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Ethereum Smart Contract Development

You're reading from  Ethereum Smart Contract Development

Product type Book
Published in Feb 2018
Publisher Packt
ISBN-13 9781788473040
Pages 288 pages
Edition 1st Edition
Languages
Author (1):
Mayukh Mukhopadhyay Mayukh Mukhopadhyay
Profile icon Mayukh Mukhopadhyay

Table of Contents (18) Chapters

Title Page
Dedication
Packt Upsell
Contributors
Preface
1. Blockchain Basics 2. Grokking Ethereum 3. Hello World of Smart Contracts 4. A Noob's Guide to DApps and DAO 5. Deep-Diving into Smart Contracts 6. Solidity in Depth 7. Primer on Web3.js 8. Developing a Cryptocurrency from Scratch 9. Enterprise Use Cases 10. BaaS and the Dark Web Market 11. Advanced Topics and the Road Ahead 1. Other Books You May Enjoy Index

Consortium blockchains


As we discussed in the previous chapter, consortium blockchains lie in between private and public blockchains, and also in the middle of the permission spectrum. In this section, we will do a case study using consortium blockchains adopted by banks.

Banks need blockchains to make money transfers faster, easier, and cheaper. The following are the limitations of a public blockchain if used for this purpose:

  • Speed: Banks need to do transactions in real time, while Ethereum takes around 12 sec to confirm one transaction.
  • Permission: Anyone can take part in the consensus for a public blockchain. But banks prefer to remain an authority or hire a regulatory body.
  • Security: Due to the limited number of participants, proof-of-work is not secure enough.
  • Privacy: Basically divided into identity privacy and data privacy, it is quite hard to maintain such privacy on a public Ethereum blockchain.

Consortium blockchains generally employ proof of authority, where there is no need for mining...

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