The next block in the chain: Enterprise adoption of blockchains
Blockchain technology has the potential to revolutionize the rules of the game by disintermediating, improving transparency in financial and business processes, improving customer experience, breaking geographic barriers and establishing a democratic, autonomous, trustless economy governed by logic and community-consensus.
The Blockchain was popularized by its first application: Bitcoin cryptocurrency, a cryptocurrency that introduced a new way to conduct transactions via Proof-of-Work (PoW) based consensus, which enabled thousands of completely untrusted participants to transact peer-to-peer without the need for a central authority guaranteeing the values exchanged. This public Blockchain network, similar to other public Blockchains, however, has a few drawbacks such as high latencies, low transaction rates, fluctuating transaction costs and significant energy expenditure, which makes it less fit for enterprise adoption. Private and Consortium Blockchains were invented as a response.
As public Blockchains evolved from a niche technology powering cryptocurrency to a more pervasive, flexible, programmable and automatable one, the underlying consensus mechanisms too developed to address the drawbacks and enable business adoption of public Blockchains.
This article provides an overview of the technology mosaic that is the Blockchain, investigates the current industry trends, gives an insight into the current problems plaguing public Blockchains, the various Blockchain typologies, the evolving world of consensus mechanisms while analyzing the merits and demerits of these components.