Since the inception, Blockchain is creating a buzz in the tech industry. We know that small, medium or large business units can take benefits of Blockchain technology as it is a series of tamper proof data recording (ledgers), which is decentralized and no single authority can control it. But, when it comes to adopting the right solution for your organization or project, we often get confused between what to choose and how to implement it. We, as hyperledger blockchain development experts are decoding the difference between Private and Public Blockchain in this blog.
What is Public Blockchain?
As the name suggests, a Public Blockchain is open to the public. Being a permission-less network, Anyone can read, write and join the network of public Blockchain.
It carries an incentivizing mechanism to make more people participate in it. The concept of Bitcoin and Etherium also roam around its distributed ledger. Where a cryptocurrencies also proved that the value of currency can be controlled globally without involving any remittance companies.
In Private Blockchain, every node (a connected user or computer) has the same power as another node in that ecosystem.
What is Private Blockchain?
Unlike public Blockchain networks, Private Blockchain networks, also known as permissioned networks, require permissions to participate in the network. Hyperledger fabric Blockchain is one of the examples of Private Blockchain development.
Private blockchain can have one or more entities to control the network and third party interactions with the centralized database system. For particular usages, where limited node access should be provided and add another layer of privacy for databases, Private blockchains typically come into the picture.
Which Blockchain is best for your business? Private vs Public Blockchain
Selecting the right technology is a crucial part of any organization. Depending on your project requirements, security & privacy needs, scalability and speed requirements, you can deploy your private or public blockchain in the system. So, which one is best for you?
Public Blockchain is publicly transparent and completely tamper proof. Now this would stop businesses to keep their data confidential and private, as anyone can make their way into the system without any permission. Here, due to increased nodes, the system would make more transactions and would make the entire process slow and less scalable.
Comparing that with the Private blockchain, Private Blockchain would give you much faster deployments, transactions and scalability. Private Blockchain carries enterprise level permissions, so it becomes secured compared to Public Blockchain for making your personal data secured. While being a centralized system, few people can take control over the Private Blockchain network and that makes it less secured as an overall solution if you have such people in the organization.
Still finding it confusing to choose between a private or public blockchain for your next big project? Contact blockchain experts to get the best solution.