Blockchain has been gaining more and more popularity lately and there are more and more questions about what it is, what types of blockchains exist, how to use it and what benefits can be derived from it. As different types of blockchain have emerged, we need to realise the public vs private blockchain.
Public blockchain
In a public blockchain, any transaction is done without any control, in view of the fact that all the transactions which occur in the system are monitored by all the members of the blockchain. As a result, such an application is considered decentralized and requires little maintenance.The security of these systems is assured by cryptographic information technology. The most common algorithms are proof of work or proof of stake.
Advantages of public blockchains
- Advantage of protection against developer interference in transactions, which completely removes the risk of censorship.
- It is possible to interact with other software, and this will involve even more users.
- The security of each user’s data, although little money is spent on maintenance. The most secure system today is bitcoin.
Generally speaking, technology has evolved enormously over the last few years because of the public blockchain.
Private blockchain
Private blockchain restricts access to users. Only some people can carry out transactions, manage databases and carry out verifications. For that reason, such a system is regarded as centralized, i.e. in contradiction with the public system.
Network monitoring is performed from the top of the pyramid, which is convenient to update the system in a timely and efficient manner. These systems are generally required by organizations that maintain a system of accounting.
Private systems do not require a proof-of-work algorithm, it is connected only at will for increased security.
The advantage of private blockchains
- Cheap transactions because they are verified by a few high-paying nodes
- The TPS parameter can be increased
- Fast transactions
- Because the transactions are accounted for, the company can cancel the transaction, suspend it, or change the balance at any time.
Public blockchains are commonplace and everyone knows what bitcoin is, but the same cannot be said of private blockchains.
Hyperledger
The most celebrated private blockchain in existence at this time is Hyperledger. Its major investment sectors are banking, the Internet, insurance and manufacturing. Hyperledger will probably be able to fully integrate many centralised companies in the short term. Private blockchain, in contrast to Bitcoin, forces private and centralized businesses to comply with the laws.
Private vs public blockchain
To summarise the article on «private vs public blockchain» , it is safe to say that public blockchain vs private blockchain are in demand, but in different areas. It is impossible to say for sure that one system is better than the other, both have their disadvantages and their advantages. The two systems are currently being worked on, such as Nuco’s Dubbed Aion project. The system should be robust and secure.