Chapter 3. Designing a Blockchain Network
In Chapter 2, you’ve identified that blockchain makes a good technology fit for your scenario. In this chapter, we’ll explore some of the aspects of designing a blockchain-based solution.
Broadly speaking there are two models used to initiate a new blockchain network:
- Founder led
A single organization initiates the network. They won’t be doing this in isolation, however. It’s expected they will have deep industry knowledge and will be working with stakeholders within the respective industry. The founder will define the governance model and policies of the network, and will invite other organizations to join.
- Consortium led
A group of companies initiate the network. For example, a group of banks work together to build a new blockchain-based trade finance platform that they each benefit from using. It’s possible this network could remain private to those within the initial consortium, but it’s much more likely that once it’s built, they will allow other organizations to join the network. It’s also possible that ownership and governance will be moved later to a new company. For example, the trade finance platform we.trade was formed by a consortium of banks and later moved under the ownership of a joint venture.
Regardless of how the network is created, it will require flexible governance policies. The blockchain needs to be adaptable over time, allowing for new types of governance models to be introduced as the network ...