A Business-Oriented Schema for Blockchain Network Operation

Abstract

The earliest proposed blockchain is a completely open operating mode, that is the public blockchain, where all operating nodes can freely join or exit the blockchain network without any restriction. Because of the inefficiency and the private care of the public blockchain, the later proposed consortium blockchain or private blockchain restricts the behavior of joining of the operating nodes according to an advance agreement. The consensus mechanism, the most important feature of the blockchain, is however closely related to the chosen operating mode. Different from the endogenous incentives of the public blockchain, the operating nodes in consortium blockchain are usually based on the extrinsic values from commercial needs, which actually have weakened the incentives of blockchain system. This paper is trying to design a business-oriented schema for blockchain network operation, where the consortium-like nodes can make up a blockchain network but offer a public-like blockchain network services with a uniform standard. The fundamental blockchain network can set up enough incentive to drive the operating nodes focusing on how to improve their operational and service capabilities. Therefore, the business-oriented schema will enable the final business service providers (application developers) and the business service consumers (application users) to use the fundamental blockchain network services easily and conveniently as the today’s Internet service.