Hybrid by definition means a combination of two different elements, to result in something new. Our Hybrid technology combines properties of public and private systems, to provide enterprise ready blockchain networks. This is achieved by using the public blockchain network to provide higher levels of immutability, access control schemes, and custom validation algorithms.
The Nexus Hybrid Blockchain has the following properties and features:
- The existing system or application gains the security properties of the hybrid blockchain
- The private blockchain gains the security parameters of the public blockchain
- The potential to comply with GDPR, similar to that of a private database or Cloud service
- Permissioned access schemes supported by LISP (Location-ID Separation Protocol) forming a VPN (Virtual Private Network)
- Semi-permissioned access scheme to create tiers of data access between users, service providers, and partners to form an ecosystem
Within a hybrid ecosystem, the Whole is Greater than the Sum of its Parts:
A public blockchain is a highly secure ledger that is validated by many nodes that form a global consensus (i.e without the requirement of a trusted third party). It is considered a ‘trustless’ and ‘permissionless’ system. Some properties include:
- Hardened security through well tested implementations of game theory
- Immutable, as appending to the ledger requires a large amount of resources
- Security gained through many participants in the consensus process
A private blockchain is generally a ‘permissioned’ system, and validated by a private group of nodes through various consensus processes. Some properties include:
- Privately managed validators, making security easier to maintain.
- Ability to conceal contract logic and meta-data that is stored in the chain itself.
- Full control over the network rules and who can participate in the system by the use of permissioned access.
The cloud is a virtual space that resides on many computers that allows dynamic resource allocation. Another term for it is ‘elastic computing’. It can house software such as databases, web applications, or virtual servers. Some properties include:
- Higher levels of scalability when compared to public or private blockchain technology
- Freedom to delete or edit the information, to comply with regulations such as GDPR.
- Ability to record sensitive, private or proprietary data with controlled access to this information
“The European Union’s new General Data Protection Regulation (GDPR) requires unprecedented levels of data protection for EU residents…” – Ernst & Young
“US states pass data protection laws on the heels of the GDPR” – Data Protection Report
Due to the growing concern over privacy and management of data, GDPR regulations have become a popular subject. In the midst of these discussions, GDPR has created an obstacle to the greater adoption of blockchain technology. In response to this, Nexus technology is able to provide the levels of integrity inherent to a blockchain (via proofs and hashes) to hybrid networks, whilst the management of raw data is through a private database or cloud. Therefore, we provide a technological foundation in which those integrating have the potential to comply with data regulations such as GDPR.
It is often claimed that the ratio of demand to supply for blockchain developers is 20:1, which has led to the high costs associated with blockchain development, ultimately resulting in low levels of business adoption. Existing Smart Contracts have also experienced issues in relation to ease of use and integration, a Turing complete language being a notable example. Therefore, Nexus has designed its architecture as a seven-layered software stack that includes a 64-bit register-based Virtual Machine for contract processing. The Nexus Software Stack is accessible through APIs, providing interoperability with existing applications and systems.