HP hopes to leverage the immutability and decentralization of blockchain to build a blockchain network

Baozou Commentary : Blockchain has two very eye-catching features, namely, immutability and decentralization. Immutability ensures that records are authentic and reliable, reducing fraud; decentralization eliminates intermediaries and reduces costs. The well-known old company HP also hopes to leverage blockchain to build a decentralized network, but first of all, it must take appropriate security measures to solve regulatory issues, otherwise blockchain technology and blockchain-based platforms will not be able to operate.

Translation: Nicole

HPE, also known as Hewlett Packard Enterprise, whose parent company is the $52 billion technology company Hewlett-Packard, recently emphasized the importance of immutability and decentralization of blockchain networks.

Andrew Dare, Architect for Financial Services Innovation at HP UK, said:

“Blockchain provides an opportunity to bring different things together and record an immutable record securely and quickly anywhere with little to no chance of fraud. That’s the real value of the technology.”

Blockchain, reshaping business practices

Dare and HPE believe that blockchain technology is still in its infancy. Its potential goes far beyond its application in the financial industry, because the ability of blockchain technology to store information on an immutable ledger can be effectively applied to all walks of life.

However, Dare noted that immutability and decentralization are the two most important features of blockchain networks because they allow participants in the network to send payments to each other without intermediaries. They also allow banks and large financial institutions to implement labor-saving operations.

Currently, a large number of banks and financial institutions are working to develop and implement blockchain technology. However, even a multi-billion dollar institution like Accenture has proposed the concept of an editable blockchain.

Essentially, a centralized or editable blockchain is a network that can be controlled and manipulated by network administrators. On a more technical level, an editable blockchain is no different than a traditional SQL database.

HP believes that in order for the blockchain network to operate normally without major issues surrounding security and external attacks, decentralization and immutability are the most important features to ensure the normal operation of the network.

Regulation and blockchain

As the blockchain market continues to increase in size and value, more companies like HPE are beginning to understand and appreciate the core concepts and principles of cryptocurrencies and blockchain networks.

Banks and financial institutions realize that the real barrier between blockchain implementation and development is that integrating a decentralized network is nearly impossible within the context of the current financial regulatory framework.

In fact, this obstacle is what led Accenture to pursue the concept of an editable blockchain. Central authorities and established regulators will refuse to implement blockchain technology if banks cannot prove they can control and manipulate transactions.

In order for the $1.5 billion blockchain market to work, banks must begin to address the issues of implementing blockchain technology and decentralized networks without violating financial regulations.

As HPE states, blockchain technology and blockchain-based platforms will not work unless appropriate security measures are in place. Therefore, for the benefit of banks and their consumers, capital and talent will need to be allocated in a smarter way, by embedding decentralized infrastructure into existing systems rather than trying to change the core principles of blockchain technology.