessibility is a major challenge. On top of it, the lack of transparency has led human greed to find loopholes in the ever-burdening regulatory regime resulting in global crises like the 2008 financial meltdown.

The Fintech revolution in the last 15 years has enhanced the accessibility to the financial ecosystem but it is still insufficient and rife with its own set of challenges. The underlying infrastructure is still centralized and inefficient to cater to the global population. The users do not have control over their money and have to deal with expensive financial services, whether it be remittances, borrowings, or investing.

Then came the Bitcoin with underlying Blockchain Technology that decentralized the payment industry. The first time, it was possible to transact from peer to peer without any intermediary in a trustless environment. Payments being the heart of financial services, it was a matter of time before the decentralized economy expanded to other financial services like lending, investing, derivatives, etc. Now there are various startups who have forayed into multiple areas of finance to empower the financial economy with accessibility, decentralization, and efficiency in terms of speed of settlement and cost.

DeFi or more aptly called Open Finance

Decentralized Finance (DeFi) refers to democratizing the financial ecosystem using the decentralized, non-custodial infrastructure. It covers all the tenets of financial ecosystems like borrowing and lending, exchange and trading, investing, and risk management. It is a huge move from the current closed financial economy to open finance, making it available to the millions of underbanked or unbanked populations. Since the existing DeFi apps and protocols are completely decentralized, the term “Open Finance” seems to be used alternatively.

The Key Characteristics that Define a DeFi Concept or Product are:

  • Open Source: The DeFi smart contracts are open source and available for anyone to audit and collaborate for innovation. This makes them composable so that different modules can be joined in various combinations to produce innovative products fit for varied user profiles or use cases.
  • Interoperability: Today, the asset management in the DeFi ecosystem is largely restricted to one Blockchain network like Ethereum. Interoperability allows the networks to work together so that overall liquidity is enhanced and the user has more flexibility.
  • Programmable: The DeFi apps and protocols are governed by code written in smart contracts. The business rules, permissions and transactions are secured by smart contracts bringing trust and transparency to the financial system.
  • Accessibility: The DeFi apps and protocols are available to all without any bias. You just need a phone and internet connection to join the DeFi ecosystem and use it. There are various start-ups working in the area of usability so that anyone can interact with Blockchain protocols without the complexity of cryptographic keys and gas management.

This open finance paradigm offers multiple distinct advantages over traditional finance:

  • First, the users take control over their assets without any centralized risk.
  • The business rules and logic are w in open smart contracts that allow any user to audit the rules.
  • The DeFi allows global outreach. Any user from anywhere can join the DeFi ecosystem and start using the applications/services.
  • The DeFi protocols are open allowing you to combine the products of value to create an entirely new product. This is opening up space for innovative start-ups to design products required in today’s time.
  • The products can be accessed using wallets like metamask, etc. This provides a single interface and lot of start-ups are working to make the experience user-friendly as well as secure.

Quite a few start-ups have built innovative dApps and Protocols in DeFi ecosystem. Some of the DeFi start-ups in different areas of finance are as follows:

  • Credit and Lending – The DeFi lending platforms enable peer to peer loans to borrowers (individuals as well as businesses) without involving intermediaries. Examples are BlockFi, Compound, SALT, ETHLend, and NUO Network.
  • Savings and Deposits – The DeFi players in the Savings and Deposits space provide user-friendly interfaces for users to deposit their crypto assets and earn interest on it. Most of the players are an alternative interface to different lending protocols. Examples are Dharma, PoolTogether, Linen App.
  • Insurance – The DeFi players in Insurance space are primarily with peer to peer decentralized insurance for different types of insurance products like smart contract hacks, crypto assets, etc. Examples are Etherisc, Nexus Mutual, VouchForMe.
  • Trading and Exchanges – The DeFi players in Trading and Exchanges are mainly with decentralized exchanges (DEX) which as compared to centralized exchanges operate without any central authority. Examples are AirSwap, Bancor, IDEX, Uniswap, Oasis.
  • Payments – The DeFi players in Payments space are the protocols and apps that are helping increase the throughput of existing protocols like Ethereum to enable faster payment transactions and smart contracts execution. Examples are – Lightning Network, OmiseGO, Matic Network, xDai Stable Chain.
  • Stablecoins – Stablecoins are asset-backed cryptocurrencies, typically backed by fiat currency like USD or commodities like Gold etc. The DeFi players in this space are helping reduce the volatility of cryptocurrencies so that the latter can be used for payments and commerce. Examples are DAI, USDC, Paxos Standard.
  • Tokenization of Assets – The DeFi players in this space offer tokenization of digital and physical assets so that can be transacted in the trustless way leading to better liquidity, wider reach, the efficiency of transactions and better transparency and traceability. Examples are Polymath Network, Securitize, Tokensoft, OpenLaw Finance, Harbor.
  • Staking – The Proof of Stake is becoming the most popular consensus protocol in permissionless Blockchain networks. The DeFi players in this space are mainly Staling Pools or Staking as a Service provider that helps users to stake for these protocols and earn rewards. Examples are Chorus One, HyperBlocks, Stake Capital, SparkPool, Stakin.
  • DeFi Infrastructure – The players in this space are building the building blocks of DeFi ecosystem whether it be Protocols or frameworks that power the various DeFi apps and protocols. Examples are Ox Protocol, Bancor Protocol, Chainlink, Kyber Network, Hydro Protocol, RSK, Ren, Uniswap, Zeeve Blockchain Automation Platform.
  • Decentralized Identity – Decentralized identity helps users control and protect their own identity. Examples are uPort, Civic, CoLendi, Sovrin.
  • Prediction Markets – The players in this space provide platform to trade the outcome of events. The prices based on wisdom of the crowd is indicative of the probability of the events. Examples are Augur, Gnosis.
  • Analytics – The players in this space are building analytics platforms that helps crunch the data on DeFi protocols to enable decision making, predictions and monitoring. Examples are Alethio, Chainbeat, DeFi Pulse.
  • Asset Management
    – The players in this space are helping users to access various DeFi protocols and services in a user-friendly way by means of wallets, apps and intuitive dashboards. Examples are Coinbase Wallet, Eidoo, imToken, InstaDApp, MetaMask, MyEtherWallet.

The DeFi ecosystem is growing with newer start-ups building different protocols, apps, frameworks, and interfaces to overcome the DeFi challenges. The current size and usage are still very small as compared to the traditional phase but the growth and promise are encouraging to see the world moving from centralized and risk-prone financial economy to decentralized and open economy.

Sofocle is one of the leading Blockchain companies building the futuristic web using Blockchain Technology. Sofocle has helped various start-ups and enterprises build innovative products and solutions using Blockchain and Smart Contracts. If you have a DeFi idea or concept and want to build the next big thing, connect with one of our DeFi services experts.

The Anatomy of Blockchain Deployment

An immutable time-stamped series record of data that gets managed on a distributed network is Blockchain. This technology was first implemented in 2008 by Satoshi Nakamoto, and now after 11 years of progress, it has achieved as one of the most secured technologies having hands-on almost every sector of the economy. The reason behind this reliability is its architecture, which is quite complex to understand.

So let’s move forward to learn architecture, different components, and the process involved in high-security technology Blockchain.

Various people mislead blockchain as bitcoin currency only, but there is a lot more under the umbrella of blockchain. It uses a peer-to-peer network of computers to validate the transactions in the block. This technology works in an open network that has no central authority. That is why the information in it is open for participants and everyone to see, which is called transparency.

Building your blockchain solution is not so complicated, all it takes is complete knowledge of its architecture and core components. The technology has core characteristics of accountability, reliability, and decentralization.

Planning of Blockchain

Blockchain is the spine of Digital Cryptocurrency Bitcoin. To understand the architecture, it is necessary to have a brief knowledge about the technology. Blockchain is a decentralized distributed ledger of transactions among the network of computers. The transactions done by the user are verified directly without a central authority.

If you want to implement a customizable blockchain solution, programming languages such as C++, Python, C, Java, and Ruby are needed. Besides, web development skills like HTML, CSS, Node JS will give handy experience. Blockchain has three pillars of success.

  • Decentralization: It is a process of distributing the power of central authority for every small transaction. Every single user wants to get an opportunity to become one of the network’s many decision processors.
  • Transparency: Who doesn’t want crystal clear water? Just like the same blockchain provides unparalleled transparency to the valid ledger. Users can check these records as per their convenience.
  • Immutability: There was a need for a technology that gives security to the database from insiders too. Blockchain provides the ability to ledgers to remain unchanged, unaltered, and indelible as blocks of data cannot be altered.

How is Blockchain distributed?

Blockchain is distributed in three types of networks and subdivided further. Just like the image is showing different nodes, the same concept is.

Distributed networks are further divided into two types of networks that work on the same terms with few differences.

Public Distributed Ledgers: Just like any other public access here also anonymous users can get into multiple nodes of the network for decision making.

Private Distributed Ledgers: On the other hand here users are not anonymous who are getting into multiple nodes of the network for decision making.

What are the stages of the transaction?

Blockchain follows a hierarchy of processes for the transactions in the network. These stages are necessary for the data in terms of transparency and immutability.

Transaction Requested
The process starts from the user end where he/she will put their request. The request made is for the transaction of anything like a financial transaction or any data to be recorded in the ledger, etc.

Block created
The request then sent to the block that would represent the transaction. In the blockchain, data is stored in the form of blocks and linked to each other in the form of a chain, which induces the word blockchain.

Block sent to the network
This block carrying the request is sent to every node of the network. One of the pillars of blockchain stated here, i.e., distributed. This block gets distributed on different nodes of the network to verify and ensure the security of the request.

Transaction validated
Once all the nodes receive the block, they then validate it. Block gets validated by every node distributed among different computers, and after verifying every object, moved forward.

Block added
After all the validations from every node, the block gets the reward and then added to the existing blockchain.

Now comes the final stage, where the block has crossed all the hurdles and completed the transaction of the user.

Layers of Blockchain

The Internet has seven layers for data transmission and security, and so is blockchain. Blockchain is one of the most secure technologies in the digital world, having three different layers for its services to us.

Cryptocurrency has given the experience of security to the next level in the country, out of which Bitcoin has come up to shine.

As every cake has a creamy layer, the same blockchain stack has its foremost creamy layer as Overlay Network. It includes various protocols for auditing services:

  • Proof of Process
  • Proof of Existence
  • Proof of Audit

Decentralized protocols are with built-in data as we can develop the open-source technology. Due to overlay networks and the Blockchain, validation, and transactions didn’t get controlled by a single entity.

Open-source APIs are publicly available for all developers for accessing their data. It allows the developers and outside workforce to access the backend data to improvise their applications.

The application layer is more consumer part of the stack. Generally, applications built in this layer are similar to each other.

Components of Blockchain

Every ecosystem has organs that give functioning to it. Blockchain ecosystems have the following components.

  • Node: This represents the user or the system that is involved in the blockchain.
  • Transaction: The smallest building block present in the blockchain system.
  • Block: It is used to keep a set of transactions as a data structure that gets distributed to all nodes on the network.
  • Chain: Blocks that are linked together in a specific order, form chain.
  • Consensus: As everything needs to have rules and arrangements to carry out their operations so as the blockchain.

Let’s discuss in brief about some of them and a few others also:

Node Application

In a specific blockchain ecosystem, for participation, every internet-connected computer related to that particular blockchain ecosystem has to install and run a node application.

Distributed Ledger

The database can be synchronized, replicated, and shared among the members of the decentralized network and is available for the participants of that particular blockchain ecosystem.

Virtual Machine

An extraction of machine set off with instructions and implemented as part of node application that is run by every participant in the blockchain ecosystem.

Consensus Algorithm

It is essential for deciding the functioning of the blockchain and its extension in the future. This algorithm provides security and stability to the data in the blockchain.

Blockchain architecture serves various benefits to organizations and enterprises:

  • Data Security: Once data entered, it is hard to alter it in the database.
  • Cost Reduction: With the growing cybercrime, lots of money is spent on data security. Blockchain structure is sustaining the security at a low cost too.
  • Flexibility of Data: Blockchain is a distributed data structure, so it can be retrieved any moment from the distributed network.
  • Every time a transaction is requested, a new block gets built within the blockchain. Each record is digitally signed and rewarded to ensure its transparency. It then gets verified by the majority of nodes of the system and then added to the network.

Implementing the blockchain solution

Blockchain is a decentralized distributed network and for creating a solution, there are few steps involved within it.

Step 1: Identifying the Use Case

The foremost and crucial step for any software is identifying the use case. The same is for blockchain implementation, the key to development is to figure out the problems, target audience, and solution for the same. Various problems will come in mind when researching the problems, and that will add clarity to the goals.

Step 2: Choosing Blockchain carefully

There are a lot of varieties in the market for technology. Sometimes it becomes very difficult to choose the type of technology for your dream business solution. Some of the popular blockchain platforms that are available in the market are:

  • Zeeve
  • Hyperledger Fabric
  • Quorum
  • Stellar
  • Corda

It is very important to do proper research work on these platforms too and, make sure that it will suit your budget and possess the quality that your solution needs. You can also take advice from someone who has prior experience in blockchain, and that can be any person in any company.

Step 3: Initializing the Blockchain

We have already discussed the process of blockchain earlier above, and that process is necessary to get followed by the data. To initialize the blockchain solution, it is advisable to create the first block manually. The block should possess the features of the chain and then share it at all nodes of the network system.

Step 4: Choosing the Right Consensus Protocol

These protocols refer to the mathematical problems that require large calculations. They create an undeniable system of agreement between systems and networks to prevent the system from exploitation, hacking, spam attempts. There are a variety of protocols like:

  • Proof of Stake
  • Proof of Work
  • Proof of Weight
  • Delegated Proof-of-Stake
  • Byzantine Fault Tolerance

Step 5: Building an Ecosystem

Creating a community within the industry or an organization is very helpful in understanding the technology and its potential to improve the trust among the businesses. An ecosystem does base on belief, and in the blockchain ecosystem, it is very necessary as it involves a large number of stakeholders in it.

Step 6: Designing Deliberately

The design had the power of attracting the crowd. Blockchain solution needs to get designed properly as there is always a possibility of updating it in the future. The process of the solution needs to be revised to lay preliminaries for blockchain.

Step 7: Navigating Uncertainty

Blockchain is still new in some sectors. You should be ready every time for making changes in the framework and the challenges for regulatory approaches. A certain change is anything can reshape the whole solution.

Blockchain technology enables organizations & companies in the following ways:

  • Blockchain protects from cybercrimes, electronic crimes, hacking, etc.
  • It helps in introducing modern digital interaction.
  • Reduction of cost due to the removal of intermediaries, inefficiencies, and duplications.
  • Quick transactions with trust.
  • Detailed control over transactions and business processes.

Initializing a blockchain solution is not an easy task. It can be a little frustrating in starting, but later on, you will realize this is more successful than expected. This is a new technology, but in the future, it can create various possibilities in the success of your organization.

Blockchain helps in running daily operations more easily within a defined network. From the legal outlook to technical terms, blockchain ledgers had made a connection between involved parties only. This technology ensures control over the privacy and security of data in the system over time.

Trading with Blockchain in Energy Market

Technology to empower renewable energy to enter the trade market with trust.

Being a part of nature’s culture, we all know that renewable resources are limited. These resources are diminishing day by day as it takes millions of years to renew them. Humans have taken out various solutions to use these sources of energy wisely. Out of them, solar systems are the most widely used invention. In a world full of needs, humans are helping each other with these resources. And they had entered the trade market for this. The trade market developed on trust and transparency, which is ensured by Blockchain.

conclusive reprise

A Noida based startup- Sofocle Technologies has come up with a technology named Ojus to develop a link between peers for easy and clear trading of renewable electric energy. Sofocle aims enterprise solutions for real business problems through brainstorming blockchain concepts to ensure security and efficiency. This blockchain-based solution will help in transforming the trading and distribution of Electricity by using peer to peer distributed ledger and smart contracts.
Ojus is aimed at features and advantages of Blockchain as it is one of the finest technologies in the world to date.

  • Transparency
  • Enhanced Security
  • Cannot be corrupted
  • Distributed ledgers
  • Faster monetary settlement

Ojus is a peer to peer energy sharing blockchain-based solution. It was introduced to streamline the process of trading of electrical energy sources from producers to consumers. It has been developed using HyperLedger Fabric Protocol and uses Smart Contracts for digitizing the processes.

The energy produced is generally sold at a lower price than the optimal price to the consumers because of which profit is earned by both parties. This creates a transparent relationship between producer and consumer without the involvement of any intermediary.

Through Ojus, electricity subscribers can securely sign in to their accounts, set bids, and quote their price for locally generated energy. A separate portal for distribution utilities is available for user and meter identity management. The platform also generates reports displaying total settlements, total units produced and consumed via tokens.

What was Scenario before Ojus?

It’s not like energy was not shared before Ojus, there were few problems between producer and consumer.

  • No transparency
  • Slow steps to the digitization
  • Trust issues
  • Unsure monetary transactions
  • Involvement of intermediaries

Everyone needs a system that can induce every problem in the digital world.

How is Ojus a good practice?

Every technology is invented to ease the life of humans, but few technologies are there for nature as well. Ojus is a technology that is made for both nature and its creation of humans.

⦁ Regenerate the used
Nowadays, every second person is installing solar panels on their rooftops to regenerate solar energy. This has deteriorated the demand for electricity. Solar panels absorb the energy from sunlight and then generate electric energy from it. Electricity is non-renewable energy and, once this source was scarce. Through this platform, we can spread awareness of solar panels as well as the scarcity of this important source of life.

⦁ Sharing is caring
Ojus encourages the sharing of energy sources because sharing is one of the important life’s ethics. If the energy gets generated in high quantities, then you could share it with your neighbors who don’t have this source, and it will help them and nature as well. Rather than sending it to the grid, it’s better to share it with your neighbors.

⦁ Avail the basic
Not everyone near to you is rich enough to avail of these basic services. Few people are there who are not able to take them on the government’s price. If you have enough solar energy, you can easily trade to unprivileged at a low price.

⦁ Money is everything
Yes, money is everything and what if you are getting it without any hard work. When these energy units get traded, then ultimately, what you receive in return is money. Solar panels are a one-time investment, and then you can save your money and earn them as well.

Ojus has achieved success by a partnership with TERI (The Energy and Resources Institute). “The successful deployment of this prototype would help in scaling up the adoption of rooftop solar in the domestic consumer category,” according to Alekhya Datta, fellow and area convenor, TERI, who conceptualized and led the development of this prototype after TERI’s pitch for the same won accolades at the Global Blockchain Congress at Kolkata in December 2018.

Blockchain has its benefits in the energy sector:

  • Cost Reduction
  • Sustainable to environment
  • Transparency for Stakeholders
  • Profit for everyone
  • The smart contract builds blind trust

Ojus, a blockchain-based power distribution system, is built and already deployed. The platform covers a configurable number of units produced and the complete tracking down the entities. Each unit generated is traceable, which helps the end-user to gain from the system.

Future of Ojus

Ojus is not only a smart technology, but it’s nature-friendly also. All needed is to spread awareness among people about solar energy trading. Behind all this, blockchain is building trust as a spine of the system.

Ojus have their advantages and to earn them book a demo today.

Challenges in the Enterprise Adoption of Blockchain

Sofocle is known for its Blockchain Evangelism, deep-rooted research, and pioneering when it comes to this technology. It is only natural for the company to raise awareness about the real challenges shadowing the enterprise adoption of Blockchains like slow transaction speeds, lack of standards and interoperability between different platforms and solutions, legal and regulatory concerns around data privacy and intellectual property, production/enterprise-grade deployment automation is one of the major challenges as well and the technical complexity involved, while busting the myths behind this potential but unproven emerging technology.

At the NASSCOM Product Connect Virtual Panel Discussion held on 25th June 2019, our three distinguished panelists who had an erudite discussion on the challenges of Enterprise Adoption of Blockchain, pointed out the major reasons why Blockchain has a long way to go in terms of its enterprise implementation.

Mr. Irfan Khan, Digital Economist Hypermine, articulately delineated some of the concerns which include,

Bitcoin as a standard is the first generation of Blockchain DLT. Initially, public Blockchains were created without enterprise requirements in mind. Thus, the aspect of privacy was not given much importance. Existing competitors like Visa and Mastercard have faster processes that prioritize privacy. The learning curve of cryptography and decentralization is slower.

Evolved DLTs like DAGS and HashGraps make it possible to achieve speeds above 100,000 GPS and speeds of 150-200 Mbps per node. The performance will soon reach enterprise-grade as expected by consumers and CIO with emerging technologies that should be performing. The fact of the matter remains that government support and more adoption by more enterprises are still lacking.

Availability of Talent is another issue where not enough developers, consultants, research scientists are available and not enough research papers are out to support findings on how this rapidly growing technology can be deployed in enterprise environments.

Blockchain is in the most preliminary stages of the technology life cycle where technology experts believe that it is still unstable for enterprise adoption. The evolutionary stage is the worst time to invest and thus all the enterprises are waiting to see which the best time to get good ROI is and that the technology does not become obsolete within one or two years.

With platforms like Hyperledger and Ethereum coming up with so many types of consensus, no definitive standardization mechanisms are in place currently.

Mr. Ravi Chamria, the CEO of Sofocle delineated the challenges of adopting Blockchain at an enterprise level with a focus on three key aspects, namely,

Security and Usability

One of the hallmark features of applications or networks on Blockchain is digital identity. A person or user can be identified by full authenticity on a Blockchain through digital identity. A specific user who has performed a transaction can be identified and verified on the system which helps in obtaining the timestamp and the details of the user, and in managing disputes and auditability of transactions.

The identity is based on a public-private key pair and the major problem is that of storing and managing the private keys at the user level to sign any transactions. In a proper decentralized system, this private key needs to be stored locally so that it is not available to anyone else. It is difficult for a non-technical user to manage the keys. Tools are still being built to support easy management by such users.

Transaction interfaces or technical interfaces are required in Blockchain for a normal user to comprehend. These interfaces depend on the complex architectures which are difficult for a normal user to understand.
The third challenge in usability is building connectors with legacy applications. In the enterprise domain, Blockchain is a layer that interacts with multiple applications like supply chain, ERP, automated claims management system, etc.

The identifiers on the enterprise-level application systems need to be compatible with the identity that is designed on the Blockchain system. The transaction verifiability and finality have to be defined or structured in an application for seamless interactions with the Blockchain system. Plug-and-play connectors need to be designed in Blockchain so that existing applications can be used without impediments. Data, user identity, access control, and specific set of transactions need to be coordinated between legacy enterprise applications and the Blockchain ecosystem using pipelines.

Network Deployment and Management

The next set of challenges lie in the DevOps area which requires clear coordination between the technology and business teams. Owing to the complexity of a Blockchain application, with decentralized nodes in Blockchain, some of the nodes are hosted outside an organization by external parties. Managing the deployment of such networks with a different set of permissions and privacy controls, to be managed in a single interface is a major challenge that IT teams face today. Manual deployments take a long time, thus, automating it becomes necessary requiring expertise. There are chances of error while defining access control and privacy. Having multiple protocols like Hyperledger Fabric and Hyperledger Sawtooth in the market today increases the complexity of managing Blockchain networks since different applications are built using different protocols.

Onboarding of new partners, multiple cloud players or nodes on an existing Blockchain network is another blocking factor in the enterprise adoption of Blockchain because of the requirement of technical expertise. Automation during this process is another pressing need that has to be addressed.

The final usability challenge lies in Benchmarking and Monitoring. Since only production-level deployments have been observed more, benchmarking data is not available. Monitoring Blockchain nodes outside an organization, cost-control, and managing exigencies that happen on an external network are three aspects that give enterprises limited autonomy.

Lack of Optimum Blockchain Expertise

In terms of education and Blockchain expertise, incremental innovation is backed by mending of broken processes or strengthening of existing processes. Due to the inherent lack of trust or data integrity among organizations, defining new business models is taking a serious blow. The know-how of sound token economics which is core to Blockchain needs to be shared among technical experts and Blockchain experts of different organizations. An incentive structure for each party has to be designed clearly to join the network. Transformational innovation involves transforming the entire process itself.

Dr. Vishwas Patil Research Scientist, Center of Excellence Blockchain, IIT Bombay, summarized the problems of enterprise adoption of Blockchain with an imperative question, “Where to start?”

He highlighted that it is easy to orchestrate machines to agree on protocols but is quite the opposite in case of people when it comes to Blockchain. According to him, the main hurdle lies in understanding the core concepts of Blockchain and propagation of knowledge. There is difficulty in circling down to one use case of Blockchain that a consortium of enterprise users can fathom and start engaging in.

Enterprises need to comply with the regulations laid out by their local jurisdictions in terms of Data Protection, Regulation, and Governance which may prevent them from taking complete advantage of Blockchain adoptions. Blockchain by definition is a shared database on which enterprises try to communicate with peers on the events that have occurred internally and what inferences these peer entities or collaborators should derive from them. Tricky questions like which data to share? Does the enterprise have control over the data once shared? Which parties have the ability to take a look into the issues and concerns since collaborators are also competitors? Top the list when it comes to enterprise collaboration on a Blockchain. Contextual access control that an enterprise can put over this data is another aspect that needs enterprises to pay heed on. Blockchain is a process and the control aspects are something one cannot design in the protocol and has to be developed on top of the protocol. The non-existence of readymade tools that can be installed easily like MySQL. A lot of planning has to be done to ensure that processes run smoothly.

Blockchain is an append-only and read-only database that currently does not have the flexibility to support deleting attributes or implementing protection mechanisms over them.

Specific purpose protocols like Bitcoin which are currency-specific in Blockchain and other platforms like Ethereum that provides general purpose solutions have different procedures that are followed and do not guarantee consistent performance for Blockchain as a whole unit.

Blockchain implementation does not have generic structure options like database schemas or XML templates that can be modified based on needs.

Cryptographic management of keys between organizations is another area where data confidentiality and integrity need to be carefully managed between enterprise Blockchain networks. Usually, credentials management or encryption are carried out by protocols like HTTPS or security layers like SSL online by browsers, servers, or applications without human intervention. But, in the case of Blockchain, these aspects have to be managed by people which will be a tedious undertaking.

Trade-offs between Blockchain properties like speed when laid focus on, leads to a compromise in other factors like governance. The five interdependent trade-offs in Blockchain are speed, openness, transaction costs, decentralized trust, and censorship resistance, where, every other aspect gets affected if one of them is compromised.

Next challenge lies in the robustness, reliability, and Smart Contracts vulnerabilities. The errors in Solidity language and Ethereum, and proof of stake consideration flaws prove that the promises made by frameworks in the past have not been met during time-critical implementations. The major issue lies in the confidentiality or privacy of data, contracts, and applications that are put on shared platforms which may be vulnerable to data leaks in enterprises through participants who do not have a stake on the workflow. Blockchain poses a problem when it comes to role-specific privatization of data.

Backward secrecy of data strategies through access control mechanisms are difficult to devise when new participants join the shared ledger platform, where they cannot read transactions that have taken place before them joining the network.

Standards pertaining to routers, firewalls, software, and any other hardware come with definitive standards. Complying with them by Blockchain is something that is difficult to promise for enterprises at the moment.

Finally, platform interoperability through consensus among machines and humans on standards, protocols, workflows, etc. is a challenge that still haunts the enterprise adoption of Blockchain.

The challenges faced by Blockchain Solution providers can be summarized in the following points.

  • Arbitrary Pricing
  • Protocol, Cloud, and Vendor Lock-in
  • No True Decentralization
  • Incompatible Blockchain Ecosystems
  • Interoperability issues
  • Complications in building applications
  • The assumption by clients that Smart Contract Technology is a solved problem
  • Customers mixing up foundation-level protocols with a complete business solution

Conclusive Reprise

On a higher level, the challenges in the enterprise adoption of Blockchain can be divided into organizational, economic, and technological challenges which have been delineated above.

conclusive reprise

With these current impediments standing in the way of enterprise adoption of Blockchain, the three panelists exclaimed that only time will tell how predictable, secure, and useful Blockchain will be for enterprises in different business domains, but were positive about enterprise adoption happening sooner than later.


5 Ways in which Blockchain will Disrupt the Gaming Industry?

The extremely competitive gaming industry is under a constant state of stress. This could be attributed to the constantly evolving technology landscape, intense competition, changing consumer habits and lack of regulation, which paves way for an unstructured industry where competitive edge becomes difficult to sustain. While the industry has been strongly impacted by technologies (AR, VR and AI) offering immersive experiences, the need for a revolutionary technology that can address the loopholes while transform it into an economic endeavor rather than being just an entertainment activity is strongly felt.

Today, with around 70 % of American population playing video games, the gaming industry has witnessed growth in leaps and bounds. According to statistics shared by Newzoo consultancy, the current global gaming market which stands at $108 billion is forecasted to reach $138 billion by 2020.

However, irrespective of the size and growth, businesses have to deal with obstacles, and the gaming industry isn’t any exception. Blockchain – a peer-to-peer technology has the potential to transform the gaming industry in multitude of ways. Here’s how:

Blockchain in Gaming

    • Providing Players with a More Personalized Gaming Experience: Gaming companies often store their assets on centralized servers fearing risk of asset duplication. Since, they do not have control over their purchased virtual assets, they are restricted from buying, selling or trading these assets beyond the gaming ecosystem. Blockchain brings the ownership and control of these assets in the hands of gamers or players by creating a transparent and decentralized ecosystem wherein players will be able to exchange their virtual assets with other players that too instantly. Apart from this, gamers will be able to exchange assets with players of other game, which will offer a more personalized gaming experience to the players.
    • Enhanced Security of Gaming Assets: Introducing Blockchain technology to the gaming industry will not just prevent illegal trading of virtual assets but will also check issues related to hacking and stealing. This becomes possible because the encrypted blockchain ledgers are impenetrable. The immutable nature of Blockchain makes duplication of assets impossible thereby proving ownership of assets and ensuring safety of gaming assets.
    • Prevents Fraudulence: Though, the gaming industry has been thriving, it has been prone to fraudulence with one out of every 7 virtual items surrendering to fraud. This has led to loss of millions of dollars in terms of revenue. Incorporating Blockchain within the gaming industry will ensure eradication of such menaces thus saving the gaming industry with billions of dollars.

Also Read: How Blockchain Addresses Issues Surrounding Data Ownership and Privacy?

  • Faster Processing of Payments: Introducing Blockchain within the gaming ecosystem will ensure faster and secure processing of payments for gamers who can now purchase items and make payments without any hassles or risk. Apart from this, Blockchain will ease the job for developers who otherwise have to struggle selling their apps beyond the app store and have to pay high commission fees to intermediaries. Blockchain allows the processing of even the smallest of amount so that developers get instantly paid and can re-invest their money in marketing their game launch.
  • Democratizing Voting Mechanism: Voting features are extremely popular within the gaming community as it helps in ranking of games, players and other items. Blockchain can eliminate the menace pertaining to corruption and manipulation of votes, which results in feedback (from the voting system) that is unreliable. The immutability element and smart contract functionality of Blockchain makes manipulation of votes extremely difficult.

Final Words:

It wouldn’t be a tall claim to make that Blockchain is poised to be the future of a flourishing and secure gaming industry. While the aforementioned benefits are just the tip of the iceberg when it comes to several benefits that this innovative technology is expected to offer, the technology will certainly bring forth new set of gaming innovation, which in turn will pave way for a new gaming landscape.

How Blockchain Addresses Issues Surrounding Data Ownership and Privacy?

Social media giant Facebook recently had to bear the brunt of regulators for mishandling user data. According to report shared by New York Times, Facebook had shared sensitive user data with more than 60 device makers, including Apple and Samsung thereby staking confidential data of millions of users. While the internet giant has blatantly refuted all the allegations levelled against it and has constantly tried to justify its stand, the fact remains that its user data has been spread or hacked way beyond boundaries that are no longer within the control of the company. This and constant drumbeat of similar other high-profile instances have pushed the tipping point when people have started believing that the internet they have been relying on is actually broken.

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Ensuring Efficient Implementation of CSR Activities with a Blockchain Based Solution

In the words of Winston Churchill “Responsibility is the Price of Greatness”

Firms and businesses have a similar responsibility, as well as commitment towards the social and economic development of their stakeholders, community and the society at large. In fact, the practice of CSR or Corporate Social Responsibility as a business model has evolved from being a slogan that was considered trendy by some firms to the current era where it has become more of a business requirement rather than just an option.

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A Complete Guide To Directed Acyclic Graph (DAG)

Although Bitcoin got introduced in the market in the year 2011, it was 2015 when it reached the popularity and identification. It was the same year when the underlying technology- Blockchain caught the attention of the experts and the revolution of exploiting its potential started. Before this, Blockchain got recognised as just another data structure supporting an emerging trend, but in reality, it encapsulated great technology and promises of a tech-driven future.

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Implications of Blockchain in Telecom Industry

Blockchain is a revolutionary technology that can be leveraged in many sectors to inculcate the trust and transparency, and increase efficiency in the processes. It is a decentralized ledger that helps form a trustless network among the different participants, thereby bringing failure-resistant capability. It is currently the most widely discussed technology among different industries, all trying to harness its potential.

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Hashgraph & Blockchain: Similarities & Differences

The world is finally moving to the next level of revolution in IT & Internet. The Blockchain is tout to be ‘the internet 3.0.’ It is based on the distributed ledger technology, though the real potential of this technology was realized only when the Blockchain came into existence. And when, still many people are in the process of understanding use cases of the Blockchain Technology beyond Bitcoin, a new technology is making news, hyped as the ‘future of distributed ledger,’ the Hashgraph.

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