The internet enabled a new generation of distributed platforms to run in the cloud, facilitating the outsourcing of certain processes and the more efficient storage of information. With current systems, many transactional processes still require a third party to establish trust, such as an escrow, law firm, or clearinghouse, resulting in high costs, fraud, and inefficiencies.
Blockchain eliminates the need for trusted third parties, such as banks, governments, clearinghouses, accountants, and notaries.
What’s in a block?
All transactions are logged, including information on the time, date, participants, and amount of each transaction.
How does it work?
Programmed mathematical principles—the “protocol”—govern the method for verifying transactions and establishing consensus. Cryptography allows each participant on the network to manipulate the ledger in a secure way.
Is it restricted to currency?
The ledger can record any type of unit—currency, property, commodity, vote, rewards points, and so on—each of which is individually identifiable and programmable. Smart contracts are built upon this.
Blockchain magic triangle: problems that blockchain can solve
- Provenance: An asset can be placed on a blockchain with a unique ID and the provenance can be tracked further. This process could be useful for detecting counterfeits in spare parts and pharmaceutical supply chains, for example.
- Chain of custody: Blockchain creates a transparent record of events (often as a part of legally binding contract) that can’t be tampered with taking place against an asset (such as financial transactions or healthcare records).
- Information sharing between mutually distrusting parties: Blockchain removes the need for a trusted third party to be engaged to mediate between these parties, such as brokerages, information aggregators, and so on.
Virtusa xLabs blockchain
Our solutions focus on six main areas:
- Digital identity
- Regulatory and legal constructs
- Security and privacy
- Proof of work vs proof of stake
- Exception processing
From design to deployment, Virtusa xLabs helps clients identify parts of business that are vulnerable to blockchain threats as well as create new business models.
Strategy and design
- Blockchain adoption/awareness workshops
- Use case validation/creation
- Advisory on partnerships
- Research covering more than 400 blockchain startups across sectors
- Cloud-hosted experimentation environment
- 8+ blockchain variants ranging from Ethereum to Quorum
- Connectors to leading customer relationship management and enterprise resource planning systems
- Off-the-ramp testing capabilities with large datasets
- 100+ pre-compiled use cases across different sectors
- Solution accelerators in payments, credit monitoring, check fraud management, trade finance, and OTC derivatives such as interest rate swaps and covenant management
- Security and privacy
- Keyless cryptography
- Fully homomorphic and format-preserving encryption
- Steering the direction of industry through participation in ISO TC-307 blockchain and distributed ledger