Most of today’s pilots in SCM use private or consortium solutions, where you have to consider several parameters, like the block size or intervals. These parameters can be defined by the members of the network themselves and enable the to be designed for the required data throughput (Tx/s). In addition, the write and read rights can be selected according to the application, so that the degree of transparency (privacy) can be defined on a case-by-case basis. The organization can then already think about identifying physical objects with identification numbers and linking them with digital data on the , as an example. The immutability of the transactions and the referring time stamp then create and guarantee a clear traceability (determination of origin) of goods.
By using technology as the underlying infastructure, Smart Contracts can enable the automation of processes. The organization should decide from the beginning whether they want to use them and for this reason already assess their level of digitalization. If required information already exists in digital form, processes that were previously carried out using paper-based documents can now be handled more efficiently and securely using digital and irreversible storage through smart contracts. Nevertheless, a lot of organizations don’t yet fulfill the digital requirements to already implement them effectively. Furthermore, the security gained through redundant archiving of business logic on the distributed , might bring with it scalability problems, the organization should consider that right from the beginning.
5. Consensus Mechanism
A lot of frameworks let you define the consensus mechanism individually. We are talking about the mechanism nodes use to come to a joint agreement. This should be in the center of discussion when deciding for a framework to test-out. The known identity of the participants of a private network makes it possible to use adapted variants of the PoW or PoS approach or other alternative approaches such as PoA or PBFT. In such a system the adjustment of the parameters, the write and read rights, as well as the consensus mechanism itself can be decided on in the agreement of the participants. A subsequent change of the protocol later on becomes more difficult, the more participants the consortium (the supply chain) represents.
Tan Gürpinar
Published at Thu, 25 Apr 2019 16:51:21 +0000
