On his keynote stage play, Jordan Fried, SVP Business Development for Hedera Hashgraph has spoken some true issues that need to be focussed on and how Hedera addresses them making enterprise blockchain a comforting reality.
Cryptocurrency is still in its infancy and not understanding could be overwhelming for an enterprise leaders. With over 59% of executives viewing this technology as more of a threat than boon for their business, it is vital that a dialogue is built up to address their fears.
Starting off, Jordan says that in order to scale blockchain for enterprise, we first need to address the issues with the blockchain. Only then can we go full scale forward.
One of the primary issues to be considered is the performance vs sacrifice issue. For instance, you cannot order 100k TPS but be vulnerable to DDOS attacks or cross scripting or anything as such. This is the reason why the majority of enterprise businesses are scared of adopting blockchain. He says that we need more than simple SLA and infrastructure improvements to assure businesses for security.
Another important thing public networks are notorious for forking up. For instance, if we decide to place the entire Las Vegas billion dollar real estate on a blockchain, they may eventually be vulnerable to forking. This will be the entry point for a double spend issue.
Forking is one of the major concerns for building large centralized system that constantly fear split networks.
Another major issue that we need to take into account is the issue of governance. “Who’s making the decisions? Who is deciding the smart contract costs? Who is trusting the codebases that are being accepted into the chain?” he asks. These are the questions that we need to find answers before even thinking of scaling up enterprise level networks.
Continuity and certainty are big questions. The market is basically divided into Public and Private networks. The public network works on the proof of consensus, work and stake system,. These can assure good resistance against any DDOS or cross scripting attacks but they are very difficult to scale. You can expect more eof just about 12 transactions a second but not more.
30 years ago, there has been good literature that brought up some of the biggest problems for consensus networks. The Byzantine Generals problem stands as a roadblock. Clearing it out is the Asynchronous Byzantine Fault Tolerance ABFT which is the gold standard.
High ABFT tolerance levels are achieved through consensus based on voting. But what if we eliminate the very point of voting? The removal of the need to vote? Hash graph is the first network to play with these rules and succeed.
Today Hedera tries to address and solve these issues. Solutions that are going to help us build scalable networks.
Why tokens and Crypto and the Hedera Governance council?
Talking of the importance of tokens, Jordan says that a token has dual role in the entire equation. First is that it acts as protection. It helps us govern the chain. The other is the most important aspect. It helps being an incentive that works as a payment for all the resources that are being used. It helps remove the tragedy of the commons.
The Hedera governance council is not just another chain. Here, the technical and legal controls are held by the network’s governance in order to maintain and upgrade the network for the better.
This led them to create new services and manage existing with ease and scale better than most enterprise serving public blockchains. They do have the obvious payment and smart contracts. They also have file sharing and storing service, There is the ratification and attestation of identity services that even let you revoke it. Apart from that, they have the one of a kind ability to power to private consensus networks too. So far, there are 10 services that have already jumped onto the platform.
Thank you for reading this article.
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