There’s been excitement around how blockchain can revolutionize the way businesses create and capture value, similar to when the internet burst into mainstream. Blockchain is a type of distributed ledger that uses cryptography and algorithms to record data in an immutable way. It replicates the ledger in a number of identical databases, each hosted and maintained by an interested party called a node on the blockchain.

Unlike the internet, which requires an intermediary to validate transactions and transfer ownership of digital assets, in case of blockchain, since data is replicated and synchronized on every node, the validation and transfer of ownership is an autonomous function which is performed without the need for a central authority. The validation function is performed by smart contracts, which are codified business rules embodying the terms and conditions.

By eliminating the intermediary, blockchain creates a decentralized ecosystem where trust becomes paramount. Without an intermediary, transaction fees reduce, speed of operation improves, and transparency is enforced among all participating nodes as data is replicated on every node in the blockchain. Hence, blockchain as many say is the trust layer that has eluded the internet.

From a purely operational standpoint for enterprises, since data is replicated on all nodes there is no single point of failure. Moreover, reduced transaction fees and/or no cost of sharing information means reduced cost for doing business. Also, since nodes on a blockchain share data records or transaction histories, it eliminates inefficiencies induced by operating in silos and leads to faster processing times for both B2B and B2C businesses.

These are some compelling benefits and enterprises are exploring ways to implement blockchain. In order to help companies fast track their journey, we have designed a few constructs that lay the building blocks for your blockchain strategy. These constructs have been defined keeping in mind that there will be a heterogeneous, multi-ledger world where interoperability between different distributed ledger networks will be key. Each blockchain protocol serves its own purpose and lends itself to the following constructs, which I’ll cover in more detail in my subsequent blogs:

1) Digital Asset Management (DAM)

Blockchain at its core is a decentralized way to exchange digital assets within a business network. DAM can be used to digitize every tangible asset on the blockchain and assign a universal id using the digital twin concept. What this does is it helps you track location, ownership and provenance or measure utilization and performance of a digital asset.

2) Decentralized IDs

As seen above, a key construct in this decentralized world is a Digital Asset. Every Digital Asset will have a unique ID called a Decentralized ID. These IDs can be generated from different sources. We recommend a few approaches. In some industries, industry players have come together to use a single ID mechanism e.g. Automotive Vehicle Identification Numbers, or VIN. In the publishing industry, all books have a standardized International Standard Book Number, or ISBN. These are excellent choices whenever available. When not available, one should choose an ID generator of repute in the Decentralized world. There are a few like Civic or 1TrueID and others evolving in the space. NetObjex also provides a Universal Blockchain Code (UBC) for use. The goal of a Decentralized ID is similar to that of an IP address — which is to provide a referencing mechanism to locate a digital resource.

3) Middleware for blockchain

Client-Server architecture has been the predominant topology for the last three decades. This is changing with the push for decentralization. However, organizations and their applications will evolve slowly towards this new model of computation over time. In addition, one can easily make the case that only a certain small set of systems lend themselves to decentralization, and many others are well served in their current centralized architectures. With this fragmentation looming, we foresee the need to bridge the chasm between what remains on the centralized side, and what moves to the decentralized side. To this end, the NetObjex platform plays the role of a mediation layer that manages digital assets and publishes information to the distributed ledgers on an as needed basis. Our middleware reduces risk while preserving digital investments of organizations as they take their measured steps towards decentralization.

4) Blockchain Interoperability

As stated above, we foresee a world with multiple heterogeneous distributed ledgers. With that in mind, imagine an insurance underwriter who wishes to obtain a 360 degree view of a prospective client in order to calculate the premium on a whole life policy. The client’s academic credentials, health records, employment credentials and other data would all most likely be scattered in ledgers within various ecosystems. To search, and aggregate such data, one would need technologies to pull such information together. The NetObjex platform eases this pain with its Blockchain interoperability layer that enables it to find, search, aggregate data across several heterogeneous distributed technologies including Ethereum, Hyperledger, NEM and IOTA.

One must keep in mind these points while building a blockchain application from ground up. Alternatively, you can also reach out to us at NetObjex to learn about how we incorporate the above constructs in our platform.

If interested in learning more about NetObjex, contact us through our website at www.netobjex.com and subscribe to our Telegram channel: https://t.me/netobjex