Read the full case study here.
Permissionless public blockchains are accessible to anyone, but they’re often unsuitable for heavily regulated institutions, like banks or public-sector initiatives. Permissioned private blockchains offer what permissionless public ones lack, but they also cost a lot to develop and maintain, making them hard to scale. Yet blockchain remains the ideal solution for many use cases.
The Inter-American Development Bank (IDB) struggled to find the balance by using different networks for different projects. But this variety came with other issues, like compliance, technical support, and accountability. These challenges prevented IDB’s pilot projects from expanding into enterprise-level projects.
IDB Lab is the innovation laboratory for IDB. It set about finding solutions to the problems of regulatory compliance, support, and governance. As it looked into the problem, IDB Lab noticed similar struggles throughout Latin America and the Caribbean (LAC). Organizations were looking for an alternative to permissionless public and private blockchain networks to deploy their solutions.
Permissioned public networks—combining the benefits of the other blockchains without their drawbacks—seemed like the answer. Successful networks already existed in the EU, and IDB Lab thought it could develop one for LAC. In March 2019, with support from a global alliance for developing blockchain in Latin America and the Caribbean, IDB Labs funded a project to create LACChain, a permissioned public blockchain infrastructure in an effort to build a scalable and sustainable network for the LAC region…and beyond.
Now, LACChain, which is built using Hyperledger Besu as an enterprise Ethereum client, has become the world’s largest public permissioned network with 15 countries participating in the ecosystem. It has over 190 nodes and supports more than 60 projects, including 40 that impact financial and social inclusion. And there is a strategy for long-term orchestration of the network via the not-for-profit LACNet.
The Hyperledger Foundation team worked with LACChain on a case study that details the goals and approach for creating the network. The behind the scenes look at launching LACChain also delves into the technology and governance planning behind the project as well as results to date and plans for growth for this network.
Read the full case study here.