Many experts predict that blockchain will fundamentally change the world. Its potential for transforming trade, identification and trust has already inspired 15% of the banks to adopt blockchain in order to deliver services quickly, reliably and securely to their customers. What we have less insight into is the number of startups that are working with blockchain development to make decentralized networks ready for businesses. Among the projects that blockchain developers have dived into, Hyperledger by the Linux Foundation stands out as one with ample potential. It has accumulated almost 200 members, which are currently working to make this open source technology to the wider market. Anyone interested in blockchain development can learn, share, borrow and contribute to creating viable tools for distributed ledgers. Currently, the Hyperledger projects include five frameworks: Burrow, Sawtooth, Fabric, Iroha and Indy; and three blockchain developer tools – Cello, Composer and Explorer.
Why is Hyperledger a Compelling Blockchain Framework
Blockchain is a global phenomenon, thriving in regions with abundant technical expertise. The promising trends created by the Hyperledger community are based on the use of permissioned networks where trusted business partners collaborate by removing intermediaries, cutting down costs, speeding up processes, and reconciling business records in shared unchangeable ledgers.
Instead of the open invitation like in the public blockchains, the permission for access to the permissioned blockchain in the Hyperledger frameworks is given by special invitation. This is the main advantage of distributed replicated ledgers, explaining why blockchain development will change the nature of transactions across the globe.
In the language of Dr. Phil Windley, who stands behind one of the Hyperledger’s members, the Sovrin Foundation, decentralized blockchain apps can solve the problem of digital identities for people on the web. As common Internet identifiers are places (or web addresses), we can verify the place and the machine, but not the people behind it. This is why we use protocols, which give way to decentralization. Blockchain used for digital identities is a three-component protocol, creating new levels of trust and competitiveness on the Internet, and making space for new players by removing the silos of information issue.
How is Blockchain Development Transforming Supply Chain Management
Supply chain management and logistics have inevitably been two of the most exciting areas of blockchain development. Multiple Hyperledger participants work create solutions for assuring traceability of products and their impact on people’s health and safety, as well as on the environment.
When you can keep immutable historical records in a shared ledger, the possibilities for fraud are kept down to zero. For example, the collaboration between Maersk and IBM enabled development of a large platform for joint membership in the supply chain, guaranteeing authenticity of action and origin of products. When records are forever the same, it’s easy to track back different goods, such as tuna, palm oil or even diamonds back to their origin.
Accenture works on expanding the area to health and safety, risk management, freight audit and traveler identification. Enterprise clients who have so far found impossible to cooperate due to unstable trust systems will benefit from blockchain development. The technology has the potential to change all that by offering a cryptographic system for verifying a single source of truth found in one ledger.
Other Industries Apt for Blockchain Innovation
Which are the additional industries ready for experimentation or already well into the hands of blockchain developers?
1. Energy supply.
Smart electricity grids can be used as distributed power systems where batteries are installed on multiple decentralized locations. Electric cars and other smart devices can use these resources in the Internet of Things, where decentralized network eliminate the need for a central location.
2. Predictive analytics.
Broadcasting in sports, stocks and elections can be made simple by blockchain predictive analytics.
3. Insurance.
With smart insurance contracts, the insurance industry can be overhauled and raised to a new level of trust where all participants in the system share replicated and immutable record of transactions. One ledger equals less confusion and misinterpretation of data, as well increased trust.
4. Transport sharing.
Without the need for intermediaries, many people can get into direct arrangements, avoiding fees and making car sharing accessible and affordable.
5. Copyright and licensing.
With the help of blockchain development, photographers, musicians and other artists who share a piece of digital art on the web can gain guaranteed copyright access, limit the possibilities for infringement, as well as simplify the licensing process. Once the good is uploaded and connected to an unchangeable digital identity, counterfeiting is impossible.
6. Retail.
Removing the middlemen in the retail industry means also a removal of associated service fees. It’s vital to understand that many current mediators exist solely to provide an additional level of assurance to users. With trusted distributed ledgers, the need for extra credit provided by third-party dissolves.
7. Real estate
The volume of the transactions on the real estate market, the large number of participants and the system discrepancies make the market slow, inflexible and susceptible to fraud. With decentralized databases for real estate contractors, buyers and sellers will get unified insight into market values and prices, which will help them make informed decisions.
8. Gaming.
The blockchain technology can help the gaming industry revolutionize its competitive capacity. Due to the dominance of several large players, this competitiveness has been lost. Hyperledger enables new incentive levels for players who will be able to participate in a more transparent process with fewer intermediaries.
9. Healthcare.
The Hyperledger Healthcare Working Group works to improve the interoperability of hospital records and use blockchain development for process automation over a wide area of hospital services. Extra benefits can include quality and security of drugs and vaccines.
Blockchain for the finance industry is only a minimal part of the possible application of the technology developed by Hyperledger. The blockchain development wave has already overtaken more than a dozen industries, including energy supply, healthcare, pharmaceuticals and food manufacturing; and a few industry channels and processes, such as supply chain management, IoT and cloud computing. Time will tell what else is possible.
