Steemit Crypto Academy Season 4 Beginners' course - Task 5: Bitcoin, Cryptocurrencies, Public chains.

Hi steemians and my fellow blockchain users, I'm grateful for this great chance to learn more about bitcoin, cryptocurrencies, public chains. This is task 5 of the home beginner's fixed courses, I will be writing the assignment task given by professor @stream4u

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Question

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

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What Is Public Chain?

A chain of something entails series of related data or instrument with the sole purpose of securing it for a greater purpose. That brings us to the concept of Public Chain - which is a blockchain that is easily accessible to general individuals. Users in this chain can participate actively without interference from a controlling person or body.

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One of the many features of public chain is that its decentralized in nature. Active users can be certain that their transactions aren't altered and once such transaction is made it can't be reversed. It gains popularity because well known cryptocurrencies like Bitcoin, Ethereum, Litecoin, Tron etc use it to carry out their various network operations.

This chain is considered public because it uses Proof of Work or Proof of Stake consensus algorithms to confirm transactions. Satoshi Nakamoto in 2009 proposed this model and it has since gained wider recognition especially by large corporate enterprises.

Public and Private Chain Compared

Public Chain	Private Chain
Active Decentralization	It can be Centralized
Uses Cryptocurrency	Does not require cryptocurrency
High level of energy consumption	Low level of energy consumption
Participants could be any individual	Users are usually invited
Low Output	High Output
High security required	Low security required

Advantages of Public Chain

The advantages of public chain are listed and explained below;

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• Naturally anonymous.
• Everyone is welcome.
• High protection.
• Decentralized to the core.
• There are no rules to follow.

Naturally anonymous

It is a safe and secure online platform where you could conduct business effectively and efficiently while also not having to divulge your true name or identify in order to join. No one else can trace your network activity if your information is safeguarded.

Everyone is welcome

Anybody could access the system, irrespective of their region or gadget type, since all that is required is a steady and dependable Internet service. It is open to anyone without constraints.

High Protection

Public chains work hard to keep a high degree of security standards since linked systems are frequently targets of internet cyber assaults. Any network that is a part of the public blockchain is built to be as secure as possible.

Decentralized to the core

The blockchain is not maintained by a particular centralized pillar; rather, it is a decentralized database in which each user owns a record of transactions. The ledger is revised on a regular basis, and management operations are performed from various nodes.

There are no rules to follow

In terms of network server usage, there have been no precise regulations for the blockchain platform. You have no restrictions when it comes to creating this network. This one is ideal for end user channels in which the block chain technology is not confined to internal networking.

Disadvantages of Public Chain

The disadvantages of public chain are listed and explained below;

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• High energy consumption.
• There is a problem with scalability.
• Data cannot be changed.
• It is prone to cyber attack.
• Users are mandated to maintain their login keys.

High energy consumption

The miners are rewarded for solving difficult mathematical tasks. The significant power consumption renders these complicated mathematical equations unsuitable for practical uses. The miners must solve problems every time the ledger is revised with a transaction made, which requires a tremendous amount of energy.

There is a problem with scalability

Public chains are not quite as flexible as their centralized counterparts. Simply put, more the users that join the network, the greater the likelihood of it decelerating. The approach is to conduct transactions outside of the chain and rely solely on the network to store and retrieve data.

Data cannot be changed

Once an information is registered into the system, it cannot be erased. This can be a problem because sometimes the data could be wrong and as it is already entered, it remains permanent and visible to all the users who might misinterpret such data.

It is prone to cyber attack

There is no online platform that isn't prone to cyber attacks. This is a problem because users would live in fear of being hijacked. Quantum algorithms are eligible to break cryptographic encryptions. However, the new blockchain solutions inculcates quantum-proof cryptographic algorithms.

Users are mandated to maintain their login keys

Private keys are required to access the user's assets or information recorded in the blockchain. It is created during the wallet design phase, as well the user is responsible for keeping track of it. They must also ensure that it is not shared with anybody else. The wallet will be jeopardized if they do not comply. They would also lose access towards the wallet if they forget the secret keys. One of the disadvantages of blockchain is its dependency on people to maintain their login in keys.

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Conclusion

Both public and private chains have their own set of distinct characteristics, as well as advantages and disadvantages. What will work best will be determined by the application and its goal. They are always improving and addressing their flaws. As a result, picking the right blockchain might be challenging.

Thank you for reading, and thank you professor @stream4u for the lecture.