Horizon – Unlock the Power of the Blockchain
Last week we talked about the usefulness of blockchain technology for trusted data exchanges. Further, the scalability trilemma was introduced as the major challenge for blockchains in industrial applications, like supply-chains.
This week we introduce Cryptowerk Horizon as a solution for this issue and how the SEAL, a portable verification token, plays an integral part.
Making blockchain viable with Crypotwerk
So, from the standpoint of data itself, you really start to ask yourself what is it we’re trying to achieve? If we now are owning a lot of the data and intellectual property in the customer experience as a provider, do we really want to share that data and to what extent do we want to share that data with our trading partners and regulators?
We want to do that on a selective basis.
Cryptowerk found a no-compromise way of addressing these challenges. We do that by taking any sized data and fingerprinting that data. We do that through something called the cryptographic hash. The cryptographic hash is a one-way math problem that takes any sized data and creates a unique fingerprint for it.
It’s something that has a very, very low chance of having any type of collision. This cryptographic hash is a compression and a fingerprinting technique that creates unique IDs.
What we’ve done at Cryptowerk is: What if we were to hash hashes and combine IDs together? We could get an incredible compression where we take the data itself and compress it down to these 32 bytes in the hash function. And then we hash and hash and hash. What we have is the ability to take massive amounts of data or the smallest amounts of data and bring them together into a bundle that we can then create a so-called Super Hash. And it’s that Super Hash that we’ll put out onto one or many public blockchains. We’ll get the advantages of a public blockchain from a security perspective, and we’ll reduce the throughput and transaction volumes that are often considered the bottleneck for public blockchains.
Cryptowerk Horizon takes that a step further and returns to the creator of the transaction a proof that you actually had this data, you anchored it into a blockchain, one or more, and that it existed in this particular format at a particular point in time. We call that a SEAL. And that SEAL is the mathematical proof that can be used at any time by any party that has the original data to verify that the data hasn’t been tampered with or manipulated.
Then share data, original data, maybe it’s with a regulator or a trading partner, and they share the SEAL of that data as well. And that way the recipient can verify the data.
Trust in a public blockchain. Don’t rely on any third-party intermediaries to interject or provide a level of trust. Use the math and use the open public blockchain nodes. Balancing the scale, security, and decentralization to get the best from each is what we do. Making it as easy as hash the data call with an API and then from a verify perspective, calculate and query for you. We do this at a factor of a million to 1 from a compression perspective, it brings down the cost and enables the opportunity to capture any level of detail. Be it an IoT sensor or be it a transaction from a customer record, and inventory movement, so on and so forth.
Establish portability and ease of verification with SEAL
There certainly are some challenges. One of them is the amount of data. How am I getting that information up into the blockchain? Cryptowerk certainly has a good solution for managing that process with this SEAL concept.
Some of the other challenges that we’ve found, is if you work across multiple verticals or you work across multiple supply chains, you may have to put information into multiple blockchains. How do you manage that?
Once you start to get that list in there, you are going to need to establish how you’re going to talk to the different blockchains, potentially. And then what level of data are you going to put up there?
Being able to collapse multiple pieces of data into a single element that can be put on the blockchain and then shared so that you can verify, certainly solves the challenges, especially in the public blockchain space around transactional speed and transactional cost.
But the other thing that is very important as you start to think about the secure supply chain is understanding what data you need to secure and what data potentially can be shared.
Not everything, not every piece of data, every scan or IoT read or every component of every business transaction needs to be secured on the blockchain. What we’re starting to see is the increasing use of blockchain for reference information, some hash entire datasets and anchor them as one. Being able to verify authenticity and being able to verify that the information that you’re processing is actually the expected information.
As you look to start this process it’s key to pick out those very important pieces of information that you need to have stored immutably. Those are anchored on the blockchain as either pointers or references to other transactions. And approaching projects and approaching proof of concepts in that manner where you pick out appropriate pieces of information. The other piece, which we’ll circle back to from a lesson learned perspective, is your ecosystem really needs to be able to work with you on the integration of blockchain and other technologies.
When putting information out across your supply chain, securing it, without your partners being able to participate, makes it challenging to leverage the secure supply chain.
So, start with a process that is either reasonable from a stakeholder perspective or maybe a single component of the information that you’re sharing across the supply chain, getting partners onboards, getting your ecosystem ready to go and then growing from that is a very pragmatic approach to being able to make the journey to a truly secure track and trace. And that allows you to not only learn from experiences but from a capital expense perspective, from a disruption to potential supply chain transactions, taking this approach will allow you to get the learnings that you need in order to leverage technologies like blockchain across your supply network.
However, there are some services and solutions that can help you accelerate the transformation of your blockchain empowered supply-chain.
Come back next week to find out more about supply-chain solutions!
Read the entire whitepaper “The Blockchain-Empowered Supply Chain” here.
Check out our partner Acsis!