Worldwide spending on blockchain solutions aims to reach $11.7 billion by 2022. Also, more than 50% of worldwide organizations see blockchain technology as a strategic priority.
Organizations seeking to leverage blockchain technology include government, finance, and supply chain management. This results in creating more efficient services and innovate on existing technology.
Public vs. private blockchain technology is now in the spotlight. It is now more important than ever to know the difference between them.
Keep reading to find out more.
Public vs. Private Blockchain: How Are They Different?
Distributed Ledger Technology (DLT) is the main force behind blockchain technology. It works for both public vs. private blockchain applications. What sets them apart is how users access the blockchain. This access controls the validating of blocks within a specific blockchain network.
Let’s find out more about how that security feature differs.
What Is a Public Blockchain?
You might be familiar with public blockchain networks such as Bitcoin, Ethereum, and Litecoin. Anyone with an internet connection and an internet device can have access to them. They can navigate products, services, and apps within the public blockchain ecosystem.
Everyone using a public blockchain is keeping the same record of transactions. Every user can inspect the data recorded. They can trace all transactions and related information.
There is no control in place to stop someone from accessing the blockchain ledger. This creates an anonymous profile for individuals on the blockchain. This results in everyone participating in the consensus of records.
This happens by operating a node, mining, or staking in the platform’s cryptocurrency.
What Is a Private Blockchain?
The private blockchain is a little more mysterious to the general public. One well-known example is the Hyperledger Fabric. These private blockchain technologies work in corporate and enterprise applications.
The public blockchain lacks controls for writing and reading. The private blockchain sets controls in place. This means that only authorized users can enter the system. They are the only ones who can select the number of validators participating in the consensus of the blockchain data.
This allows enterprise organizations greater security when dealing with sensitive records and data. It also allows them higher centralization in choosing who has access to data. This, in turn, results in faster transaction speeds across the blockchain network.
Faster transaction speeds then result in greater technology scalability. Again, this happens across the entire enterprise footprint without changing security protocols.
The Role of Public and Private Blockchains
While public blockchain networks help fulfill the needs of the general public, private blockchain networks are being developed for corporate and enterprise use.
Public vs. private blockchain technology will continue to develop in their respective sectors. The goal of these technologies is to create more secure, decentralized, and scalable solutions to technology problems.
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