Blockchain-based business networks and their use of technology

Blockchain-based business networks and their use of technology

Blockchain
June 8, 2022 by Diana Ambolis
214
Technology choices and considerations are critical to building, installing, and running a blockchain-based business network. The functional and non-functional requirements of all stakeholders and the core business influence the entire technical architecture of a blockchain system. A timeline and history of blockchain technology Data, network, application services, and apps or interface layer are the four
Blockchain-based business networks and their use of technology

Technology choices and considerations are critical to building, installing, and running a blockchain-based business network. The functional and non-functional requirements of all stakeholders and the core business influence the entire technical architecture of a blockchain system.

A timeline and history of blockchain technology

Data, network, application services, and apps or interface layer are the four layers that make up the solution. These four levels should be realized with five views or models – infrastructure, security, integration, deployment, and operations to develop a successful blockchain network.

In earlier postings, we emphasized the importance of the BOLT framework, which stands for business, operations, legal, and technology. This time, we’ll look at the final technological factor in greater depth in order to assist your blockchain-based business network in architecting and building for development.

1. Create a comprehensive end-to-end solution that includes both network and application components.

A blockchain solution should compressively cover the required set of data elements, core network components, application services, and apps for all personas across businesses to participate effectively in the blockchain-based business network. On the application side, it is necessary to explicitly define the scope of business requirements and classify what gets on the blockchain and what stays off the blockchain.

Describe the services and solutions required for all four layers of the solution stack — data, network, APIs, and apps — to clearly identify the technology stack. Define your adoption process by tailoring it to the engagement for the whole create, integrate, test, deploy, and operate lifecycle. Also, using DevOps tooling stacks and seamless code promotion across environments for all components, specify all required lower environments, pre-prod, and prod.

2. Create a network that allows for easy onboarding and expansion.

The network design is primarily concerned with the basic blockchain components, the underlying DLT platform, and how to best utilize its capabilities. Based on the nature and projected functionality of the target network, choose the suitable blockchain platform for your organization – Hyperledger Fabric, R3 Corda, Quorum, or others. Define a smart contract framework that allows for easy cross-geography modification and expansion to new players in similar enterprises. Define your static and dynamic asset relationship models by identifying companies and personas, and business events that cause smart contracts to change the asset entity’s value or status.

A swimlane diagram can help you visualize your asset lifecycle management across your firm. Define the channel architecture and endorsement policy by determining the network stakeholders who will validate and authorize the transaction and who will have access to blockchain-based business network data. In a Fabric-based network, the channel and personal data collection and endorsement policies are critical features for implementing data privacy and consensus.

Also, read – How is Blockchain converting the Fintech industry?

3. For a comprehensive blockchain-based business network, security, and integration must be implemented.

Then, using a suitable security service (for example, AppID), address security concerns such as identification and access management so that participants have granular access by mapping user IDs, roles, and certificates. Also, according to your established needs, it can be handled with decentralized, transparent, and responsible identity and credential management amongst issuers, holders, and verifiers.

Data privacy is an important issue that must be handled, which can be accomplished by categorizing data into four categories: personal, corporate, legal, and operational. Based on the requirements specified for the correct level of data sharing on the network, data privacy can also be achieved utilizing channels, private data collecting, encryption, zero-knowledge proofs, and off-chain databases. Make sure to negotiate the development and management of keys and certificates with the collaborating entities.

The next step is to find a safe mechanism to manage the keys and certificates, such as utilizing HSM or managed services for keys such as “key protect” and other approaches. For both inbound and outbound data, a clear integration strategy is essential. For importing and exporting data with your DLT, use REST APIs and messaging systems like Kafka, SFTP, ETL, and others. Discuss the need to integrate with current enterprise IDPs on the part of participating organizations to establish SSO.

4. Create a scalable growth plan to address deployment and non-functional requirements.

It’s now time to think about your physical deployment model as well as NFRs. As previously said, this is where you deploy your blockchain network. Based on all your blockchain-based business network participants, vision and nature, choose the right infrastructure — single cloud, multi-cloud, on-premises, or hybrid. Choose containers for the network, application, and API components to be deployed and external system interaction.

Finally, based on your data model, projected performance indicators, and data consumption across many personas and participants, determine whether the data be stored both on-chain and off-chain. Assess the volume of data in real-time and offline processing, the estimated number of (total and concurrent) users, transaction metrics, and performance metrics for the next few years. Compute the transactions per second (TPS) and use that information to calculate capacity. Establish a successful integration by identifying and instantiating all essential sets of managed and third-party services for your entire solution. Make a note of them all on the bill of materials.

To develop a scalable and sustainable blockchain-based business network, the technology viewpoint of the whole end-to-end technical solution with infrastructure, security, integration, deployment, operational concerns, and non-functional factors are critical.