The public blockchain has, in many cases by design, the following challenges to enterprise adoption, particularly those industries that are highly regulated:
- No privacy
- Anonymous processors
- Little to no governance
- Limited throughput with slow transaction confirmation (performance challenge)
In short, there are essentially two aspects to privacy itself: read permission and block generation (or write) permission. If the use case requires privacy, you will want to restrict read permission. If the use case requires trust spread across a limited and predetermined set of participants, you will want to restrict write permission. Both aspects individually or collectively may push you to a private (or consortium) blockchain platform.
The following is a more complete collection of use cases:
- A permissioned interfinancial institution settlement layer for digital assets (currencies and securities)
- An intracompany ledger (balance sheet) containing private data without any single
department being in authoritative control
- A permissioned platform for the issuance and maintenance of rewards, loyalty points, and gift cards
- A tracking tool for private equity, debt, and other liquid agreements
- Database management, auditing, etc., internal to a single company
- Any use case that requires incredibly high numbers of transactions per second
- Any government related deployment
I will be writing more on the topic so stay tuned to the blog...