Blockchain differences between private and public
The way we exchange and store data has been changed by blockchain technology. It has emerged as a crucial tool for secure and efficient data management solutions for businesses.
The flexibility of blockchain technology to build different networks that meet the special requirements of different businesses is one of its most essential and effective features. Two of the most widespread types of blockchain networks are private and public blockchains.
While their methods of operation are similar, they differ in several significant ways. We will talk about the distinction between private and public blockchains in this blog.
Public blockchain
Anyone is welcome to join networks known as public blockchains. Since they are transparent and decentralized, no single entity affects the network. Without intermediaries, participants in public blockchain networks can exchange information and value. The Bitcoin network is the best-known example of a public blockchain. Ethereum, Ripple and Litecoin are other digital currencies with public blockchains.
Safety: Public blockchains are exceptionally secure. They use sophisticated algorithms to protect the network and guarantee that transactions are legitimate. The network’s users can confirm the transactions, making it more difficult for malicious parties to control the system.
Access: A public blockchain network is accessible to everyone. No authorization is required for participants to join the network.
Order of magnitude: A public blockchain is lightweight and offers transaction speed, so its size is smaller than a private blockchain.
Speed: Public blockchains can be slow due to the agreement method used to verify transactions. Before a transaction can be added to the blockchain, all parties must accept it.
Applications: Decentralized and open applications are ideal for public blockchain networks. They are used for decentralized apps such as smart contracts and cryptocurrency transfers.
Benefits
- Public blockchains are good for applications that need security and transparency since they are transparent and decentralized.
- A public blockchain network is open to participation by anyone, making it accessible to everyone.
- Because of the consensus method – they use to validate transactions, which makes them extremely safe.
Cons
- Because of the consensus method they use, public blockchains can be slow.
- Public blockchains can have security flaws due to their transparency.
- Apps that need confidentiality or privacy may not be suitable for public blockchains.
Private blockchain
Closed networks, known as private blockchains, are often used in businesses. They are centralized and under the management of a single or a collection of units. Private blockchain networks allow only participants who have been granted access. Examples of private blockchain include Quorum, R3 Corda, and Hyperledger Fabric.
Safety: Private blockchains are secure as only authorized users can access them. Comparing them to open blockchains indicates that they are less prone to security breaches.
Access: A participant must be authorized to join a private blockchain network. Because of this, private blockchains are more exclusive than public ones.
Order of magnitude: Compared to the open blockchain, the order of magnitude is higher.
Speed: Because private blockchains do not require consensus among many participants, they can be faster than public blockchains.
Applications: A private blockchain network is the best option for apps that require secrecy and security. They are used in finance, healthcare and supply chain management.
Benefits
- Only authorized people have access to private blockchains, which are more secure than public ones.
- Since private blockchains do not require consensus among many participants, they can be faster than public blockchains.
- Applications that need anonymity and privacy should use private blockchains.
Cons
- Since private blockchains are centralized, they lack the same degree of transparency as public blockchains.
- Private blockchains are less accessible than public blockchains, and require authorization to join the network.
- Single point attacks may be possible on private blockchains.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. A keen observer of detail, he shares his passion for writing alongside being a developer. His backend knowledge of blockchain helps him bring a unique perspective to his writing
