Crypto Academy Season 4 Beginners' course - Homework Post for Task 5: Bitcoin, Cryptocurrencies, Public chains

QUESTION

(3) What Is Public Chain and What will be the Advantages and Disadvantages of Public Chain?

What is Public Chain?

The blockchain-based platforms can be either decentralized or centralized; which mean the ecosystem can be either influenced by public society or by a fewer authorized central society. A Public chains is a decentralized blockchain which can be governed by its users. And also a public chain is a platform where gives equal authority and accessibility to its users over the ecosystem. Anyone can join and leave a public chain as they prefer without any restriction and without any special requirement.

Everyone in a public chain ecosystem makes a considerable and significant commitment to its development and existence. As well as everyone in a public chain is responsible for ongoing activities within the ecosystem. Such as data and content creating, making transactions and their tracking and validating processes. There is no authorized center to monitor those actions. Every user can maintain the public ledger and block making process for the chain continuation. The public chain supplies a copy of a public ledger for every user which allows them to work with it. In a public chain, every moment that is being made is visible to its users and can be overviewed without any restriction at any time.

As this is a decentralized system, users have altogether acquirement on making decisions about the contents. Whether they are good or bad or wrong or right to the system, it will be a judgment of users themselves. The mechanism of making decisions up to users according to their desires. Users are also free to validate and verify block transactions and input data into the public ledger. Therefore, the dynamic of the ecosystem of a public chain is user-dependent. There is no need for any third-party engagement to control the chain’s activities.

Public chains came in popularity to this world with the decentralized cryptocurrencies concept. It allowed the public to maintain, develop and continue the chain further. Apart from cryptocurrencies, these decentralized systems came to know with health, educational, political and population data collecting fields. There is no restriction of knowledge flow among the public chain users. A specific public chain will provide its every services to its users anytime and anywhere.

Advantages of a Public Chain

1. Decentralization
The most significant thing in a public chain is its decentralization that there is no central authority to govern chains activities. Every user in the public chain has equal rights to run the ecosystem of the chain. Their free and genuine commitment to the chain will help the development of the chain.

2. Transparency
The public chain provides every detail to its users in a penetrative way. It provides an open and public ledger that everyone can act on it. They can make their decisions on what others are doing on the platform according to their willingness.

3. Anonymity
In a blockchain-based system, the users are anonymous. The transactions and other activities of a user are identified, tracked and validated using his/her verified keys.

4. Highly secured
Data or the transactions that create within a blockchain is cannot be hacked. As this is a chain, if someone is going to do it, he has to change all the sequence blocks that are attached to the relevant block. This is impossible to make.

5. Immutability
All the data and transactions that made on a blockchain is cannot be altered and they are irreversible.

Disadvantages of a Public Chain

1.Apart from the cryptocurrencies, the data that is providing to develop the public chain may include false details. Especially when it comes to health or educational public chains, we cannot be sure with 100% accuracy of the providing information and their efficiency. Therefore, the trustworthiness of such kind of data is minimum in some cases.

2.When it is a public chain, the capacity of the chain may increase rapidly. But there is no process to manage this. Because of that, some scaling and validating processes may be difficult. It will require an additional effort, time and cost to conclude these problems.

3.When a blockchain grants its users anonymity, it will create fraud. Someone can hide their identity and appear with a fake identity on the public chain.

CC - @stream4u