Blockchain is taking the world by storm. There are two types of blockchain available. These include- public and private blockchain. As the name suggests, the public blockchain does not need permission, while the private blockchain needs permission to access the network place.
In the public blockchain, anyone can join the network without the permission of the other user or the admin. You can read, write, and take part in the transactions when you are in the public blockchain. It is a decentralized system that no third party would have control over the network. When the data is verified on the blockchain, you cannot change or delete the entry. No one has control over the data.
On the flip side, the private blockchain would need permission to participate in the blockchain activities on the network. There are restrictions on the type of transactions you can carry out and who all can take part. The worst thing about the public blockchain is that any individual can come and write the data on the blockchain, and the other individual can view it.
Examples of public blockchain platforms include Litecoin, Bitcoin, and Ethereum. These are permissionless, but it protects the identity of the user by keeping them anonymous. There is a discussion that the Ethereum blockchain cannot be used to control the permission to the data. In the actual scenario, you can give permissions to the people who all can access the data, but you are not provided with the required tools that you find on the private blockchain platform.
In the public blockchain, everyone must follow the rules and stay transparent. Honest participants also get rewards. In the private blockchain, people who misbehave have to suffer.
In the public blockchain, the bitcoin system transactions that are carried out would remain public. You can view the address of the sender’s wallet, the amount that is transferred, the wallet address of the recipient, and the time at which the transaction took place.
Businesses and individuals use a private blockchain. All cannot view the details of the transactions. The private blockchain would allow only the authenticated machines to join the network and carry out the ledger process. You can only carry out the transactions that are approved on the blockchain. There is an institution that governs and runs this blockchain. Due to this, it has become an ideal choice for business people to use blockchain. The transactions they are carrying out, and the transaction amount would remain secure.
Benefits of public blockchain
Here are a few benefits you can reap by using public blockchain:
Read and write the data
Anyone can take part and carry out the transactions on the blockchain. All can view the transactions.
Distribution of ledger
There is no centralized database available. Every node would take part in the verification of the transaction.
When you write something to the blockchain, you cannot change it.
The public network is highly reliable compared to the private. Yes, you heard it right. This is due to decentralization. There would be no third party involved in between the transactions that are carried out between the sender and recipient. There will be many nodes, so the unethical people find it tough to attack the system and gain unauthorized control. The private blockchain gives more scope for hackers to attack and steal valuable data. There are high chances for the bad actors on the network to pose a serious threat to others on the network.
Benefits of private blockchain
Few of the benefits that you can reap using private blockchain include:
Enterprise controls the blockchain transactions
The resources are under the control of the authorized enterprise, and only authorized users can access the blockchain to carry out the transactions.
The nodes are distributed locally, so there would be very less number of nodes to take part in the ledger, and therefore the transactions would be quick.
You can add the nodes on-demand with the increase in the number of users and transactions.
The enterprise must adhere to the compliance requirements. When you have control over the infrastructure, it becomes easier for you to stay compliant.
Consumes less power
The public blockchain would use a lot of electricity to run as there will be a lot of nodes connected to the network. The best part of using private blockchain is that you can save big on the electricity bills.
Anyone can verify the records on the public blockchain. However, with a private blockchain, the records cannot be verified independently. Network integrity depends on the authorized nodes.
Public and private blockchain would work on the same technology, but the public ones would maintain transparency in the transactions performed. In contrast, private ones would avoid others from accessing your information and misuse it.