DZone
Thanks for visiting DZone today,
Edit Profile
  • Manage Email Subscriptions
  • How to Post to DZone
  • Article Submission Guidelines
Sign Out View Profile
  • Post an Article
  • Manage My Drafts
Over 2 million developers have joined DZone.
Log In / Join
Refcards Trend Reports Events Over 2 million developers have joined DZone. Join Today! Thanks for visiting DZone today,
Edit Profile Manage Email Subscriptions Moderation Admin Console How to Post to DZone Article Submission Guidelines
View Profile
Sign Out
Refcards
Trend Reports
Events
Zones
Culture and Methodologies Agile Career Development Methodologies Team Management
Data Engineering AI/ML Big Data Data Databases IoT
Software Design and Architecture Cloud Architecture Containers Integration Microservices Performance Security
Coding Frameworks Java JavaScript Languages Tools
Testing, Deployment, and Maintenance Deployment DevOps and CI/CD Maintenance Monitoring and Observability Testing, Tools, and Frameworks
Culture and Methodologies
Agile Career Development Methodologies Team Management
Data Engineering
AI/ML Big Data Data Databases IoT
Software Design and Architecture
Cloud Architecture Containers Integration Microservices Performance Security
Coding
Frameworks Java JavaScript Languages Tools
Testing, Deployment, and Maintenance
Deployment DevOps and CI/CD Maintenance Monitoring and Observability Testing, Tools, and Frameworks
  1. DZone
  2. Software Design and Architecture
  3. Security
  4. 3 Reasons Enterprises Are Moving to Decentralized Blockchain Applications

3 Reasons Enterprises Are Moving to Decentralized Blockchain Applications

Want to learn more about the top three reasons that enterprises are looking at decentralized blockchain apps? Click here to learn more.

Jesse Casman user avatar by
Jesse Casman
CORE ·
Oct. 30, 18 · Analysis
Like (2)
Save
Tweet
Share
6.55K Views

Join the DZone community and get the full member experience.

Join For Free

At BlockWorld Conference in San Jose last month, I was amazed at the level of enthusiastic interest by large global enterprises to use blockchain for transactional applications. Although the general public may associate blockchain with popular cryptocurrencies like Bitcoin, enterprises are moving to blockchain for its ability to handle trustless transactions and secure record keeping.

At the conference, I spoke to one of the BlockWorld speakers, Emmanuel Thiriez, founder of Platform 6, about the movement of enterprises to decentralized blockchain applications. Emmanuel has unique insight into this trend. In addition to blockchain technology expertise, Platform 6's parent company, Amalto, already has a long list of enterprise clients, including Chevron, GE, Iron Mountain, Suez, Superior Propane, and Thales.

Gartner's "Top Predictions in Blockchain Business" report pointed out that projects by enterprises that apply peer-to-peer decentralized models without a middleman are rare. Indeed, most enterprise blockchain projects still rely on a central application that interacts with the underlying blockchain technology.

My question to Emmanuel, “Why should enterprises be moving to a peer-to-peer decentralized model for blockchain business applications?”

His answer provided insight into the evolving industry of enterprise blockchain software development.

1. Afraid of the Risk of a Single Point Failure

If a blockchain-based application works with central management, why change it? With today’s security and network infrastructure, it’s likely that downtime to a central management server is minimized. However, what about in the future? As blockchain becomes more widely used, centralized systems may see usage spikes or be impacted by attacks.

To address this concern, Emmanuel suggested that developers look into making blockchain-based applications that are really decentralized and use a peer-to-peer model for transactions and management. Each trading partner or member of the ecosystem should operate its own instance of the decentralized application and not rely on a central entity to interact with the underlying blockchain framework.

2. Centralized Control Slowing Adoption

Enterprise blockchain-based applications are usually about connecting different organizations or trading partners. If a part of the solution is centralized, each organization needs to have trust in the entity or people that control the central piece. By using fully decentralized applications, enterprises overcome this concern, therefore, speeding up adoption. A decentralized architecture allows each party to run their own instance, not having to trust any other party.

3. Concerns About Tampering

Although blockchain transactions are inherently transparent, secure, and irrevocable, organizations have expressed concerns with the risk of tampering to a centralized system. By decentralizing the blockchain application, a developer can dramatically reduce this risk. In a true peer-to-peer decentralized model, there is no middleman. Businesses can eliminate any type of man-in-the-middle attack.

This gives enterprises more confidence that they’re not putting the keys to the money vault in a single place. In order to tamper with the application, the attacker would need to compromise all the systems.

The Future of Enterprise Blockchain Applications

For blockchain-based applications, decentralization seems natural and like an easy sell to the enterprise. It takes the inherent advantages of blockchain and brings them to the transactional application. So, why aren’t all enterprise blockchain applications decentralized?

A big reason why your blockchain applications may still be centralized is that a decentralized application is more difficult to build. But companies like Emmanuel’s are improving the blockchain industry by providing platforms that make it easier to develop, package, and run enterprise-class, decentralized blockchain applications.

Blockchain will have an enormous impact on enterprise transactions in the future. Despite some adoption by enterprises, blockchain applications are still early on the technology adoption cycle. It is clear that decentralized application architecture will prevail because of the benefits of reducing risk and anxiety among enterprise adopters. From a technology point of view, it’s better. It’s also a safer choice.

application Blockchain

Published at DZone with permission of Jesse Casman. See the original article here.

Opinions expressed by DZone contributors are their own.

Popular on DZone

  • Implementing Infinite Scroll in jOOQ
  • Architectural Miscalculation and Hibernate Problem "Type UUID but Expression Is of Type Bytea"
  • 9 Ways You Can Improve Security Posture
  • How to Deploy Machine Learning Models on AWS Lambda Using Docker

Comments

Partner Resources

X

ABOUT US

  • About DZone
  • Send feedback
  • Careers
  • Sitemap

ADVERTISE

  • Advertise with DZone

CONTRIBUTE ON DZONE

  • Article Submission Guidelines
  • Become a Contributor
  • Visit the Writers' Zone

LEGAL

  • Terms of Service
  • Privacy Policy

CONTACT US

  • 600 Park Offices Drive
  • Suite 300
  • Durham, NC 27709
  • support@dzone.com
  • +1 (919) 678-0300

Let's be friends: