The Blockchain technology is perceived as a disruption in the financial technology (fintech) arena. Put simply, a blockchain stores a sequence of transactions, serving as an authoritative source on the transaction history, serving for settlement purposes, and serving for archival and auditing purposes. Today's fintech world is based on regulation-driven System-of-Records (SoR), which are reconciled by arcane technology and rely on centralized authority. Blockchain holds the potential for enabling direct and efficient business-to-business transactions.
Driving the Blockchain technology is a core mechanism for consistently and irrevocably storing a sequence of blocks, without which the entire approach collapses.
Today, as serious institutions in the financial world enter the Blockchain technology arena, there is a clear departure from the BitCoin blockchain.
Enter VMware: VMware is actively participating in advancing the infrastructure underlying the Blockchain technology in order to provide the most secure, reliable, and scalable Blockchain platforms.
In order to remove existing barriers for adoption, there is a clear need for building robust and secure high-throughput, high capacity distributed ledger technologies that rely on careful distributed-system design and strong engineering.
VMware is partnering with members of the Linux Foundation Hyperledger project in order to align with industry APIs and standards.
Our unique vision centers around five points:
permission, private distributed ledgers, not Proof-of-Work.
- high-throughput data replication, not quorum-based.
- a world of many ledgers , not a global database.
- seamless core cross-ledger transaction support, no escrow required
- built-in reconfiguration capability and membership, not just authX/authZ
Atop a distributed ledger, which is the "ground truth" from which information is drawn, the fintech disruption occurs at two additional levels: Contracts, and Services.
- Contracts: Broadly speaking, Contracts are formats for expressing secure business transactions. Contracts leverage the underlying ledger and anchor within ledger blocks. There is a growing interest in utilizing the protocol framework for a variety of use-cases. One is carrying direct business-to-business deals without involving a trusted third part. Another is to assume there is a settlement agency involved, and use Contracts to facilitate a fast turnaround and versatility in expressing transactions.
- Services: Having a Blockchain of transactions opens access to data which was not accessible before. There are a lot of potential services and applications that can be built to make use of the data: Business analytics, prediction tools, personal management apps, identities, and many many more.