Blockchain is a technology that allows the creation of an immutable register of exchanges on a database. Secure, the latter is distributed to all users. Everyone can therefore read, verify, and modify the information. This technology has many advantages, including reduced transaction costs, better traceability, etc. But what are the differences between private blockchains and public blockchains?
The public blockchain
Accessible to the public, the public blockchain is decentralized. Also called a consortium blockchain, it allows all users to read or send transactions so that they are recorded in the register. Its main advantage therefore lies in its transparency. However, they are required to respect the rules of this type of blockchain. Everyone can participate in the approval process freely. There are a multitude of public blockchains. However, Bitcoin is the best known. Cryptoeconomics ensures the security of blockchains intended for the general public.
The private blockchain
A private blockchain is a centralized system. A network manager controls the latter. He is required to approve the participants. It is up to him to designate a key holder or trusted third party. With this technology, each member must indicate his identity. By choosing a private blockchain, you can secure transactions. Users also benefit from constant confidentiality.
What are the differences between public blockchain and private blockchain?
Each blockchain has its characteristics.
Data validation
With the public blockchain, all users have writing rights. They submit their information to the computing power of the members. Also called “miners”, the latter can be companies or individuals. For the private blockchain, data validation is limited to a small number of users who are called a “consortium”. For example, if several companies choose to develop this technology together, they must define several people who will be able to validate the block. It is also possible to entrust a single actor with the ownership of the private blockchain.
Operability
The public blockchain remains operational. It has generated a new sustainable and secure system. Thus, participants can easily register their data. For the private version, the community that runs it is reduced. In addition, the blockchain and the nodes are weakened. Indeed, they are produced in small quantities. Only good understanding between managers can ensure the longevity of the permissioned blockchain.
Speed
Since the number of participants is limited, private blockchains can process a large number of transactions quickly. Based on the Raft protocol or Proof of Authority, they are updated at all times. If you choose consortium blockchains, data processing is slower.
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