Blockchain the new age technological development has made life simpler and more systemised for most of the people and industries out there. Blockchain is a ledger constructed in a digital format distributed across the network of computer systems, creating a block.
Each number of blocks is depicting a transaction and as and when there is a new transaction is added to the ledger. These transactions are recorded with an unalterable cryptographic structure named, Hash. Private and Public blockchain are further types of blockchain technology available. Let us understand these one by one.
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What is Public Blockchain?
A public blockchain is an open network that does not require any permissions. Anyone is allowed to join the server, read, write or participate within the blockchain network. It is a decentralized form of network and no single entity controls the network. Security of the data stored on public blockchain networks is maintained as the data is unalterable once it has been recorded in the ledger.
A public blockchain has a substantial amount of computational power which is necessary to maintain a distributed ledger at a large scale. In order to achieve a consensus, each node in the network must solve a resource- intensive, complex problem in order to maintain the sync.
Privacy of transactions under public blockchain networks is almost none. This acts as a major limitation for such a network. Public ledger enables you to see any network at any time though there is no scope for discrepancies as the data once recorded cannot be tampered with later.
Advantages of Public Blockchain
In the network and thus it is difficult for the hackers to crack all the nodes and steal a transaction or a deal.
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What is Private Blockchain?
It is a network managed by administrators and consent is required in order to join the network. There are one or more entities handling the controls of the network which leads to third party reassurance of the data stored.
In this type of blockchain only the entities performing or participating in the transactions have knowledge about the transactions further leading to privacy of the data entered.
The users here work on the basis of permissions and controls managed and granted by third parties. A notable example of private blockchain is the Hyperledger fabric.
The access mechanism could vary: the existing participants can decide the future participants, a regulatory authority could issue a license for participation or an association could make future decisions.
Advantages of Private Blockchain
In a private blockchain issues like constant alarm or confidence issues are not present. The result validity feature available in public blockchain is not available here as the integrity of data completely depends on the credibility of authorized participants and therefore, responsibility can be easily identified.
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Public Vs Private Blockchain
Public and private blockchain network can be differentiated on the basis of :-
Differences between public and private blockchain
In a private blockchain, the network is controlled by a single organization. This signifies that the public is not invited to participate. To identify which participant/user is joining the network, private blockchains employ an authorisation process. As a result, just a few people have access to the network.
In a public blockchain system, on the other hand, anybody may join; there are no limits on who can participate. Anyone may view the ledger, read it, write on it, and participate in the consensus process.
In a private blockchain, it is established ahead of time who is qualified to join the consensus and who is not. Participants in a public blockchain, on the other hand, are free to engage and take use of the system's benefits; there are no limits on entering the consensus process.
Only authorized individuals have access to the transaction process and can participate in it. As a result, the speed remains constant. A public blockchain, on the other hand, allows anybody to see and request a transaction/record.
Because there are so many customers requesting many transactions, the platform takes a long time to process each one, slowing down the network's performance.
A private blockchain platform has very low expenses. The price does not change dramatically depending on the amount of requests made; it stays consistent, accurate, and inexpensive.
When compared to private blockchain platforms, public blockchain platforms have a greater transaction cost. In fact, the platform has a large number of nodes, which slows down performance. As a result, responding to the requests takes a long time. As a result, costs spike.
Only a single organization may read and write a particular ledger in a private blockchain. Therefore, only a small number of users/participants have access to the ledger. They can even erase a block depending on the ledger's legality.
As the name implies, this blockchain is open to the public, which means that anybody may view and write on the ledger. However, once completed, this type of ledger cannot be changed or edited.
A private blockchain is nearly always efficient since just a few nodes have authorization and access to the ledger.
Because there are many users accessing the ledger in real-time, public blockchain platforms have scalability concerns. As a result, public blockchain platforms are less efficient than private blockchain platforms.
As previously established, blocks can be erased from the ledger under certain circumstances. As a result, Private Blockchain is unchangeable (partially).
We already know that once a block is added to the chain, it cannot be changed or removed. A public blockchain network is therefore completely immutable.
(Take a look at what are the Types of Blocks in a Blockchain Network)
These forms of blockchain networks have significant distinctions. However, in practice, one may access both of these networks at their leisure. Permissioned blockchains are a third type of blockchain. This is a middle ground that allows for the use of both public and private blockchains while also allowing for customisation.
This sort of blockchain allows anybody to join the permissioned network, but only after their identity has been verified and they have been granted certain permissions to do only specific tasks on the network. If the right features are adopted, both private and public blockchains may be used in a corporate setting.
The final choice, however, is totally up to the individual. Blockchain technology is described as being on the cusp of digital disruption because of its enormous potential. It is considered that if we address the difficulties in a timely way and at an early stage, technology can help to develop the economy