What are Private Blockchains and how they are different from Public Blockchains?
Dec 12, 2017 Posted / 657 Views
It is still the chicken and the egg question for both Bitcoin and Blockchain- Is Bitcoin a product of the Blockchain or is it the other way around? However, Blockchain has gained much popularity in the past few years and the related terminology has developed immensely since its origin.
Read More Related Articles
There are several blockchains that have emerged in much less time such as public and private blockchains. Many jargons akin to blockchain originated but the terminology is frequently misapprehended. This is simply because of the fact that both public and private blockchain have many resemblances. For instance:
-Both are decentralized peer-to-peer networks, and every participant in this technology sustains a duplicate copy of a distributed append-only ledger in which digitally signed transactions are maintained.
-Both these blockchains retain the imitations of the ledger in synchronization with the assistance of a protocol referred to as consensus.
-Both provide promises that the altercation of the ledger is impossible, even if few participants are flawed or malevolent.
Anyone can partake in a public blockchain as it is an open-source network and the data is distributed to all, which means that there is no central authority or entity in charge. The rights management is not done for a public blockchain and anybody can become a component of the consensus
According to this system, everyone can join/leave/audit the public blockchain ecosystem and the network still remains trustless. Trustless in the context of Blockchain means that the users do not require to set-up a reliable entity to look after the activities on the blockchain and in spite of that it will be secure and thus able to resist the censorship.
However this blockchain is self-administrated and decentralized, but still maintains a trustless freedom that is guaranteed on the system by its mechanism of decision- making (called a realm). Thus this network and the database are very intricate and almost impossible to tamper.
Public blockchains like Bitcoin or Litecoin devour a colossal degree of energy, time and capital. These blockchains require currency mining and consequently in return make certain that trustlessness is granted along with tamper resistance.
Private Blockchain is a complete contradictory of the public blockchain. It is because of countless utilities that are public to everyone on the above-mentioned blockchain are actually not so open on this blockchain.
Not everyone can read/write or audit this blockchain at any point in time except few individuals which are given consent to do the same. Moreover, in private blockchains, there is a distinct entity or enterprise, which can be identified as an owner of the blockchain. This entity or individual can alter/delete/change instructions on a blockchain whenever required. Consequently, private blockchains cannot be termed as decentralized and therefore can only be called as a distributed database, which is protected with the help of cryptography.
However private blockchains are faster and affordable in contrast to public blockchain as individuals do not have to waste a huge time and finances to arrive at a consensus. Although, to a large extent it is not secure and vulnerable in comparison to a public blockchain as it can be altered/written as and when required by the parties involved.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
Hottest Blockchain Newsletter
For updates and exclusive offers, enter your e-mail below.