ConsenSys and EY have commenced the formation of a blockchain protocol suited for enterprise clients. According to a press release on March 4, ConsenSyns said that the ‘Baseline protocol’ will leverage Ethereum’s Mainnet to deliver its distributed services.
This new innovation is meant to increase corporate efficiency especially in communication systems. As it stands, companies spend a fortune to integrate systems like ERP and CRM without a proper guarantee for functionality in their projected life time. Blockchain on the other hand offers an opportunity to create a common frame of reference although it is yet to gain the market’s confidence in terms of data security and privacy.
ConsenSys Group Executive for Mainnet, John Wolpert, is however optimistic that Baseline protocol will change the narrative in blockchain and attract enterprises to the market;
“A lot of people think of blockchains as the place to record transactions. But what if we thought of the Mainnet as middleware? This approach takes advantage of what the Mainnet is good at while avoiding what it’s not good at.”
Baseline Protocol in Detail
The whole idea is tokenization of financial services with blockchain as the underlying tech to facilitate these operations. Given the sensitivity on information sharing, Baseline implemented an open-source using the Zero-Knowledge Proof (ZKP) consensus within its ecosystem. Basically, enterprises can be mathematically recognized as network participants without the hustle of sharing private information.
This platform will further leverage smart contracts to create digital agreements on Ethereum. It is also designed in a compartmental manner such that enterprises can only access information from a permissioned chain. Despite its potential, Baseline protocol is not very scalable given the fundamental ZKP consensus. This algorithm is highly computational which in turn increases the amount of gas to be spent on Ethereum.
Notably, this decentralized project has attracted Microsoft which is set to contribute to its development. A technical steering committee is also being established with over 10 members confirming so far. Other significant players who are onboard include; Duke University, ChainLink, MakerDAO, Envision Blockchain and Splunk.
The Baseline protocol code is currently available for testing although this has been limited to a specific group. Plans are however underway to make it open to the general public over the course of March. EY’s Global Blockchain leader, Paul Brody, was keen to highlight this journey;
“Over the last two years, we have been advancing the state of the art for private, secure transactions on public blockchains. This takes the groundwork we have built and starts filling in gaps such as enterprise directories and private business logic, so companies will be able to run end-to-end processes like procurement with strong security.”