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Blockchain In Business

How real world see blockchain ?
We know that businesses never operate in isolation. They always work together with other businesses, with governments, with banks, with all types of organizations within markets. And effectively, wealth is generated by the flow of goods and services across these business networks.

The undermarkets could actually also be of two different types eg. open market such as an auction, or a private market such as some things like a supply chain financing or bonds exchange. So effectively these business networks are fundamental to the application of Blockchain.

So assets are transferred across the business network and all transaction captured on ledger. So ledgers are the key to effectively recording the flow of assets in and out of an organization. The ledger´s updated every time a transaction occurs.

Now we haven't talked about Blockchain very much up to now. Let's actually bring Blockchain into the picture. Blockchain at the very highest level is a trusted, distributed ledger which has a shared set of business processes across all the members of the business network. 

Let's see some examples what problems people are facing and how blockchain helps to overcome such issues.Below is example given for Asset Transfer
all parties doing multiple transaction to buy & transfer asset which increase
inefficiency ,risk ,increase time ,vulnerability and dependency on each other.




In Blockchain network above mentioned issues can be minimized by doing transaction in distributed shared network.
Requirements of Blockchain for Business Network

Shared Ledger
Records all transactions across business network.
• Shared between participants
• Participants have own copy through replication
• Permissioned, so participants see only appropriate transactions
• Shared system of record
Smart Contract
Business rules implied by the contract … embedded in the Blockchain and executed with the transaction.
•Verifiable, signed
•Encoded in programming language
•Example:
–Defines contractual conditions under which corporate Bond transfer occurs
Privacy
The ledger is shared, but participants require privacy
Participants need:
–Appropriate confidentiality between subsets of participants
–Identity not linked to a transaction
•Transactions need to be authenticated
•Cryptography central to these processes
Trust
The ledger is a trusted source of information
Participants endorse transactions
–Business network decides who will endorse transactions
–Endorsed transactions are added to the ledger with appropriate confidentiality
•Assets have a verifiable audit trail
–Transactions cannot be modified, inserted or deleted
•Achieved through consensus, provenance, immutability and finality

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