Guide to Public Blockchain vs Private Blockchain

The rise of blockchain technology has created a lot of buzz in the technology sector. Blockchain development services are a popular choice for entrepreneurs and startups. Blockchain is now the hottest topic in town. Blockchain technology is a buzzword in many industries. This includes banking, finance, and healthcare. This technology is also very efficient in creating cryptocurrency. This technology gave rise to bitcoin and ethereum. This technology is now very popular around the globe.

Blockchain technology was introduced to the public after the creation of the first digital currency. Many people have been able to benefit from the widespread adoption of blockchain technology. Blockchain development services. Blockchain isn't just used for digital currency development. Blockchain is also used in other large sectors. Supply chain management, data analytics, tourism, agriculture and many other sectors are all benefited by the blockchain. There are two types of blockchain: private and public. Let's look at the main differences between public and private blockchain and its features.

What is Public Blockchain?

A public blockchain is an open source, permissionless network. This type of blockchain is also open to all without restriction. It is available for download on any computer. They can also view the entire history of blockchain. They can store information, send money and receive money. And they can even create smart contracts within the Blockchain. Anyone can join the blockchain, write code, or participate in its development. The public blockchain also has mining, which allows users to earn rewards for maintaining the network.

The public blockchain is completely decentralized and has no central authority. Cyber-attackers cannot alter or modify information once it has been validated in blockchain. It helps protect data and information. It is encrypted completely and stored on many devices that have a copy. The public blockchain serves a purpose that goes beyond cryptocurrency like Bitcoin or ethereum. These cryptos are two examples of a public Blockchain. It is a way for many communities to securely and openly share their data.

Public blockchains have the ability to set their rules from the beginning. It also has the potential for making changes later. The community must convince all users to update the rules or accept a bug fix in order to adjust them. Public blockchain is slow and inefficient.

Public Blockchain Features

  1. Permissions are not required
  2. Anonymous nature
  3. High security
  4. True decentralization
  5. Distributed ledger
  6. Unchangeable
  7. There are no regulations
  8. Complete user empowerment
  9. Transparency in every detail
  10. Open environment

What is private blockchain?

Private blockchains can be contradictory to public blockchains. Private blockchains are not permissionless networks and give full control to their owners. It restricts who can access the blockchain network and how they can participate. Participating entities must have permission to modify, read, and write on the blockchain. To protect data and information. This blockchain allows multiple layers of data access. Private blockchain offers a higher level in performance, security, privacy, and confidentiality.

Private blockchains are private and confidential. This blockchain is only used in certain sectors. This includes the government and finance sectors. This type of blockchain is controlled by one or more entities. This allows third parties and intermediaries to transact. Only the parties to a transaction can see it in a private blockchain. Others will not be able to access it and cannot participate in it. Hyperledger Fabric is a great example of a private Blockchain.

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Corporate sectors can also adopt private blockchains. The details of the transaction must be shared between only certain nodes. A private blockchain can be adopted by a group of banks, for example. Here financial transaction details can only be shared with the parties concerned. Private blockchains have been recognized by media companies Comcast, Disney, NBCUniversal, and many other companies. They began to use this type of blockchain to share advertising data.

Private Blockchain Features

  1. Transactions are faster and more efficient
  2. Better scalability
  3. Privacy at all times
  4. Non-permissionless
  5. Support for compliance

Let's first see the differences between these types of blockchains. Let's first look at the similarities.

There are similarities between a public and private blockchain

Blockchain technology The terminology has changed over the years. This is because the public and private blockchains have some similarities.

  1. Both are peer-to-peer blockchain networks.
  2. Both blockchains share an append-only ledger that digitally signs transactions. Both blockchains have immutable records.
  3. They are distributed completely over a peer-to-peer network of a computer.
  4. Both records can be verified for their validity.
  5. Through a protocol called consensus, both blockchains can stay in sync.
  6. Both public and private blockchains provide assurance on the integrity of the ledger

Let's now see the main difference between a private and public blockchain

Public Blockchain vs Private Blockchain

S.No

Basis of comparison

Public blockchain

Private blockchain

1

Acces

In this type of blockchain, anyone can read, write, and participate in a blockchain. so it is a permissionless blockchain. Also, It is public to everyone.

In this type of blockchain, read, write, and edit can be done only after the owner gives permission. So it is not a permissionlessblockchain.

2

Network actors

Don’t know each other

Know each other

3

Type of the network

A public blockchain is more decentralized

A private blockchain is more centralized

4

Order of magnitude

The order of magnitude in a public blockchain is less compared to a private blockchain. Because it is lighter

Here the order of magnitude is high compared to the public blockchain

5

speed

Slow

Fast

6

Security

It is more secure due to decentralization and active participation. Due to the higher number of nodes in the network. The possibility of attacking the system is very less. Also, it gains control over the consensus network.

This blockchain is more prone to hacks, risks, and data breaches. It is easy for attackers to endanger the entire network. So this type of blockchain is less secure.

7

Transactions per second

In a public blockchain, transactions per second are less.

In a private blockchain, transactions per second are high compared to a public blockchain

8

Consensus algorithm

In a public blockchain, it follows some consensus algorithm. Such as proof of work, proof of stake, proof of burn, proof of space, and much more

In the case of a private blockchain, it follows Proof of Elapsed Time (PoET), Raft, and Istanbul BFT

9

Energy consumption

It consumes more energy than private blockchain. It requires sufficient energy resources to achieve the network consensus.

It consumes less energy and power.

10

Native token

yes

No need

11

Effects

Low infrastructure cost and no need to maintain servers radically. So it reduces the cost of creating the Dapps.

Reduces transaction costs, data redundancies, and replaces legacy systems. simplifying documents handling

12

Attacks

No one knows each other. so the risk of potential collision or attack is high.

No minor collision and know each other. Also, they have some credentials to participate in the network.

13

Example

Bitcoin, ethereum, dash, stellar, and more

Corda, EWF(energy), and hyperledger fabric

Public Blockchain vs Private Blockchain: Which one should you choose?

Public blockchain security has become more secure. Their value will also increase in the future. Private blockchain allows for greater control and limits access to certain individuals. . Both of these blockchain technologies can be used in different business situations. B2C users will find public blockchains more useful. Private blockchains work well in B2B situations, whereas public blockchains offer a better service to B2C players. The organization that uses the blockchain will ultimately decide whether it is best to use public or private blockchain. Businesses should decide which type of blockchain platform they want.