Public vs. Private Blockchains: Understanding the Different Permission Models
Assalamu Alaikum
To generally understand the difference between public and private blockchains depending on the permission model, here is a breakdown-
| Public Blockchain: |
|---|
Permissionless: Anyone with an internet connection can join the network, read data, and participate in activities such as mining (for proof-of-work blockchains) or staking (for proof-of-stake blockchains). Examples include Bitcoin and Ethereum.
Decentralized: No single entity controls the network. Decisions are made through a consensus process ensuring transparency and security.
Slow transaction speed: Due to the large number of participants and complex validation process, public blockchains can handle fewer transactions per second than private ones.
| Private Blockchain: |
|---|
Authorized: Access is restricted to authorized participants, usually controlled by a single organization or consortium of organizations
Centralized or partially decentralized: A central authority manages the network, grants access, and potentially the ability to edit or delete data.
Fast transaction speeds: With a limited number of pre-approved participants and a streamlined validation process, private blockchains can achieve significantly faster transaction speeds.
| Choosing the right model: |
|---|
The choice between a public and private blockchain depends on your specific needs. Public blockchains are ideal for applications that prioritize transparency, security, and immutability (such as cryptocurrency), while private blockchains are better suited to situations where speed, scalability, and controlled access are essential (such as supply chain management or internal business processes).
There is also a third option called a consortium blockchain, which works on a permissioned basis with the participation of multiple organizations. It offers a balance between the control of a private blockchain and the security of a public one.
I hope this explanation clarifies the different permission models of public vs private blockchains! Let me know if you have any other questions. So friends, that's it for today. Let me know in your comments what you think of today's topic. I am ending here wishing everyone good health. All be well and stay healthy.
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I don't have much experience with public and private blockchain, you have explained it very nicely, thank you
Thank you so much for reading my entire post . I hope you will be benefited from it.
You have written a nice post on blockchain, public and private both have their own merit and dismerit and really it all depends on personal choice and preference for me though I prefer private blockchain
You have presented an excellent post on public and private blockchains. Wright has given a nice discussion about these models. Thanks for sharing such a helpful post.