When we talk about blockchain we usually talk about permissionless blockchain. Simply because they involve money through token/coin sales. Especially the price volatility of tokens/coins.
However, let's forget there are permission blockchains and private blockchains. They still have many specific use cases. In the trade finance sector, analysts estimate the current market size to be around $17 trillion. Private corporations or organizations in business will have a greater need to use the permissioned blockchain/private blockchain.
In business, there is a lot of data that cannot be made public. So private companies and corporations will not share the chain with the public through the permissionless blockchain.
Currently, large private companies or large private organizations such as Mastercard, IBM, Microsoft, Toyota, Samsung, and Alphabet... are using permissioned blockchain. Some popular permissioned blockchain platforms such as Hyperledger Fabric, Quorum, Corda...
In traditional business, members of a business organization can confirm each other, but they still do not fully trust each other. Among members, there is always suspicion of fraud and a lack of transparency in information. Therefore, their system has many strict processes to control those risks, thereby creating many costs incurred in the process of conducting transactions and business.
Blockchain helps them to reduce the verification costs in the current traditional system. We can call it the cost of trust. At the same time, blockchain also reduces counterparty risks for businesses and transactions.
With technical features such as cryptographic hash function, timestamp, asymmetric encryption, and digital signature... blockchain technology can completely solve the problems of verification and cost. trust in business.
Blockchain is still quite new with the majority of users as well as the technology is not really mature. Technology takes time to improve and to mature through new use cases.
An example is a shift from using proof of work to using proof of stake. The first generation blockchain platforms do favor the use of proof of work, but it poses some obstacles to everyone's participation in the network. The next-generation platforms are multi-improved and transitioned to proof-of-stake. The use of proof-of-stake offers a lot of potentials for companies to join the network, many of which could move to blockchain.
However, using proof of work is still safer than using proof of stake.
Both have strengths and weaknesses. The bottom line I want to say here is that technology is always changing to adapt and meet the needs of users and the market.
The blockchain network can use any consensus algorithm as long as it suits the needs of the users. The most important thing is that the network must attract users (users can be individuals, organizations, or businesses...). To have users that #blockchain network must add value. To increase the value, it is necessary to determine the meaning of existence, what is the purpose of the existence of the network? It solves society's problems. In short, a blockchain network that wants to be sustainable needs to solve a certain problem for society and focus on users.
Blockchain technology today is like the era of dot-com in the early days. The #technology is still sketchy, the legal framework is not clear, and the trust of users is not great. But this technology has the potential to change the business model of many current industries. The maturation of dot-com has given us names like Amazon, Google, and Facebook. Before that, in its infancy dot-com was also considered a scam, as crazy as most blockchain reviews are today.
Developers have more support from service providers who help build, test, and run a specific blockchain application like Tatum. Early developers who want to build a blockchain-based application need to do most of the steps themselves.
The past NFT trends seem to be full of scams, and applying the basic features of NFTs to real-life assets opens up new forms of ownership. In the future, the oracle network for smart contracts is more readily available that can perform physical asset swaps. When assets are digitized and represented as data, blockchain is indispensable to make everything possible.
Blockchain technology is not something too divine. It is a special kind of distributed database. Data is what appears in all human activities today, so when there is data, people can assign blockchain to discuss.
Do not misunderstand that blockchain can be applied to all fields and industries working with data. As mentioned above, the application of blockchain in the form of permissioned blockchain or permissionless blockchain should meet the needs of customers, that is, understand the needs of the market. Developers have more support from service providers who help build, test, and run a specific blockchain application like #Tatum. Early developers who want to build a blockchain-based application need to do most of the steps themselves.
It's great that we are at the point of formation and development of new technology. Like how the Japanese liken blockchain to a revolution that only happens once every 500 years. I think it's a metaphor for expressing the imagination commonly found in humans. However, blockchain is worth the time to learn, discuss, and follow its development.