Big financial institutions and corporations have begun to take the blockchain seriously. Some are embracing it and others reluctantly admit it may be the next big thing. There’s no doubt that blockchain can provide faster and cheaper solutions for money transfers and a variety of real-world applications. But there are still a few roadblocks keeping many companies from switching over. Fortunately, many major, pro-blockchain corporations are working to make the technology more attractive to big businesses. In order to do so, they need to establish a trusted system involving the blockchain.
The obvious advantage of the blockchain for wiring money or sending data is that it’s extremely fast. Bitcoin (BTC) has slowed down as its network has become saturated. However, altcoins like Ripple (XRP) can facilitate transfers in a few seconds. Similarly, self-automation means no middleman, which leads to much lower fees, especially for cross-border payments.
But for obvious reasons, “decentralization” is not an attractive term to many banks and corporations
Since Bitcoin (BTC) launched in 2019, however, developers have redefined what the blockchain is. Additionally, they tweaked some of its functions and applications. For one thing, a fully transparent and trusted, public ledger is only one kind of blockchain. Many crypto-enthusiasts want to see the blockchain replacing the internet and crypto replace fiat. But banks and corporations using private blockchains still constitutes as a victory for the technology.
Additionally, smart contracts may allow for a way to stay decentralized but still conceal data. For instance, a program called Town Crier was recently developed to connect smart contracts to the internet. Basically, there’d be no limit to the data they can access. And they can self-execute once data from multiple sources check out. Similarly, sensitive information can remain private to users and even encrypted and hidden from protocol itself.
Microsoft has been developing a similar “trusted” protocol called the Confidential Consortium, or “Coco” Blockchain Framework
Instead of connecting with only random nodes, it connects with pre-determined, trusted parties to validate. Microsoft is a major proponent of blockchain technology, and they’re from the “trickle down” school. In other words, they want to make big business comfortable with the blockchain, and then it will spread across to average consumers.
Similar to smart contracts, their “distributed network” will allow a degree of control in establishing parameters up front. The process could still be highly efficient since transactions can self-execute from there. While only a certain group can govern network changes and rules, this will be a fully transparent and trusted system.
According to Microsoft, Coco is 100 times faster than Ethereum. Quorum, Sawtooth, and Corda plan to adopt it.
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