Most enterprises and Financial Institutes are increasingly interested in utilizing the power of Blockchain due to its potential of enhanced efficiency, security and cost reduction. However, these Financial Institutes cannot rely on Public Blockchains because of lack of privacy, poor throughput rate and limitation on transactions. Enterprises working in Financial Sector are subjected to massive data protection laws that require knowing identities and access level of all members within the network.
To overcome this major hurdle, IBM along with other contributors came up with an open source, production-ready, enterprise blockchain framework called “HyperLedger Fabric”.
Unlike other public access blockchains, HyperLedger Fabric supports distributed ledger solutions on a permissioned network. Basically, all participants on a HyperLedger Fabric network known identities.
HyperLedger Fabric has a modular architecture that basically separates all transactions to be processed into multiple phases. This methodology of separation has resulted in various advantages, mainly reduction in levels of trust and verification, network scalability and performance optimization. The modularity of this architecture also allows developers to build pluggable components into its core architecture.
Financial businesses due to regulations, privacy laws and competitiveness are dictated by the need for privacy of highly sensitive data elements. This privacy can be achieved through data partitioning on HyperLedger Fabric. Channels, supported in HyperLedger Fabric allow for data sharing only on need to know basis.
Unlike other more common Blockchains (mainly Ethereum), HyperLedger Fabric doesn’t require a built-in cryptocurrency. While it is possible to develop a digital token with chaincode, the process itself can be significantly expensive and time consuming. The lack of a cryptocurrency makes HyperLedger Fabric more practical for enterprise level business applications.
We at Studio Fintech (a venture of Systango Technologies) have build and launched a number of great fintech and blockchain applications. We have expertise in cryptocurrency development, cryptowallet development and cryptocurrency exchange development. We have long years of understanding as to how to blend blockchain and fintech development according to your custom needs. Contact us today to discuss your new blockchain and fintech development idea.