Private or public blockchain?

When hearing the term blockchain, the default assumption is often a public blockchain. The cryptocurrencies that are currently much in the news all use a public blockchain. Therefore, this seems to be the obvious choice when implementing a blockchain. However, in addition to a public blockchain, there is also the possibility of using a private blockchain. In short: do you use a private or public blockchain? The differences and similarities are described below.

Similarities

Before we start looking at the differences there are a number of similarities:
– Both are decentralized peer-to-peer networks in which each participant has a replica of the shared general ledger including digitally drawn transactions;
– Both hold the replicas in sync through a consensus protocol;
– Both give a certain degree of certainty about the immutability of the general ledger.

Differences

But what are the differences between a private and a public blockchain? The main differences are who can participate in the network, who can implement the consensus protocol and who can keep the general ledger. A public chain is completely open and anyone can become a member of the network. Some networks have an incentive mechanism to encourage participants to participate in the network. Bitcoin is one of the largest public networks today.

A disadvantage of a public chain is that a substantial amount of computer power is needed to be able to keep the distributed general ledger on a large scale (several solutions are now being devised to reduce this burden). Sometimes the openness of the public chain, which means that there is not the privacy of transactions at every level, is also undesirable. Both cases are important considerations for companies when applying a blockchain.

Implementation possibilities

When using a private blockchain within an organization, there are different implementation possibilities. The procedure for the admission of nodes within a private blockchain differs from that for a public solution. The consensus model also works in a different way. Before a private solution can be implemented within an organization, it is, therefore, important to have these choices clear and to define the route to be determined. In a next blog, I will discuss the choices and related considerations in more detail.

Contact us for more information about the private of public blockchain.

42 Responses

  1. Apoiar ferramentas de apostas e estar equipado com uma plataforma diversificada de transações financeiras, a 20Bet oferece suporte tangível aos jogadores. Este é um lugar onde eles podem apostar com dinheiro real, respaldados por concorrentes de diversas disciplinas esportivas. 20bet

  2. ) سأعيد زيارتها مرة أخرى لأنني قمت بوضع علامة كتاب عليها. المال والحرية هي أفضل طريقة للتغيير، أتمنى أن تكون غنيًا و

  3. at web, except I know I am getting familiarity all the time by reading thes pleasant posts.|Fantastic post. I will also be handling some of these problems.|Hello, I think this is a great blog. I happened onto it;) I have bookmarked it and will check it out again. The best way to change is via wealth and independence. May you prosper and never stop mentoring others.|I was overjoyed to find this website. I must express my gratitude for your time because this was an amazing read! I thoroughly enjoyed reading it, and I’ve bookmarked your blog so I can check out fresh content in the future.|Hi there! If I shared your blog with my Facebook group, would that be okay? I believe there are a lot of people who would truly value your article.|منشور رائع. سأتعامل مع بعض هذه|

  4. |Tato stránka má rozhodně všechny informace, které jsem o tomto tématu chtěl a nevěděl jsem, koho se zeptat.|Dobrý den! Tohle je můj 1. komentář tady, takže jsem chtěl jen dát rychlý

Leave a Reply

Your email address will not be published. Required fields are marked *