Private or Public Blockchain – Which Holds the Key to Future of Business
- Privacy vs. Security in Blockchain Implementation
- Blockchain Types
- Private vs. Public Blockchain
- Which Holds the Key to the Future for Business?
Privacy vs. Security in Blockchain Implementation
Blockchain is a unified network architecture, with a distributed database to record transaction information, which is completely secured by digital trust. Digital trust here authorizes and authenticates transactions of the public ledger. In a blockchain infrastructure, there are private key cryptography, a protocol platform, and a network of records. Currently, Blockchain is believed to be a breakthrough technology that will bring about a paradigm shift in the manner in which the flow and nature of crypto transactions will be shaped by individual users (via public blockchain) and businesses (via private blockchain).
Public blockchains are based on distributed ledger technology and are completely accessible to everyone. Allowing any user to download the protocol and authenticate transaction information. In open-source, a wider consensus is a definite requirement, to initiate any updates. Private Blockchains are much faster and to download the protocol explicit access permission is required. There are regulations based on which these blockchains operate. They offer scalability and supportability for organizations and are integrated, centralized, and resilient.
There are two types of Blockchain technology – Private and Public.
In Public Blockchain, the platform is open for users to develop smart contracts, facilitate financial exchange, and gain access to transaction history. All the transactions are encrypted and once verified they cannot be tampered with, on the blockchain. A robust security framework is offered by the Public Blockchain.
Private Blockchain is for the business community, in this, the organizations have gone for the privacy feature and left the security framework to be weak.
Private vs. Public Blockchain
For public Blockchain, scalability is a major drawback, it is unable to manage an increase in the number of transactions. But this drawback cannot minimize the importance of trust and security that is offered by the blockchain. In the coming time, it is expected that the Blockchain will be able to address the issue of scalability. In Public Blockchain, data sharing can be done more securely and it also makes them immune to DDoS (Distributed Denial of Service) attacks.
In private Blockchain, the operational environment is controlled and confined, thus providing cost-benefit to enterprises. In private Blockchain ‘consortium’ is used to grant permission, whereas a consensus mechanism is used in the case of public Blockchain. In a consortium mechanism, a controlled ecosystem is created for consensus via nodes selected to grant exclusive excess.
Which Holds the Key to the Future for Business?
Both blockchains offer various benefits to their users and also have a few drawbacks. For public blockchain, issues of scalability, speed, and concerns of privacy must be addressed in the future. The decentralized and distributed database offered by public blockchain is very secure and too difficult for attackers to control or manipulate. Public blockchain must provide a good alternative, offering a wide spectrum of features, for enterprise users.
Once the public blockchain can address its shortcomings it will be able to appeal to enterprises looking for a balance of security and privacy in the future.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.
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