First of all, I'm not selling anything here. I'm a web developer learning something new. I don't work at all with blockchains. I'm not trying to be "cool", whatever that means in this world. I like the blockchain technology and the ideas with it.
Second, private blockchains are not a solution for every single business network. Still a young technology, even more so on the permissioned blockchain side, we'll keep figuring out where it will be useful or not.
Permissioned blockchains could be a good way to increase trust between entities that have no reason to trust each other. In our "classic" business network, every single organisation will keep their own ledger of records. Which means that every time an operation happens, every organisation involved in this operation would need to update their ledger. If we have 5 companies involved in a transaction, we would have 5 different updates on 5 different ledgers.
By having a distributed ledger ( which is what a blockchain is ), we only need to update one ledger that everyone in the network share. The "permissioned" part means that entities can only view the part of the ledger they are involved with ( which is the difference with the Bitcoin blockchain for example ).
Potentially, the blockchain could reduce errors, and because it is almost impossible to cheat it, it increases the trust between the different organisations because they know the data is safe.
That's a very short answer to something that could take several articles to answer, on a technology we are still exploring and trying to find the best possible use cases. But, I hope it was clear enough.
Have a nice day.
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First of all, I'm not selling anything here. I'm a web developer learning something new. I don't work at all with blockchains. I'm not trying to be "cool", whatever that means in this world. I like the blockchain technology and the ideas with it.
Second, private blockchains are not a solution for every single business network. Still a young technology, even more so on the permissioned blockchain side, we'll keep figuring out where it will be useful or not.
Permissioned blockchains could be a good way to increase trust between entities that have no reason to trust each other. In our "classic" business network, every single organisation will keep their own ledger of records. Which means that every time an operation happens, every organisation involved in this operation would need to update their ledger. If we have 5 companies involved in a transaction, we would have 5 different updates on 5 different ledgers.
By having a distributed ledger ( which is what a blockchain is ), we only need to update one ledger that everyone in the network share. The "permissioned" part means that entities can only view the part of the ledger they are involved with ( which is the difference with the Bitcoin blockchain for example ).
Potentially, the blockchain could reduce errors, and because it is almost impossible to cheat it, it increases the trust between the different organisations because they know the data is safe.
That's a very short answer to something that could take several articles to answer, on a technology we are still exploring and trying to find the best possible use cases. But, I hope it was clear enough.
Have a nice day.