Despite being technologically superior, blockchain is facing issues in industry wide adoption, mainly because of a lack of tested and trusted enterprise solutions. Deloitte reported that 95% of different enterprises from almost every vertical invested in the revolutionary blockchain technology in 2018. Despite one of the longest bear crypto market currently going on, the technology’s advancement and progress never stopped. That is due to the fact that blockchain technology is very versatile and cryptocurrency is just one part of it. The high demand of blockchain is evident from the ever increasing demand for blockchain enterprise solutions where security and immutability are top priority.
BlockPublisher got in touch with Sky Guo, the co-founder of Cypherium which is a platform that aims to be the leader of enterprise blockchain solutions. Sky Guo discussed blockchain low TPS (transactions per second), scalability issues and their test net’s ability. Guo also talked about storage challenge Cypherium is facing currently due to high speed. He says:
“Our test net can run 2,000 to 3,000 transactions. It also supports smart contracts. The test results are stable but the challenge is how to reduce the latency so that the blocks could propagate faster. This means the disk space also gets used very quickly which means we have to find a new way for better storage.”
Decentralization is why many companies are looking into adopting blockchain. Typically in businesses, a centralized server stores all the data of the company and everyone accesses the database through different levels of permission. The problem is whenever the server stops working or it is hacked, it causes a complete failure, affecting the whole company. Blockchain comes in handy here since it is a decentralized peer-to-peer network and there is no central authority. Even if any peer goes offline, there are other peers that can be accessed.
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Guo is very optimistic that Cypherium test net can handle thousands of transactions per second due to the fact that they are using a hybrid consensus mechanism. Since blockchain is a peer-to-peer network, it uses agreement of different peers inside the network to validate a transaction. Running 2,000 to 3,000 TPS is a big claim in the blockchain technology since it is still evolving and no one has an actual working product for now that can handle transactions in thousands. Guo says:
“We have a hybrid of proof-of-work and Practical Byzantine Fault Tolerance (pBFT), a consensus mechanism that maintains decentralization, security and scalability. We also we have secure and robust smart contract to address the speed needs and the security of the high transaction volume. Our goal is to enable the real world adoption across the different industries like finance, healthcare supply chain and more.”
Proof-of-work algorithm is a method to achieve consensus on which block to add next to the blockchain. Bitcoin is based on it since by solving the puzzle, a new block is added in the network. In pBFT consensus mechanism, the network reaches a sufficient consensus correctly despite some malicious peers, sending incorrect information to other peers. pBFT is an ideal consensus algorithm for enterprise solutions where numbers can be partially trusted and the mechanism is widely used in power plants, airplane engine systems and every system that involves numerous data inputs (peers) to reach a consensus.
Some of blockchain’s biggest and arguably heaviest adversaries, like J.P. Morgan and Goldman Sachs, have knelt down to its potential by incorporating blockchain-based solutions. J.P. Morgan launched its own blockchain-based stable coin, backed by U.S. dollar, to speed its operational settlements between institutions. IBM has also just deployed its considerable cybersecurity SWAT team, X-Force Red, to the growing enterprise blockchain arena.
Guo also talked about blockchain adoption and how the technology can be incorporated in other verticals. He is of the view that centralized platforms are at very high security risk because not long ago, Facebook security was breached and millions of users’ data was compromised. He says:
“I am most optimistic about blockchain for digital identities because blockchain is decentralized and everything is not on a single server. Centralized platforms are always at the risk of being hacked. For example, Facebook got hacked and there was a massive leak of user data. When you switch to blockchain enabled idle dissolution, it keeps your sensitive data only to yourself. Only with your permission using your private key, other party can unlock that information. This mitigates the risk of getting a massive data breach like Facebook had.”
Guo is of the view that blockchain has its biggest use case when there is a need to secure and track an identity like in finance, healthcare and security agencies. Since everything is maintained on a secure peer-to-peer network and every transaction is recorded, it is easy to track transactions within the network. He says:
“Thehe best industry to adopt blockchain are financial, healthcare and identity. For example, the US Department of Homeland Security has recently launched a program to get a blockchain-based neighborhood identity solutions.”
Blockchain adoption is currently facing bottleneck. This is mainly due to the fact that the regulatory bodies are still trying to understand different aspects of the technology, cryptocurrency being one of them. Talking about regulating the technology, Guo says:
“The regulation will definitely favor the enterprise adoption of blockchain. In many countries like China, US and Singapore, they have established their best dedicated workforce to research and explore the potential of blockchain. There are grants and funds for local governments to adopt blockchain. For example, in Hangzhou, China, the court system is already using blockchain to verify the documents to avoid tampering of documents and evidence.”
Cypherium is an enterprise-ready blockchain platform that solves many of the technical limitations of the current blockchain technology. Security and privacy are two strongholds of the blockchain technology that can be utilized for enterprise solutions. Blockhain benefits not only an end user but also enterprises in this regard.