Ever since Bitcoin’s market value grew exponentially people started developing more interest in the domain of cryptocurrency and blockchains. A lot has changed since then and a lot is yet to change. This developed interest by the world has helped blockchain to evolve over the years.
With the advent of blockchains, a lot of organizations have opted, using it for the benefit of the organizations. It has immense future possibilities and versatile functionalities which could be gained by any organization making use of it.
It’s a decentralized peer to peer network where each delegate maintains a copy of a ledger of digitally signed transactions. It maintains the copy updated through a protocol referred to as consensus. Immutability of the ledger is guaranteed even if one of the delegates are faulty.
Blockchain now has evolved into two different flavors public blockchain and private blockchain. While both are similar to the basic characteristics of blockchains and are distinct in many ways.
This article will help you analyze as to which kind of blockchain is right for your business.
Imagine public blockchain as a club in your school. Joining the club is easy and anyone can join. The whole work is divided and shared among the club members but since anyone can join it would be hard to maintain a huge number of club individuals. With the club being open to everyone you can expect privacy to be negligible and least of the club’s concern.
Analogously, Public blockchain can be joined by any person. Each delegate must contribute some amount of computational power since there are a lot of members computational power required would be marginally high. The speed of transaction is low due to the huge amount of data piled up. It provides a significant amount of transparency. The network is decentralized to its highest extent.
Bitcoin is a public blockchain cryptocurrency, It has the ability to provide incentives to the participants of the blockchain thereby attracting individuals to be a part of it. Each node must solve a problem for the ledger to remain updated. The problem might be a highly complex mathematical or cryptographical problem which would obviously require a tremendous amount of computational power.
All the transactions in the Bitcoin are out in the open and anyone can have access to it. Another such currency that emulates public blockchain is Ethereum.
Various companies and organizations loved the concept of blockchain but weren’t happy about its transparency and wanted authoritative control over its working. They wanted a system where delegates can have their privacy of transactions. Which was Decentralised to a limited extent. Although some feel that keeping transaction information public has a lot of benefits but institutions were not satisfied with this ideology and need something similar to public blockchains but overcame it’s privacy issues. Thus, Private blockchains were introduced.
The private blockchain is like a private gala you’re invited to. Only individuals with the invitation can enter the gala. The host is responsible for the guest list and manages most of the work of the gala. The guests are limited and trust is built within them. Each guest has enough space and privacy at the gala.
Similarly, To join a private blockchain the user must have an invitation or permission to access the network. Businesses usually set up a permissioned network. The transactions initiated in the private blockchain take less time compared to a public blockchain due to an inbuilt trust existing among the members. The computational power required and data piled up is very less compared to a public blockchain. Therefore, Private blockchain is way more efficient than a public blockchain.
The control authority can be different, It could be the present members deciding the future entrants or a regular authority could give the permission to join. Security is enhanced and the information is not leaked in any way possible. There is a building interest in private blockchain as it solves many problems posed by public blockchains. One such private blockchain is Linux foundation’s Hyperledger Fabric.
Hyperledger fabric is a permissioned network. It was designed to meet key requirements of transaction privacy. Hyperledger finds itself superior to ethereum due to its various functionalities as a private blockchain. The entities participating in the transaction have knowledge about it and other entities cannot access this information. There’s greater scalability in terms of transactional throughput.
Blockchain has brought about tremendous growth and potential in the past few years. Its application and possibilities are various. There are different flavors to choose from and the company can go with ether public blockchain and private blockchain based on what they prioritize. Public and Private blockchains satisfy a certain amount of people with their different characteristics but are still peer to peer networks. A technology for the future that will get developed hand in hand with concepts like IOT, AI, and automation industry
Let us know your thoughts on choosing the appropriate flavor of Blockchain, in the comments below!!