Compatibility and upgrades

(Mike Hearn) #1

Originally published at:

Business networks and compatibility zones Many P2P blockchain systems have some concept of a “network” – a set of configuration parameters that have to be shared for nodes to talk to each other. In the Bitcoin protocol these are things like the hash of the genesis block, the difficulty retargeting intervals, the inflation formula and…

(Ajitha) #2


For financial institutions like banks and insurance companies, where they know their entities with whom they are going to trade / interact with, my assumption is that I should go for ‘Business network’ instead of ‘Compatibility Zone’.

Can you please confirm my understanding?

Also is this ‘Compatibility Zone’ similar to the live network of Bitcoin or Ethereum?

It will be really useful if you can highlight some use cases which differentiates when we should opt for compatibility zones and Business Networks.


(Mike Hearn) #3

You always need to be a part of a compatibility zone. That is not optional.

A Business Network is something layered on top. It’s like a form of access control.

If we indulge in a nice fantasy, we can imagine one day that every business in the world is part of a single jumbo-sized compatibility zone. Everything from huge banks to small corner shops.

However, that does not mean your application wants to e.g. initiate a complex derivatives swap trade with that tiny corner shop the other side of the world. You probably want to add more sophisticated rules and onboarding, and check your counterparties have signed those agreements, on top of what the compatibility zone already provides. Then you want to add a Business Network.