Happy Friday, Everyone!
This time I am going to talk about Public blockchain and Private blockchain.
We can easily find somethings share same nature but have different types.
Typically computers could be divided into several different items like PC, Smartphone, Tablet, Laptop and etc.
Blockchain could also be divided into “Public Blockchain” and “Private Blockchain”, they share same nature as blockchain, but they are used for different cases.
What is Public Blockchain?
Public blockchain is also called open and permission-less blockchain. As you can feel from the name, every information in the blocks is opened and shared with participants of the blockchain network.
In other words, everybody can generate transactions and verify them, and could be a node who create a block.
Bitcoin and Ethereum could be typical examples of the public blockchain.
What is Private Blockchain?
Private blockchain is also called closed and restricted blockchain.
Unlike public blockchain, private blockchain requires permission from the administrator to generate and verify transactions, and to participate as a node in the private blockchain network.
Then Where each blockchains are applied in?
As I already mentioned above, public and private blockchain are same nature but get separated for different applications.
The most typical character of public blockchain is decentralization.
Decentralization could be an advantage but also a disadvantage.
When decentralization is an advantage, the benefit of it is transparency and data share in a democratic way.
As a disadvantage, there is a speed problem.
That is because all participants involve the network consensus process, so it takes relatively long time to verify one new data.
On the other hand, Private blockchain shares the technical nature with public blockchain, but there is a difference in the centralized system where the administrator permits the users' rights.
As there are selected nodes who participate in the network consensus process, it takes much less time and cost.
Also, private blockchain is more suitable for financial institutions and enterprises, because they can not share their data or private customers’ financial data to the public.
Conclusion
Public blockchain and Private blockchain are not alternatives.
We can wisely use public and private blockchain depends on the purpose of usages.
Thank you for visiting our blog today!
Next time, I will bring a more interesting topic!
GBT Protocol is one of the public blockchains. If you are interested in our project, please check the link below.
Homepage : https://gbtprotocol.com/
#GBT_Protocol #GBT #planetwallet #publicblockchain #privateblockchain #blockchain #blockchainapplication
