Public and Private Chains Meet on Nerves Blockchain
Blockchain technology has been a major innovation in history. This technology came through an anonymous person or group; but this doesn’t matter as much as the invention does matter. With the advent of this technology, many activities in the corporate world became metamorphosed into better, improved and more secure ones.
The reason blockchain enjoys wide acceptance is because of its usability in many aspects. This technology has the potential to cut off every form of fraudulent activity. Since it is a public distributed ledger, every node (or computer) in the network receives a time-stamped record of transactions on the chain.
In other words, every node on that network is responsible for the administration of that network. This makes the blockchain immutable. Because every node is an administrator in the network, no one can successfully maneuver the transactions on the blockchain to their own favor without the consent of every other members of the chain.
Blockchain Transformation
Also, the entrance of the second generation blockchain ushered in the Ethereum blockchain platform which supported the creation and issuance of tokens. Tokens could now be created using the ERC-20 protocol or the ERC-223 protocol which was later developed. In addition, it was possible for companies to raise funds through ICOs, i.e. Initial Coin Offering. This also led to the creation of smart contracts and decentralized apps (DApps).
These features and more are reasons why blockchain is a “come-to-stay” invention in our world today. However, as much as the blockchain is needed, a number of things have to be improved upon to make the technology what can be used without fear of failure. Some of these issues are slow transactions, poor scalability, high energy consumption, but to mention a few.
A feature that is worth highlighting is the public distribution ledger feature. Truly, it is a good attribute because of the decentralization, security and safety of transactions that it offers. However, not all contracts should be public. For example, an agreement between government and an institution should be purely private. Hence, by default, an open blockchain tech is not the best for such a contract.
Nerves Makes a Difference
Good news is here anyway! The blockchain has proved to be adaptive time and again. So, it is possible to now have private blockchains. Nevertheless, one needs the right platform to enjoy this feature. Nerves blockchain platform features a public-private network which is a dynamic blend of the two. More of this will be explained in subsequent paragraphs.
Nerves blockchain is a friendly multi-network blockchain technology. It uses a principle called IoT (Internet of Things). It surpasses many other blockchains in function, scalability and reliability because of the combining power it has.
Now, let us consider what private and public chains are:
The Private Chain
A private blockchain is one that only accepts people on the basis of invitation. It is a contract that no one can join on their own except contracting parties agree to invite such a person. A private blockchain is also called a permissioned blockchain because it places a restriction on who can participate.
Nodes used on a private chain make use of what is called the variable access mechanism. In this mechanism, an organization could serve licenses to prospective participants on the network. The decision may be made by a consortium; or it may as well be made existing participants on the network.
A private chain uses less computational energy and is more scalable than the public chain. Also, it is more secure because there is no public distribution of the data on the blocks. An example is smart contracts developed for health care to aid patient-doctor relationship and enable the doctor to have access to classified information about the patients.
The Public Chain
A public chain on the other hand is very accessible by all. Anyone can have access to the network without any set of rules imposed. Upon joining the network, a user receives a copy of all the transactions on the blockchain (provided it is a full node). A prominent example of this is Bitcoin and many other cryptocurrencies.
The public chain is advantageous but can be the other way too, because as the number of nodes that join the network increases, it takes a longer period of time to make decisions, then more energy is being used up in the process. Also, since all transactions are sent to every node on the network, then it becomes a little less secure.
The Similarities
The public and private blockchain network both share some things in common. Some of these things are listed below.
- Although there is a disparity in how people join the two networks; yet, every member of a network has a record of transactions that go on in a block.
- They both require a consensus algorithm to validate existing blocks and set out for creating new ones.
- Both the public and private blockchain are safe, secure, immutable and insusceptible to fraudulent activities.
The Meeting Point
Nerves blockchain technology comprises mainly two networks — the stem blockchain network and the auxiliary one. The stem blockchain network is a public one. However, Nerves allows any type of chain to be fixed to it as a branch. This is what makes it possess so many amazing features.
Nerves combines the power of all the blockchains connected to it and leverages on this to improve speed, scalability, output, and so on. Furthermore, Nerves is built to be able to keep blockchains based on the type. For example, Nerves would ensure that a private blockchain attached to the main blockchain retains its hidden nature.
The Nerves blockchain is yet a reason to show that blockchain technology would provide solution to many challenges in everyday life. Organizations can then opt for the Nerves network to make the best use of the blockchain capacity. Irrespective of the nature of chain you might have in mind, a choice exists between private and public chains. What meets your expectation can be any of the two options.
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