To deploy blockchain technology solutions, blockchain developers can use private or public blockchains.
Blockchain technology refers to a shared, immutable ledger that helps record transactions and track assets in the business network. The assets you deploy on the Blockchain can be tangible, like a car or land, or intangible, such as intellectual property, copyrights, etc.
In essence, users can utilize Blockchain to track and trade assets while reducing risks and cutting costs for everyone involved.
The Importance of Blockchain
Businesses utilise information to exist in the market. The faster and more accurate the data, the better. And Blockchain technology solutions can help reach this goal. It is the tool that allows immediate, shared and completely transparent information that gets stored in an immutable ledger and can be accessed only by the permission network members. It is the perfect technology for web 3.0.
Companies can use blockchain to track payments, orders, production, accounts, etc. All the members have a single view of all details of transactions end-to-end, giving rise to opportunities and efficiencies.
What is Public Blockchain?
Public blockchains are permissionless and allow everyone to participate in the network. On such a platform, all people can join the network, read, write or participate at will. It is a decentralized system, and no single entity has control over the network. The data available on the public blockchain is secure because it does not allow any data modifications once validated on the blockchain.
Some Features of Public Blockchain
- Open Environment: The public blockchain offers everyone the opportunity to participate.
- Full Transparency: Public blockchain lets users see the ledger at will, leaving no scope for corruption or discrepancies.
- High Security: Public blockchains use the 51% rule on mining to provide the best possible security to users.
- Decentralized: The lack of a centralized entity enables public blockchains to be truly decentralized, with the nodes responsible for maintaining the network.
- Anonymous Nature: The public blockchain allows users to provide input anonymously, giving them more safety.
- No Regulations: Public blockchains do not have regulations, giving users more freedom to choose how they can use the platform for their betterment.
- User Empowerment: The public blockchains empower users, as there is no central authority. The rules are set by the users and for the users.
- Immutable: Modifications are not possible on a public blockchain. Once the transaction is validated, it remains the same.
- Distributed: Public blockchains do not have a centralized database like the client-server approach, and every node in the blockchain participates in the transaction validation.
What is Private Blockchain
A private blockchain comes with a network administrator, and the users need the authority’s consent to join the network. In essence, private blockchain requires permissions. One or more entities could have control over the network, which causes resilience toward transactions. Also, only the people who are actively participating in the transaction will have access to it, giving the users more privacy.
Some features of Private Blockchain
- Privacy Galore: A private blockchain’s primary function is to offer users more privacy. It gives users complete control over accessing the transaction information without sharing it with others.
- Centralized System: Private blockchains are not decentralized like the public blockchain.
- Improve efficiency and quicker transactions: All the nodes in the blockchain are distributed locally, and there are comparatively fewer nodes in the ledger, which helps improve the performance. The users can make transactions quickly.
- Highly Scalable: Private blockchain allows companies to add nodes and services as demands arise. This function offers a great advantage to the enterprise.
Blockchain Technology Solutions: Public Blockchain VS Private Blockchain – Which is Better?
When comparing the two blockchains, the trend has shown an inclination towards using public blockchain over private blockchain among users. As companies want to be where their users are, public blockchain seems to be the right choice.
Firstly, while private blockchain offers more security, it still alienates many users as it is a permissioned blockchain. Public blockchain accepts all users.
Moreover, public blockchains are highly auditable. Every user has access to the ledger. They can audit the ledger for any discrepancies at will. On the other hand, private blockchains offer no such information to the users.
Furthermore, the blockchain administrators in a private blockchain can reject or delete transactions. Whereas public blockchain data is immutable, giving users another reason to trust the system.
Overall, when it comes to enterprises using blockchain, specific scenarios need public blockchain, while others applications can benefit from a private blockchain.
The use of public blockchain aligns with the vision of web 3.0 currently instilled in the tech-enthusiasts. However, as blockchain Services regulations will change in 2022 and the coming years, the businesses and developers must consider the factors before making any decisions.
Blockchain Technology Solutions: The Importance of Choosing Right
Both public and private blockchains have merits on their side. However, the right choice will depend on your application. A public blockchain is the better option if you are creating something for the end users or the general public. But if you want to utilize blockchain technology solutions for internal purposes, a private blockchain might serve your purpose better.
You can get in touch with the experts at MoogleLabs to discuss your needs, and they will provide the guidance and solutions you need.