Blockchain, decentralized, cryptocurrencies are not any buzzwords anymore. These terms have been already making a hype in the internet and in the business world. But the time has come to think about how it’s beneficial and how its applications can be used.
It’s not enough to know its benefits but to implement blockchain as the mainstream technology for your business, you need to have a proper knowledge to choose the right type of network.
No matter what you want to develop or what industry you work in, you’ve probably heard way more than you ever wanted to know about blockchain. However, despite being on everyone’s mind this technology still remains a way away from its adoption and full understanding of its potential.
Blockchain can be of immense value various business organizations and industries. Getting deeper into this tech lets today learn about the different types of Blockchain network. Today, we’ll be discussing Private and the Public Blockchain and how these will elevate business operations for various companies in different sectors.
What is Public and Private Blockchain Networks
From the name “Public” we can tell that this network is open and permissionless. Yeah its true, this networks enables anyone to join this network and can view the information stored there. These are transparent and as any of the member can audit them. But any new block getting joined takes time and should achieve agreement, ie each transaction needs to be validated by the network members called “nodes”.
Not only this these are expensive and takes more time to process the transactions as every single node on the chain must authorize the new transactions. Bitcoin, ethereum, Litecoin, and monero are some of the famous public blockchain networks
These are some checklist which can be considered to really apply public blockchain to their business
- There is a large number of transaction participants
- Participants should be able to pay the transactional cost(e.g., Gas Price on Ethereum blockchain)
- Participants should be fine with the transparency of all transactions.
Now let’s see what is a Private Blockchain?
Private blockchain is also the network of nodes, but this is accessed by the certain group of people who have permission to it. No random person has a chance to join this private ledger all of a sudden. To be a participant you need an permission or an invitation issued by the owner of the blockchain or any of the existing participant.
When compared with public blockchain, these private networks can restrict viewing of the information stored. And the Private blockchain is smaller, faster and are more efficient. Some of the examples are Monax, ripple, Quorum.
These are some checklist which makes sense to use them when-
- The speed of the transaction is crucial
- Transactions must be confidential
So making a differentiation may be pointless between these networks. Depending upon the business goal and vision these can be applicable.
Image credit: 101blockchains