WHAT YOU PROBABLY DIDN’T KNOW ABOUT BLOCKCHAIN TECHNOLOGY — Howrea
This article is an excellent guide to understanding blockchain and the underlying technology on
which it functions and the contrast between private and public blockchains.
The blockchain is a revolutionary innovation built to tackle vast world problems, this technology
which democratizes database systems makes it immutable & tamper proof, the technology has evolved greatly from what it was in 2008
when the first blockchain technology (Bitcoin) was launched.
The blockchain is powered by a distributed ledger technology (DLTs)
It is a distributed, decentralized ledger consisting of a continually expanding list of information
stored as blocks. Using encryption, these blocks in a blockchain are linked to one another,
preserving the confidentiality of the transactions. A blockchain is a sequence of time-stamped,
immutable data records that are not administered by a central authority but by a network of
computers. Each and every piece of information transmitted on this network is available to all
participants, who are all accountable for their activities. A blockchain describes a democratic
system to perfection, as the network solely relies on the participation of the members (or
holders) of the network.
What Is a Public Blockchain?
A public blockchain is a distributed ledger system with unlimited access by the public usually
through the internet. There is no need for authorization to access a public blockchain. Anyone
may become a member of the network and read, write, or otherwise take part in the
blockchain. A public blockchain is decentralized, meaning there is no one entity that controls
the network. This means that anybody may use it. Once data on a public blockchain have been
authenticated, it is not feasible for the data to be modified or altered in any way. This makes
the data on such a blockchain extremely safe. Examples of public blockchains include the well-
known cryptocurrencies Bitcoin and Ethereum, Howrea and binance smart chain.
What Is a Private Blockchain?
A blockchain that only certain users may access is called a private blockchain. Access controls
are the foundation upon which private blockchains are built. These limits, limit the number of
users who may take part in the network. Because the network is controlled by one or more
businesses, users are forced to rely on third parties in order to complete financial transactions.
In a private blockchain, only the entities that are a part of a particular transaction will be aware
of that transaction, while any other entities that are not a part of the transaction will not be
able to access the blockchain. One excellent illustration of a private blockchain is the
Hyperledger Fabric project developed by the Linux Foundation. Private blockchains are used in
organizations and companies to share and store data and information.
Common features between Public And Private Blockchains
Both serve as append-only ledgers, in which records may be added but not edited or
removed. Consequently, these are known as immutable records.
In each of these blockchains, each network node has a complete copy of the ledger.
Both are decentralized and dispersed through a computer peer-to-peer network.
In both cases, the authenticity of a record is checked, giving a high level of immutability,
until the majority of participants achieve consensus that it is a genuine record. This
helps prevent records from being altered.
Both blockchains rely on many users to authenticate changes to the distributed ledger,
therefore contributing to the production of a new master copy that is always accessible
Distinctions between public and private blockchains
A public blockchain has a smaller order of magnitude than a private blockchain since it is
lighter and offers transaction throughput.
Level of access allowed to participants- In a public blockchain, anybody may check and
add data. In private blockchains, participation and network control are restricted to
approved parties. Instances include Bitcoin and Ethereum.
Private blockchains are more centralized than public blockchains.
Proof of Elapsed Time (PoET), Raft, and Istanbul BFT are consensus algorithms that can
only be utilized with private blockchains.
Public blockchains have fewer transactions per second compared to private blockchains.
As the number of authorized users is less in a private blockchain, hundreds or even
thousands of transactions can be processed each second.
In terms of scalability, a public blockchain cannot compete with a private blockchain
since it is sluggish and can only execute transactions at a slow rate. As just a few nodes
are required to handle data in a private blockchain, transactions may be supported and
processed at a considerably faster rate.
Public blockchains are trustless, while participants in a private blockchain must not trust
one another. In a private blockchain, the legitimacy of records cannot be independently
confirmed because the network’s integrity is based on the veracity of its authorized
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