Blockchain technology can serve as a decentralized permanent database for all the data.
As the name suggests, it is a chain of “blocks” containing information and as it gets longer, older information becomes more reliable since each block has a cryptographic signature to the other one.
While more companies are becoming aware of the applications of blockchain in the enterprise world, there is less familiarity with differences between public and private blockchain.
Let’s understand these two blockchain variants in more detail.
1. Public blockchain :-
· Anyone can download the protocol and read, write in the network.
· There is no access or rights management done for a public blockchain and anyone can be a part of the consensus mechanism.
· The well-known public blockchain are usually the ones that support some cryptocurrency such as bitcoin, Ethereum, z-cash and more.
2. Private blockchain :-
· A private blockchain is operated primarily by enterprises.
· A private blockchain is faster, more efficient and more cost-effective than public blockchains, which require a lot of time and power to validate transactions.
· A private blockchain operates at a lower cost and faster speed as compared to public blockchain.
Similarities between Public and Private Blockchain
1. Both maintain the replicas in sync through a protocol referred to as consensus.
2. Both are decentralized peer-to-peer networks, where each participant maintains a replica of a shared append-only ledger of digitally signed transactions.
3. Both provide certain surety on the immutability of the ledger, even if some participants are faulty.