Blockchain technology is a relatively nascent technology that has caught on like wildfire. All most all businesses are adopting the technology in one form or the other. Blockchain application development is done on both public and private blockchain platforms depending on the utility and desired characteristics of the end product. This blog post will give you an insight and a comparison on the Public Blockchain vs Private Blockchain.
What is blockchain?
Blockchains comprises a growing list of records called blocks and cryptocurrency links these blocks to one another.
It is an open, verifiable ledger that can record transactions between two parties effectively post verification and validation. Initially, blockchains were developed as the ledger for recording bitcoin transactions in order to solve the problems related to double spending of digital currency.
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Today, the blockchain technology has expanded to all sectors of business like smart contracts, notary, international money transfer, logistics, Initial coin offering and much more.
What are private and public blockchains?
In a public blockchain, anyone can join the network. The network is open and allows anyone to participate in the network, execute the consensus protocol and maintain the ledger. This openness of the network implies that there is no privacy in transactions.
The private blockchain restricts the entry of members into the network. One must receive an invitation to be a part of the network and the network starter validates the entry of a new member by setting up a set of rules.
Businesses would set up a permissioned network and restricts who can participate in the network and in which transactions. Participants would receive an invitation or permission to join. They would add further participants to the network or there would be a regulatory authority who could issue licenses for participation. At times, there would be a consortium which makes the decisions instead.
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Public Blockchain Vs Private Blockchain
How different is public blockchain versus private blockchain from each other? Well, it is safe to say the differences are not so stark anymore. Nowadays, there are visible pros and cons or difference between public blockchain and private blockchain but with time, these lines will definitely blur.
Before we begin to compare the private blockchain and public blockchain, let us discuss why there is a need for them.
Well, the blockchain technology rose to the limelight due to its transparency in the validation of transactions. But the boon turned into bane soon, when people started worrying about the privacy of the data stored in such public blockchain and private blockchain were born.
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Let us begin with the similarities that exist in private blockchain vs public blockchain. Public blockchain versus private blockchain are decentralized peer to peer networks and the mutual consensus determines the validation of the transactions. The ledger is immutable and it is almost impossible to hack the data.
How do public blockchain and private blockchain differ?
Conclusion: Which one to vouch for?
Well, we definitely can’t pitch one with the other. The best option is to strike a balance between the two. Interoperability is the key to overcome the hurdles faced by public blockchain vs and private blockchain by enabling them to interact with each other and exchange values across platforms.
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