Before moving forward as to what private and public Blockchains are, it is mandatory to realise what exactly a Blockchain means.
So, what is a Blockchain?
A Blockchain is an ever-growing list consisting of blocks which are nothing but the records which are secured as well as linked through Cryptography.
Normally, many people debate over the issue if the Bitcoin arrived first or the Blockchain. The answer is a tricky one and yet to found out clearly, much like the debate over Chicken and the egg. But either ways, both Blockchain as well as Bitcoin had received a lot of fame and money till date.
Bitcoin received a huge gain of about $7000 whereas Blockchain gained more than $2 billion investment. Also, it should be noted that there are various types of Blockchains as well.
For now, let’s concentrate the 2 most important forms of Blockchain, which are Public and Private Blockchain.
What exactly is a Public Blockchain?
Now that you know what a blockchain is, it would be easier to gain insight on the other forms of it.
Public clearly means that the entire public could see as well as use this form of blockchain.
- It is basically an open source to the public where no-one in particular would be in charge. This also means that anyone could be a part of consensus and there is absolutely no access or a management of rights done in a public Blockchain.
- Basically, anyone could participate in this form of a Blockchain which leads to the fact that due to this access, at any given point a person could join / lead / read / write / audit this ecosystem.
- Also, this blockchain would nevertheless still give out less trust (trustless) i.e. a person wouldn’t necessarily need a setup from a trusted source in order to overlook any sort of operations using the public blockchains.
This technically suggests that this form of blockchain is resistant to any kind of censorship compared to a private blockchain.
- It is a self-governed as well as a decentralised autonomy.
- The decision making system is indeed ultimately hard or in fact nearly not possible to tamper with it at all.
- These blockchains tend to consume a huge amount of time, energy as well as money just like the usual Bitcoins or like the Litecoins due to the process of mining.
This in turn ensures the resistant to tamper.
- The Bitcoin and the Litecoin networks of blockchain could have the following properties, for it to become a true public blockchain –
- The mining could be started by running the BTC/LTC full node.
- Transactions could be made by anyone on the BTC/LTC chain.
- The review/ audit can also be done by anyone through Blockchain Explorer.
More Insight –
What exactly is a Private Blockchain?
Obviously, it is evident that the Private Blockchain would be the exact opposite of the Public Blockchain.
Here are its perks –
- Most of the functions which are open to everyone on a usual Public Blockchain are obviously not open in a Private Blockchain.
- A person would surely require permission in order to read / edit / write / edit the particular Blockchain.
- Here, the commands on the blockchain could be over-ridden as well as deleted since the owner of such a blockchain is an enterprise consisting of just a single entity.
- It’s known as a distributed ledger or a distributed database consisting of cryptography which secure the platform.
- Unlike public blockchains, this may or may not be decentralised.
- One of the major advantages of this form of blockchain is the fact that private blockchains are faster as well as cheaper since there’s no huge amounts of time or energy or money dedicated in order to gain the particular consensus.
- The main drawback is the less security compared to public blockchains.
- An example would be Bankchain.
What are the differences between Public and Private Blockchain?
Here are the major differences –
1) Mining cannot be started since not all could run the full node.
2) Transactions cannot be made by all.
3) Even with a Blockchain Explorer, not all could review or edit the particular blockchains.
What are the similarities between
Public and Private Blockchain?
- P2P is common among the both.
- Decentralisation is also common among the both.
- A replica of ledger is maintained by both at each node which would further get updated with consensus.
- Both are immutable i.e. they cannot be changed/deleted, but at different levels.
These similarities could cause a
lot of problem while selecting the blockchain.
Thus, one must concentrate on the differences rather than the similarities to avoid any sort of confusion.
In fact, both, public as well as private blockchains have their own advantages and disadvantages but it is up to you as to which of the above two blockchains would help you and your company.