2. Ardor’s Blockchain as a service platform for business: Ardor uses the Proof of Stake consensus mechanism. Ardor calls its sidechains ‘childchains’, and they are tightly integrated into the main chain. Security is enhanced because all transactions are processed and secured by parent chain forgers. Most transactions are pushed down to the childchain level, as the parent mainchain retains minimal features. Global entities such as assets and currencies across chains can be accessed through childchains.
The problem with Ethereum is that transactions are executed one after another. However, Aelf differs in its parallel computing blockchain capability. It scales transaction computing power inside a single side chain. Now imagine the power when you have thousands of side chains. For any unrelated transactions, it is safe to execute them concurrently.

Things get a bit more interesting when you replace the single custodian with a federation of notaries by way of a multisignature address. In this model, a federation of entities must sign-off on movements to and from the sidechain, so more parties must be compromised for a failure situation to unfold where the bitcoins frozen on the main chain are stolen.
Let me explain. The Lightning Network allows for the creation of “micropayment channels” across which multiple Bitcoin transactions can be securely performed without interacting with the blockchain, except for the initial transaction that initiates the channel. There is no counterparty risk: if any party ceases to cooperate, and/or does not respond within an agreed-on time limit, the channel can be closed and all its outstanding transactions kicked up to the blockchain to be settled there.
Are there any legitimate uses for it? Possibly, if you have an institution that can’t establish legal relationship between them. I am not sure where can we find this use case in the wild; most corporations and institutions usually thrive on the legal documents they have signed in order to keep each other from lying/hiding/deleting/changing data. Since each institution can keep the local copy of all transactions within their own database, the question becomes a matter of dispute resolution, as opposed to a lack of trust.
“Blockchain could significantly reduce time delays and human mistakes, and monitor cost, labor, waste and emissions at every point in the supply chain. In the food sector, a manufacturer could automatically identify contaminated products in a matter of seconds and wouldn’t need to pull an entire product line from store shelves in the case of contamination.”
As you know, we at LTP have been doing a lot of research to understand other use cases of blockchain apart from Bitcoin-based payments. Recently we had released a comprehensive analysis of 50+ startups and 20 use-cases of blockchain. Though there have been news of large companies accepting bitcoin (Ex.: Amazon, Microsoft, Dell) and the overall acceptance reaching a 100,000+ merchants figure, upon deeper examination we realize that large corporations do not store the Bitcoin payments. They generally partner with a Bitcoin payment processor who converts the Bitcoins to cash as and when they receive a payment and this converted amount is what the corporates take into their account. What a bummer!
Blockchain was invented by Satoshi Nakamoto in 2008 to serve as the public transaction ledger of the cryptocurrency bitcoin.[1] The invention of the blockchain for bitcoin made it the first digital currency to solve the double-spending problem without the need of a trusted authority or central server. The bitcoin design has inspired other applications,[1][3] and blockchains which are readable by the public are widely used by cryptocurrencies. Private blockchains have been proposed for business use. Some marketing of blockchains has been called "snake oil".[9]
External Account, which stores ETH balance – This contains the address of the User that was created using the Web3.js API, e,g, personal.newAccount(…). These accounts are used for executing smart contract transactions. ETH is your incentive received for using your account to mine transactions. The address of the account is the public key, and the password of the account is the private key.
As you can see, several of these real-world demands for the evolution of the initial Bitcoin implementation are still highly relevant. Trade-offs between scalability and decentralization are demonstrated with Ethereum’s focus on decentralization first and resulting complexities in developing scalable solutions. The increased emphasis on smart contract functionality, pegging real-world assets to blockchains, and experimentation of altcoins that are currently ongoing also represent the forward-thinking ideas outlined in the paper.
Sidechains allow cryptocurrencies to interact with one another. They add flexibility and allow developers to experiment with Beta releases of Altcoins or software updates before pushing them on to the main chain. Traditional banking functions like issuing and tracking ownership of shares can be tested on sidechains before moving them onto main chains. If the security mechanisms for sidechains can be bolstered, sidechain technology holds promise for massive blockchain scalability.
@tradles – thanks for taking the time to explain this. OK – so I get the debate around blockchain bloat and the (grudging) inclusion of OP_RETURN, etc., but what I’m missing is that I can only really see one scenario where embedding any identity data into the blockchain makes sense…. and that’s when I want to *associate* an identity with a transaction I’m performing.
A blockchain is a decentralized, distributed and public digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network.[1][18] This allows the participants to verify and audit transactions inexpensively.[19] A blockchain database is managed autonomously using a peer-to-peer network and a distributed timestamping server. They are authenticated by mass collaboration powered by collective self-interests.[20] The result is a robust workflow where participants' uncertainty regarding data security is marginal. The use of a blockchain removes the characteristic of infinite reproducibility from a digital asset. It confirms that each unit of value was transferred only once, solving the long-standing problem of double spending. Blockchains have been described as a value-exchange protocol.[13] This blockchain-based exchange of value can be completed quicker, safer and cheaper than with traditional systems.[21] A blockchain can assign title rights because, when properly set up to detail the exchange agreement, it provides a record that compels offer and acceptance.

The term “sidechains” was first described in the paper “Enabling Blockchain Innovations with Pegged Sidechains”, circa 2014 by Adam Back et al. The paper describes “two-way pegged sidechains”, a mechanism where by proving that you had “locked” some coins that were previously in your posession, you were allowed to move some other coins within a sidechain.
Intellectsoft is a global full-cycle custom software development company that helps businesses to overcome the technological challenges of digital transformation through innovation and the use of emerging technologies, like blockchain, augmented reality, artificial intelligence, Internet of Things, and cloud computing. Intellectsoft has been operating in the IT industry for over 10 years, delivering solutions to Fortune 500 companies and legen ... Read more
“Private blockchains are valuable to solve efficiency, security and fraud problems within traditional financial institutions, but only incrementally. Private blockchains will not revolutionize the financial system. Public blockchains, however, hold the potential to replace most functions of traditional financial institutions with software, fundamentally reshaping the way the financial system works.” 
Cuando esta transacción recibe las suficientes confirmaciones, se manda una notificación a la otra cadena de bloques (la que tú quieres utilizar) en el que se adjunta la prueba de que las monedas han sido enviadas por ti a esa dirección especial de la red. Tras ello, en la sidechain se creará, de forma automática, el mismo número exacto de activos que bitcoins se mandaron, dándote a ti el control de los mismos. Es decir, replica en el nuevo activo la cuantía que has enviado de la cadena principal a la sidechain. ¡Muy importante! Recordar que no se han creado o destruido nuevos bitcoins. Simplemente se han movido hasta que no estén usándose en la sidechain.

Bitcoin blockchain design has been done for a specific purpose, and this is a money (crypto currency) transfer. But what will we do, if we want to change or add some functions of the bitcoin blockchain? What if we want to transfer other assets rather than money, what if we want to do transactions automatically when pre-determined events occurred. Or what if we don't want other people see our transactions, or track our transactions' history. You can ask countless of what if questions and every answer to these questions drive you to a different blockchain or configurations
My take is that the Bitcoin architecture is a solution to the problem of how to maintain consensus about a ledger when the participants are unknown and many of them are adversarial (I know this is loose language… computer scientists working in the consensus space are more precise but I think this captures the essence…. i.e. we’re explicitly in a world where there is no “leader” and no identities for those providing the consensus services).
The problem with Ethereum is that transactions are executed one after another. However, Aelf differs in its parallel computing blockchain capability. It scales transaction computing power inside a single side chain. Now imagine the power when you have thousands of side chains. For any unrelated transactions, it is safe to execute them concurrently.
Eris Industries, aims to be the provider of shared software database using blockchain technology. Blockstack, aims to provide financial institutions back office operations, including clearing & settlement on a private blockchain. Multichain, provider an open source distributed database for financial transactions. Chain Inc., a provider of blockchain API's. Chain partnered with Nasdaq OMX Group Inc., to provide a platform that enables trading private company shares with the blockchain.
Many people believe this is the future of the blockchain. It maintains network security and allows for scalability. The biggest criticism is that it heavily favors those with more funds as smaller holders have no chance of becoming witnesses. But the reality is, smaller players have no hope of participating in Proof of Work either, as mining from your own laptop at home is no longer a reality. Smaller players get outcompeted by bigger players who have massive mining rigs. STEEM and EOS are examples of DPOS blockchains. Even Ethereum is moving to POS with its Casper project.
Public blockchains are just that, public. Anyone that wants to read, write, or join a public blockchain can do so. Public chains are decentralized meaning no one body has control over the network, ensuring the data can’t be changed once validated on the blockchain. Simply meaning, anyone, anywhere, can use a public blockchain to input transactions and data as long as they are connected to the network.
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