Blockchain technology has become increasingly popular among businesses, especially in financial services. The instantaneous, transparent and decentralized nature of blockchain makes it an attractive technology for many applications, and many businesses are considering partnerships with blockchain infrastructure platforms. However, not all blockchain infrastructure companies are created equal.
One key element to consider with a blockchain infrastructure partner is the platform’s ability to support your company based on size, scale, future goals and more. For example, if you are an enterprise looking to integrate blockchain into your platform, selecting a partner that can provide enterprise-grade blockchain infrastructure is key to the success of your solution.
But the question is…what is enterprise-grade blockchain infrastructure?
Enterprise-grade blockchain infrastructures are private blockchain architectures that are designed specifically for business use cases. They are not open to the public and are only accessible to authorized users. These blockchain infrastructures are designed with reliability, scalability and security in mind.
Key distinctions of enterprise-grade blockchain infrastructure
Reliability
Reliability ensures the technology will deliver the required business functionality in a consistent, predictable and cost-effective manner without compromising core aspects such as availability, performance, and maintenance. Ultimately, this means having technology and teams you can count on to be available and highly responsive.
Unlike traditional financial markets, crypto trades 24/7/365. This means that your end users will have an expectation to access crypto services at all times. As such, a reliable platform should ensure there is no single point of failure and they will have the appropriate monitoring in place to detect issues with performance.
Considerations when assessing reliability
A blockchain infrastructure partner with high reliability has no single point of failure.
- This means it has replicated servers, meaning any single pod in Kubernetes or application container is not critical to production services
- Full redundancy is in place for servers, with presence in multiple availability zones and regions
- And more
A blockchain infrastructure partner with high reliability should also be able to see all parts of the platform – commonly referred to as observability. Observability can be achieved by:
- Logging, monitoring and alerting service providers and clients of status updates 24/7
- Having teams and tools in place with the capability of seeing issues early before end users are affected
- And more
Lastly, having an SLA above 99.9% with a low latency are also important indicators of reliability.
Kubernetes is a portable, extensible, open source platform for managing containerized workloads and services, that facilitates both declarative configuration and automation. It has a large, rapidly growing ecosystem.1
1 Kubernetes Documentation,https://kubernetes.io/docs/concepts/overview/
Scalability
Scalability refers to technology that is built to seamlessly support enterprises and their customers as they scale and add end users – and is a critical benefit that enterprise-grade blockchain infrastructure offers.
To achieve scalability, enterprise blockchains can use a variety of techniques, including sharding. Sharding involves dividing the blockchain into smaller partitions known as shards, each of which can process transactions independently. Sharding enables the blockchain to handle a higher volume of transactions than would otherwise be possible.
Enterprise-focused technology supports the needs of large volumes of users and also the need to scale tertiary services seamlessly as the demand for the platform grows.
Considerations when assessing scalability
- Ensure platform scales deposit and withdrawal wallets through HD wallets, automated rebalancing and parallel withdrawal processing
- Additional application containers and kubernetes nodes can be added automatically to meet increased demand
- Learn if the partner uses Amazon Web Services (AWS) or a similar resource for near unlimited on-demand infrastructure scalability
Security
Enterprise blockchain infrastructure providers are designed with security as a top priority, and they employ a variety of techniques to ensure that the data stored on the blockchain is secure. A key security feature of enterprise blockchains is the use of permissioned networks.
A permissioned blockchain is a distributed ledger that is not publicly accessible. It can only be accessed by users with permissions. The users can only perform specific actions granted to them by the ledger administrators and are required to identify themselves through certificates or other digital means.2
2 Jake Frankenfield, Permissioned Blockchain: Definition, Examples, Vs. Permissionless, https://www.investopedia.com/terms/p/permissioned-blockchains.asp
A secure crypto wallet needs to protect against two scenarios: access to the wallet by bad actors and loss of access for good actors. Digital signatures are utilized to verify the authenticity of transactions and to prevent data tampering. These digital signatures serve as unique identifiers for transactions, providing an additional layer of security to the blockchain. Multi-signature wallets, or multisig wallets, prevent these two unfavorable outcomes by having several people control individual signing keys.
Enterprise blockchains also utilize smart contracts, which are computer programs that self-execute contract terms when predefined conditions are met. Smart contracts can be used to automate the enforcement of contractual agreements, such as payments or transfers of ownership. By using smart contracts, enterprises can reduce the risk of errors and fraud, making the blockchain more secure.
Considerations for assessing security
Secure infrastructure with:
- Strict multi-party access controls
- Multiple layers of change approvals
- All systems monitored 24x7x365 by a dedicated Security Operations Center
- And more
Enterprise-grade is built for the future
Enterprise-grade blockchain infrastructure offers a range of benefits for businesses, including improved security, scalability, privacy, transparency, cost savings, efficiency and trust. While there are several enterprise-grade platforms available, businesses should carefully consider their specific needs and requirements before choosing a platform. Factors such as regulation, privacy, security, scalability and compatibility with existing systems should all be taken into account when selecting a blockchain platform.
Overall, the adoption of enterprise-grade enterprise blockchain infrastructure has the potential to transform the way that businesses operate and interact with their customers. By providing a secure, transparent and efficient platform for transactions (without having to handle the complexity and technology internally), enterprise blockchain infrastructure can help businesses to stay ahead of the competition and meet the evolving needs of their customers.