Blockchain is a database that stores multiple data in blocks linked together in a chain. It is an advanced database mechanism that allows businesses to share transparent information within their networks. The data in the blockchain is consistent, as you cannot delete the chain without consensus. Because of this, you can use it to develop immutable ledgers for tracking payments, accounts, orders, and other transactions. It has been used in multiple domains, such as cryptocurrency, real estate, hospital management systems, and many more.
Talking the managed blockchain solution is setting up and managing the blockchain network in organizations without worrying about the technical details. According to the global market, managed blockchain services are expected to grow by $6764.2 million by 2032, with an increased CAGR of 11.8%. It provides many benefits to organizations to utilize the technologies without spending a tremendous amount of infrastructure and expertise. There can be many more benefits and types that can be helpful for the business; thus, you can look at the details mentioned below in the blog.
What Are the Types of Managed Blockchain Solutions?
1. Public Blockchain Solution
Public blockchains are open networks that can be accessible to all anyone who can participate in the network. In this type of network, anyone can write, read and participate within the blockchain. It is decentralized and does not have a single entity that controls the network. And is much more secure as it cannot be altered or modified once they have been validated on the blockchain.
2. Private Blockchain Solution
A private blockchain solution is not an open network; only authorized entities can participate and control the network. It is more centralized; one or more entities control the network, which leads to reliance on third parties to transact. In this, only the entity participating will have the knowledge of the transaction and thus is less secure. The participants must not trust one another.
3. Hybrid Blockchain Solution
It is a combination of the both private and public blockchain solution. It enables organizations to build a permission-based system along with a permissionless system. This helps in giving access to the data to whoever the companies want and also can restrict the area as a private blockchain. The records and transactions are not made public but can be verified when needed. A user joining the hybrid blockchain gets full access to the network. The other users cannot know the identity of the users unless they engage in a transaction. At this point, the identity is revealed to the other party.
4. Consortium Blockchain Solution
This is the fourth type of blockchain solution, also known as a federated blockchain. The blockchain allows the new participant, instead of starting from the very start, they can directly work on the established structure and share data. Organizations, with the help of this blockchain solution, can conveniently get solutions to secure cost and time of development. In this, the consensus procedures are controlled by preset nodes. Also had an initiator node that initiates, validates, and receives transactions. Member nodes can initiate or receive transactions.
Comparison Between Public Blockchain and Private Blockchain Solutions
| Public Blockchain Solution | Private Blockchain Solution |
|---|---|
| Order of Magnitude is less | The order of magnitude is more |
| Anyone can take part by verifying & adding data | Only authorized entities can participate &control the network |
| Decentralized | More Centralized |
| Can’t use a consensus algorithm | Can use consensus such as proof of elapsed time(PoET), Raft, Istanbul BFT |
| TPS( Transaction processing system) is less | TPS is more |
| Less Scalable | Highly Scalable |
| Trustless Network | Participants must not trust another |
| More Secure | Less Secure |
| Consumes more energy | Consumes less energy |
Why Managed Blockchain Solution Is Better Than A Traditional Blockchain Solution?
A traditional blockchain requires a team or the organization itself to handle the maintenance and setup of the network. On the other hand, the managed blockchain solution is a service that allows organizations to manage and set up the network without worrying about technical details. In the section mentioned below, you will come to know why managed blockchain solutions are better than traditional blockchain solutions in certain situations.
Benefits of Managed Blockchain Solutions
1. Reduced Costs
The advantage of a managed blockchain solution is cost savings, as the maintenance and building of traditional blockchain can be expensive. It requires the software and hardware to be purchased along with the time and resources required to manage the network. The managed blockchain can provide the infrastructure and support needed to set up and run a network saving all the costs.
2. User-Friendly
One of the main benefits of the managed blockchain solution is its ease of use. It provides an easy-to-use interface that helps the organization set up and manage the network without a deep understanding of the technical details. Thus it can be handy for an organization that is new to blockchain technology and want to get up and running quickly.
3. Robust Security
Security is a significant concern for any organization. If they are implying some technology, they want it to be secure. Blockchain networks and managed blockchain solutions often provide adequate security to protect the data and network. With experts’ help, managed blockchain solutions can secure the organization’s network and ensure they comply with relevant regulations.
4. Scalability and interoperability
Managed blockchains are highly scalable; the organization can scale up or down as needed without things a second time about the technical details. This can be a significant advantage for the organization being scalable as they can adjust their blockchain as needs change.
Factors to Consider when Choosing a Managed Blockchain Solution
There are several factors to consider when selecting managed blockchain solutions, including industry-specific requirements, governance and regulatory compliance, and integration with existing systems. Here is a bit more information on each of the factors-
1. Industry-Specific Requirements
It is essential to choose a solution that meets the unique requirement of the industry. There are many specific requirements, such as privacy and confidentiality, interoperability with existing systems, or support for smart contracts for your managed blockchain solution.
2. Governance and Regulatory Compliance
Depending upon the location and industry, there may be specific regulation and compliance requirements that managed blockchain must meet. For example, financial institutions may need to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations. Choosing a solution that meets these requirements and has a robust governance model is essential.
3. Integration with Existing Systems
When selecting a managed blockchain solution, it’s essential to consider how well it integrates with your current systems and infrastructure. This includes compatibility with your programming language, data storage systems, and APIs. Consider how the solution will work with your existing workflows and processes.
Security and scalability are other factors to consider when choosing a managed blockchain solution. You’ll want to select a solution with strong security measures to protect your data and assets. You’ll also want to choose a solution that can scale as your business grows and handle increasing transaction volumes.
How Does a Managed Blockchain Solution Work?
Using a managed blockchain solution, businesses can build and maintain their blockchain network without worrying about the supporting infrastructure. Ensuring the network’s security requires setting up, implementing, monitoring, securing, and scaling the network. It also offers features like encryption, access control, and identity management.
Users of a managed blockchain system can connect to the network through a service provider-provided interface. They can set up accounts, add information to the blockchain, and communicate with other users on the network.
Overall, a managed blockchain solution can be useful for companies and organizations wishing to use blockchain technology without dealing with the hassle of running a network themselves.
Use Cases for Managed Blockchain Solutions
1. Supply Chain Management
One of the most used cases of managed blockchain solutions is in the supply chain management of the organization. It can help the industry track the movement of goods from manufacturers to consumers, and this can also help in preventing the risk of fraud. It can also provide the infrastructure and support needed to set up and run a blockchain network to manage the supply chain and the technical expertise and resources required to manage it effectively.
2. Healthcare
This is another area where this technology has a transformative impact. It can help the staff maintain the proper records of the patients so that no errors are present and improve the efficiency of the healthcare system. This system can provide a balanced infrastructure and support to set up and run a blockchain healthcare network.
3. Finance and Banking
The finance and banking industry is also undergoing many changes due to implementing of managed blockchain solutions. It can facilitate cross-border payments and streamline the settlement of financial transactions. It also reduces the risk of fraud. Managed blockchain solutions also provide the support needed to run the network of finance and technical expertise.
4. Real Estate
Managed blockchain solutions can offer several benefits to the real estate industry. One of the biggest benefits is providing a transparent and secure way to record transactions. It can also lower the cost and time of the trade. This can also help in a global transaction without intermediaries needing to handle cross-border transactions.
5. Voting System
It can provide a decentralized voting system that distributes power in multiple nodes. This can reduce the risk of attacks or tampering by a single entity. It can provide greater accessibility and convenience for voters, which can help increase voter participation. The time required for the counting and result tabulation can also reduce, increasing the efficiency of the election process.
6. Intellectual Property Management
Using managed blockchain solutions in IP management can give several benefits, such as transparency and provenance, by providing immutable records of ownership, transfer, and usage of intellectual property assets. Provides protection against infringement and counterfeiting. A blockchain-based IP management system can enable collaboration and sharing of IP assets among multiple parties while maintaining control and ownership. This can facilitate innovation and reduce the cost and time needed to develop new IP assets.
7. Identity Verification
It provides a tamper-proof and secure way to store all verifying identity information. A blockchain-based identity verification system gives users greater confidence that the data is protected from fraud. The blockchain-based identity verification system can provide greater accessibility for individuals who may not have access to traditional forms of identity verification, such as those in remote or underserved areas.
8. Food Safety
This can help in maintaining all the records and details of the food that is being provided in the supply chain from the farm to the table. Also can find the source of contamination in the event. For this, they can also focus on the quality control of the food chain and ensure food product meets safe for consumption. Applying blockchain can also reduce the cost and time of tracking and verification of food safety.
9. Energy Trading
A managed blockchain solution can enable the automation of energy trading processes, such as contract execution and settlement. This can help reduce the time and cost of energy trading and increase efficiency. It can also provide greater flexibility in energy trading, allowing for trading different types of energy and integrating renewable energy sources. This can help promote renewable energy and reduce reliance on traditional fossil fuels.
10. Gaming and eSports
A managed blockchain solution can give players true ownership of their in-game assets, which can be bought, sold, and traded outside the game environment. It can enable interoperability between different gaming platforms and ecosystems, allowing for exchanging in-game assets and currencies across other games. This can promote the growth and diversity of the gaming industry.
To Know in Breif: Use Cases For Blockchain Application Development
Case Studies of Successfully Managed Blockchain Solutions
Here are some case studies of successful managed blockchain solutions provided by IBM Blockchain Platform, Amazon Managed Blockchain, and Microsoft Azure Blockchain Service:
1. IBM Blockchain Platform
IBM is a multinational technology company based in the United States. It was founded in 1911 and since then is constantly growing and has become one of the largest technology companies in the world. It is also known for its innovation in AI, cloud computing, and blockchain technology. There are many success stories present related to these technologies with IBM. Some of them related to managed blockchain solutions are mentioned below.
Maersk and IBM
A blockchain-based technology called TradeLens was developed in collaboration between Maersk and IBM. By digitizing it, the platform improves the efficiency and security of the global supply chain. TradeLens was able to cut the transit time of goods by 40% and save millions of dollars in operating costs by utilizing the IBM Blockchain Platform.
Walmart and IBM
The IBM Food Trust is a blockchain-based food safety solution that Walmart and IBM jointly developed. Walmart can swiftly identify contaminated products and remove them from shops thanks to the system, which promotes transparency and accountability in the food supply chain. Walmart was able to cut the time it needed to track the origin of a product from days to seconds by utilizing the IBM Blockchain Platform.
2. Amazon Managed Blockchain
Amazon is one of the world’s largest retailers and is an American multinational technology company. It was founded in 1994 by Jeff Bezoz, starting as an online bookstore. Over time, Amazon expanded its offerings to include a wide range of products and services, including digital content, electronics, and cloud computing services. Today, Amazon is a leading provider of e-commerce, cloud computing, digital streaming, and artificial intelligence services. In the year 2018, Amazon announced the launch of managed blockchain and, to date, has come up with many successful stories.
Nestle and Carrefour
Nestle and Carrefour partnered to create a blockchain-based platform called Track & Trace. The platform allows consumers to trace the origin of products, such as baby milk formula, from farm to store. By using Amazon Managed Blockchain, Nestle and Carrefour created a secure and transparent supply chain that builds consumer trust.
AT&T and BitPay
AT&T, a telecommunications giant, partnered with BitPay to accept cryptocurrency payments. By using Amazon Managed Blockchain, AT&T created a secure and reliable payment system that accepts cryptocurrencies such as Bitcoin.
3. Microsoft Azure Blockchain Service
Microsoft is a multinational technology company founded in 1975 by Bill Gates and Paul Allen. In recent years the company has been leading the cloud computing space with its Azure cloud platform. As a part of its cloud offering, Microsoft has also developed a blockchain platform called Azure Blockchain. The company has also collaborated with other businesses and organizations to develop blockchain solutions tailored to particular industries, which will help accelerate the adoption of blockchain technology.
Starbucks
Starbucks partnered with Microsoft to create a blockchain-based platform called Bean to Cup. The platform tracks the origin of coffee beans, ensuring that they are ethically sourced and sustainably grown. By using Microsoft Azure Blockchain Service, Starbucks was able to create a transparent and accountable supply chain that builds trust with customers.
BMW Group
BMW Group partnered with Microsoft to create a blockchain-based platform called PartChain. The platform tracks the origin of auto parts, improving the efficiency of the supply chain and reducing costs. Using Microsoft Azure Blockchain Service, BMW Group created a secure and transparent supply chain that enhances the customer experience.
Challenges and Limitations of Managed Blockchain Solution
While managed blockchain solutions offer many benefits, they also come with challenges and limitations that must be carefully considered before adoption. Here are some key challenges and limitations.
1. Technical Limitations
Managed blockchain solutions may have technological limitations that could affect the scalability and performance of the blockchain network. For example, the number of nodes that can be added to the network may be limited, which could impact the throughput of the network. Additionally, the consensus mechanism used by the managed blockchain solution may be less secure and efficient than other mechanisms.
2. Regulatory Challenges
Blockchain technology is still relatively new, and regulatory bodies are still figuring out how to regulate it. This can create challenges for businesses that want to use managed blockchain solutions, as they may need to comply with different regulatory requirements depending on the jurisdiction they operate in.
3. Adoption Barriers
Managed blockchain solutions may face adoption barriers due to the lack of awareness and understanding of the technology. This can make it difficult for businesses to convince stakeholders to invest in the technology and may lead to slower adoption rates.
4. Integration Challenges
Managed blockchain solutions may also face integration challenges with existing systems and processes. This could make it difficult for businesses to implement the technology and require significant IT infrastructure investment.
Future Outlook for Managed Blockchain Solutions
Blockchains are the most beneficial way to minimize the cost and complexities of any industry. Mentioned below are also some of the future trends and innovations that could shape the future of the industries.
1. Integration with AI and IoT
Blockchain-based solutions that can securely handle data transfer between connected devices are becoming increasingly necessary as more devices are connected to the internet. Managed blockchain solutions may offer a strong foundation for safe and automated data exchange by integrating blockchain with AI and the Internet of Things (IoT).
2. Customizable Governance Models
The ability of blockchain to support decentralized decision-making through consensus mechanisms is one of its primary advantages. However, various use cases might call for multiple governance models, and managed blockchain solutions might provide adaptable governance choices to meet numerous requirements.
3. Interoperability between Blockchain Networks
As the use of blockchain technology spreads, various networks must be able to interact and conduct transactions with one another. Interoperability features that permit cross-chain transactions and data exchange may be available in managed blockchain systems.
4. Enhanced Privacy and Security Features
In any blockchain implementation, security and privacy are crucial factors to take into account. Managed blockchain solutions may include cutting-edge security components like multi-party computation and zero-knowledge proofs to improve the confidentiality and security of blockchain apps.
5. Simplified Deployment and Management
While blockchain has enormous potential, deploying and managing blockchain networks can be complex and time-consuming. Managed blockchain solutions could offer simplified deployment and management features that enable businesses to quickly and efficiently implement blockchain solutions without requiring extensive technical expertise.
As organizations increasingly appreciate the potential of blockchain technology for enhancing security, privacy, and efficiency across a wide range of use cases, managed blockchain solutions are likely to continue expanding and improving in the years to come.
Why Choose Emizentech for Blockchain Development?
Emizentech is a leading blockchain development company offering end-to-end services to businesses worldwide. Here are some reasons why you should choose us for your blockchain development needs:
| Expertise | We have highly skilled and experienced blockchain developers who are well-versed in the latest blockchain technologies, frameworks, and platforms. They can develop custom blockchain solutions that meet your business needs and requirements. |
| Innovation | We are committed to innovation and staying up-to-date with the latest trends and advancements in the blockchain industry. We leverage cutting-edge tools and technologies to develop unique blockchain solutions that give businesses a competitive edge. |
| Quality | We are dedicated to delivering high-quality solutions that meet or exceed client expectations. Also, follow best practices in software development, testing, and quality assurance to ensure the highest quality standards. |
| Security | We understand the importance of security in blockchain solutions and employ industry-standard security practices and protocols to ensure the integrity and confidentiality of your data. |
| Support | We provide ongoing support and maintenance services to ensure your blockchain solutions are smooth and efficient. Our support is available 24/7 to provide assistance and resolve any issues or concerns you may have. |
Conclusion
Managed blockchain solutions offer businesses a convenient way to leverage the benefits of blockchain technology. They offer heightened security, increased effectiveness, and increased operational openness. Managed solutions are growing in popularity for businesses of all sizes and industries as demand for blockchain technology rises. With proper research and selection, businesses can get the most out of this innovative technology.
If you are devising to implement blockchain into your business, hire a good blockchain development company holding experience in blockchain solutions. Or, connect with our 24*7 free consultation service and start your blockchain integration project now!
Frequently Asked Questions FAQs
Managed blockchain solutions are cloud-based platforms that provide organizations with a managed environment for deploying, managing, and maintaining blockchain networks. These solutions typically offer features such as automated infrastructure provisioning, network monitoring, and security management, making it easier for businesses to implement blockchain technology without needing to invest in their own infrastructure.
Using managed blockchain solutions may expose users to risks such as:
1. data privacy violations
2. security lapses
3. vendor lock-in
4. lack of control over the underlying infrastructure
When selecting to employ a managed blockchain system, it’s critical to properly weigh the risks and advantages.
Absolutely, the majority of managed blockchain solutions are built to integrate with current business software and processes. This enables companies to take advantage of their current assets and infrastructure while still reaping the rewards of blockchain technology.
Managed blockchain solutions are made to be simple to use and don’t need much technical know-how. Most service providers provide simple-to-use interfaces and APIs that let enterprises set up and maintain their blockchain networks.
With built-in encryption, access limits, and other security measures, managed blockchain solutions are made to be very safe. Yet, there is always a chance of security breaches and vulnerabilities with technology. Therefore, picking a supplier with a solid security track record and features is critical.
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