Posted by Priyansha Sinha | Last Updated: 17-Dec-18
Blockchain Technology, cryptocurrency, and decentralized ledgers are not buzzwords anymore. These terms have already made a big hype in the digital realm and businesses are leveraging seamless benefits of the neoteric technology. However, blockchain implementation as the mainstream technology requires proper knowledge to choose the right network- Public or Private blockchain.
No matter what industry you work in or what products you want to develop, the technology still remains miles away from a full understanding of its potential and adoption. In simple words, the blockchain technology was developed in a quest to build a secure digital world, which is not dominated by any type of central players. But at the moment, a lot is being sold as “Blockchain” which is not close to Blockchain at all.
Not to mention, blockchain can be of great value for various industries and organizations. In this post, I will be discussing public vs private blockchain and will let you know how either of them can immensely elevate your business operations in diverse sectors.
What Are The Differences Between Public and Private Blockchain?
Many companies are already beginning to experiment with blockchain by executing public or private networks. In order to fully understand the difference between the two chains, it is very crucial to know how each one of them can benefit your business and in what ways.
The name ‘Public’ itself signifies that the network is open and permissionless. Well yes, this network allows anyone to join and view the information stored there. The networks are basically transparent and can be audited by any of the members. Moreover, any new block that is supposed to join takes time and should reach an agreement, that is, each member inside the network needs to validate the transactions and are represented as “nodes”.
Nevertheless, these are quite expensive and takes comparatively more time to process the transactions since every single node on the chain must authorize & agree to the new transactions. Ethereum, Bitcoin, Litecoin, and Monero are some of the most popular public Blockchain networks.
Public Blockchain can be really helpful for your business if you approve to the following checklist:
- The number of transaction participants can be huge.
- The members should be able to bear the transactional prices (such as Gas cost on Ethereum blockchain).
- The members should be fine with the transparency of every transaction.
And how is Private Blockchain different?
Private Blockchain is a network of nodes as well, just as I mentioned earlier, however, this is accessed only by a certain group of people who have the permission to it. Any random person does not have the chance to get inside/join this private ledger all of a sudden. In order to be a participant, you need to have an invitation or permission issued by the blockchain owner of that group or any of the existing participant.
When compared to the public blockchain network, these private blockchains can restrict the viewing of any data stored. Moreover, private blockchain networks are faster, smaller, and more efficient. Some of the famous examples are Ripple, Quorum.
If you are looking for Private Blockchain, here is the checklist before you proceed:
- All the transactions must be confidential.
- The transactions speed is very crucial.
Therefore, I believe that making differences might be unjustifiable between these networks. They can, however, be applied depending on the business goals and vision. If you are still not sure which one will be best suited for your business, let us know. We offer customized Blockchain Development Services that will streamline your business and will help you grow & succeed.