Enterprise companies do not know how to decide with public and private blockchain technologies. Here, we will dig deeper and understand the features and compare public vs private blockchain.
A public blockchain network is a blockchain network where anyone can join whenever they want. Basically, there are no restrictions when it comes to participation. More so, anyone can see the ledger and take part in the consensus process.
For example, Ethereum is one of the public blockchain platform models. Let us check out the best features in this public blockchain vs private blockchain guide.
Basically, digital currencies exchanged in a private blockchain are like Monopoly money, while in a public blockchain if in an exchange can be traded for any other digital or traditional currency.Tweet
Public Blockchain: Best Features
Public blockchain companies always design every single platform in a way that offers full security. Every single day, enterprises and organizations deal with online hacks. It is becoming a big hindrance as time is going by.
Furthermore, it causes billions and billions of dollar losses every year.
But with all the security protocols of a public blockchain, they can easily stop all the hacking issues they face. More so, they can finally ensure true value or better data quality for any project.
The security protocols may vary based on the platform, but I can safely say that public blockchains are robust.
As you already know, the public blockchain is open for all, just like its name. So, no matter where you reside, you can log into these platforms. You would only need a good internet connection and a computer.
This is one of most criticized features of public blockchains that most of the users love.As it is a public domain, this feature is mainly for the safety of one’s possessions. However, people did use it for illegal reasons as well.
People can use any new technology for bad and good purposes. Thus, it should not reflect on public blockchain technology in any way, and as a matter of fact cash is still king since criminals prefers cash for money laundering.1
According to the United Nations, the estimated amount of money laundered globally in one year is 2 to 5% of the global GDP, or $800 billion to $2 trillion, with more than thank 90% of money laundering going undetected today.
Concurrently, the cryptocurrency industry has also been criticized for being a tool for money laundering, despite statistics stating otherwise. It is estimated that only 1.1% of all cryptocurrency transactions are illicit.2Tweet
Why Use This?
In a public blockchain, you will get true decentralization. This is something that is quite absent in private blockchain networks. As everyone has a copy of the ledger, it creates a distributed nature as well.
Well, nothing can compare to a fully transparent platform to anything else. Basically, the public blockchain companies tend to design the platforms so that it is fully transparent to anyone on the ledger.
The public blockchain network is fully immutable. But what does that mean? Well, it means that once a block gets on the chain, there is no way to change it or delete it. So, it makes sure that no one can just alter a certain block can get benefits from others.
Full User Empowerment
Typically, in any network, the user must follow a lot of rules and regulations. In many cases, the rules might not even be fair ones. But not in public blockchain networks. Here, all the users are empowered as there is no central authority to look over their every move.
Private Blockchain: Best Features
Even though public blockchain came first, they tend to lack inefficiency. Why? Well, it is because they introduce everyone to the network.
Private blockchain solutions work to empower the enterprises rather than individual employees. Companies do need great technology to back up their processes. More so, these solutions are mainly for the internal systems of an enterprise.
Why Use This?
Maintaining a private blockchain is rather simple compared to public blockchains. Private blockchain platforms take up only a few resources. But on the other hand, public blockchain takes up a lot to support the platforms’ enormous crowd. Thus, in the long run, it saves a lot of money.
Public Vs Private Blockchain: The Ultimate Comparison
Businesses need to be acquainted with the benefits and drawbacks of public and private blockchains to ascertain which blockchain type will prove the most beneficial for their specific requirements.
The general consensus is that public blockchain and private blockchain are competitors. However, that is not the case. Both platforms serve different business scenarios. Public blockchains tend to better serve B2C players whereas private blockchain platforms are better suited to B2B scenarios. Thus, businesses should adopt a blockchain platform, i.e., public blockchain or private blockchain depending upon the desired goal.
The Proof of Stake consensus mechanism has recently been in the spotlight for quite some time in the context of blockchain scalability issues.
Without going into details about its advantage over Proof of Work, Proof of Stake eliminates the need to spend a huge amount of electricity to validate blocks.
Instead, blockchain participants with the most coins are selected by the algorithm for the right to validate blocks.
The assumption behind Proof of Stake is as follows: those who hold a stake in a network have an incentive to act in its interest.
Other things being equal, the higher the stakes, the greater should be their interest in preserving the system.
Just as in PoS, in the PoA consensus, identity as a form of stake is also scarce. But unlike in PoS, there is only one identity per person.
Identity staking means voluntarily revealing who you are in exchange for the right to validate blocks.
Identity staking can act as a great equalizer, empathised and valued equally by all actors.
Individuals whose identity (and reputation by extension) is at stake for the security of a network have an incentive to preserve the network.
For the concept to work in real, live contexts, certain conditions must be met:
Identity must be true: this means that there must be a standard and robust process to verify that validators are indeed who they claim to be.
Eligibility for identity staking should be hard to achieve so that the right to be a validator is earned, valued and costly to lose.
This is the big PoA identity issue at stake: whoever decides to approve the two conditions above may have an interest in controlling the blockchain through the individuals they have given permission to or pursue economic goals that are increasingly oppressive to them.
AURA is a combination of a permissioned PoA blockchain (for obvious reasons, having to ask permission to participate in the stake) and several applications that use it as a backend for supply chain tracking and anti-counterfeiting of objects.
In Aura since consent is permissioned, the cryptocurrency used therein cannot be valuable or trusted, as it is controlled by a few partiesTweet
OTICHAIN is a permissionless PoS blockchain (so anyone can participate in the consensus to secure the network, without censorship or bias) and 1TrueID provides a number of applications that use OTICHAIN as a backend for supply chain tracking, anti-counterfeiting of objects, certifying the ownership of the object to an individual, giving the certification to a third party (in case of sale/gift), using the cryptocurrency embedded in OTICHAIN to transmit value to objects or individuals using it.
From the information retrieved, becoming an AURA node means setting up a server as the consortium says and paying a significant start-up fee.
About Quadrans, I am happy to revise with a note from a member of the Quadrans Foundation technical team, Piersandro Guerrera, original quote:
[quote] Becoming a node of Quadrans (another PoA blockchain used by TextileChain) means paying 1000 euros a year, plus their cryptos at the price they deem appropriate for the client.[/quote]
Revised one as informed from Piersandro Guerrera, (see in the comments):
As written in the Quadrans Foundation website, Quadrans “uses both Proof of Stake and Proof of Work protocols and combines them into a modified Proof of Authority.”Tweet
Becoming a node of OTICHAIN means investing (not paying) the amount you want to have a significant return and not having to pass any visa or censorship of any kind.
A bit of technique:
Premised on the attached scheme I would add a comparison with the audience:
An important detail with Hedera is that OTICHAIN uses a transaction security system based UTXO and node confirmations, Hedera uses Hashgraph which accepts all blocks on principle creating a multitude of sidechains. Which does not allow to “reject” a block and does not allow to change the rules of the game (Fork) for code improvement because everything applies.
1.https://www.europol.europa.eu/newsroom/news/cash-still-king-criminals-prefer-cash-for-money-laundering 2.The Hidden Truth Behind Money Laundering, Banks And Cryptocurrency (forbes.com)
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