STEEMIT CRYPTO ACADEMY SEASON 4- HOMEWORK POST FOR TASK 5// PUBLIC CHAINS// by @moureenbronia

For this task, I will be answering question 3 which is;

WHAT IS A PUBLIC CHAIN? WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF PUBLIC CHAINS?

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A blockchain in general is a decentralized ledger technology in which transactions made using cyptocurrency are recorded as they occur. It is the technology that powers cryptocurrencies. Blockchain technology has types namely; the private chain, hybrid, consortium and the public chain. Today, we shall be looking at the public chain.

WHAT IS A PUBLIC CHAIN?

From the general meaning of the word public, we can gather that, anything that is labelled "public" is in fact open to everyone; like a public park. The word public entiles that one doesn't need permission to use that system or thing. It is because of this very reason that some people refer to a public chain as a permissionless chain. This is due to the fact that one requires no permission to use it.

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In that light, we can define a public chain as a decentralized and immutable open network where data is stored on a public domain. And because it is public, anyone who has an internet connection can access it.

There are many public chains but tron is considered as the best among them. Other examples of public chains include; Bitcoin, Ethereum and Litecoin. These cryptocurrencies were created with open source computing nodes that can be viewed by anyone.

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Public chains operate on known algorithms like;

~ PROOF OF WORK
This involves solving complicated mathematical problems. Complex puzzles are created for miners to solve in order for them to be able to create new blocks. On the down side, this algorithm consumes alot of energy.

~ PROOF OF STAKE
Here, miners are required to stake their coins in order for them to be able to participate in the mining process. Although miners are chosen at random, the more coins one has, the higher their chances are of being selected as a miner. It doesn't end here; For a user to qualify to be a node, they ought to have a specific amount of coins in their wallets. Also, one has to deposit a specific amount of these coins to qualify to be a miner.

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WHAT ARE THE ADVATAGES AND DISADVANTAGES OF PUBLIC CHAINS

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As we all know, there are always two sides to every coin; and as such, everything has a positive and negative side of to it. So let us explore the pros and cons of public chains.

ADVANTAGES

✓ It is immutable
Every time a transaction is made using cryptocurrency for instance Bitcoin, all the information pertaining to that transaction is recorded in a block on the public chain. Once recorded, the block is given an immutable signature known as a hash. It is this unique hash that makes it impossible for anyone to change any information on the block. This aspect of immutability is one of the reasons why public chains are secure.

✓It operates on a decentralized system. This entails that, after the transaction is recorded on the chain, everyone who is part of the network gets a copy of the transaction's information. This makes it hard to commit fraud. Why? Because every transaction is recorded and processed by a network of computers called nodes. Every computer has to confirm the transaction and when it does, a copy of that transaction is made public to everyone on the network.

✓Accessible
Another name for a public chain is permissionless chain. This means that one doesn't need permission from anyone in order for them to be able to access the chain. This makes it open and accessible to anyone with an internet connection.

✓It has no major operator.
This is because the public chain operates on a decentralized system. And because of this, all user have the ability to view all transaction information, they can write data and also create blocks.

✓It can be used in public sectors.
Since it is open to everyone, governments around the world can use the public chain in their public sectors. For instance; the education sector, health, agriculture, among others.

✓Security
Since it is open, anyone and everyone can use it. And as more people use the public chain, it becomes harder to hack into it hence making it secure.

✓Anoymity
The details of all participants and validators are kept secret. For instance, a user can buy and sell Bitcoin without having to reveal their identifies.

✓Transparency
The public chain is built on a system of trust since every single transaction is recorded and immutable. Therefore, all the users of the chain can view all the information pertaining to every transaction that is carried out on the chain.

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DISADVANTAGES

✓One of the biggest problems with the public chain is scalability.
The more a public chain is used, the slower it gets. It is almost like when several people are using the same WiFi...the network will be slow because of the congestion; this is just afew number of people though. With a public chain, we are looking at a thousand if not millions of people using the same network. Because of the huge number, the system clogs up. This reduces it's scalability to a great percentage.

✓Speed
The speed at which transactions are processed is slow. Remember that nodes have to verify every transaction as it occurs. Also remember that this is an open network so we are dealing with millions of uses which means millions of transactions. Therefore, with that huge number of transactions to be processed, the speed eventually slows downs compared to when the number of transactions is relatively low. The end result of this is high network delays.

Take for instance, a Visa processes about 24,000 transactions per second yet the public chain processes only 7 transactions per second. Another reason for low transaction through put is; it takes awhile for the nodes to reach a consensus.

✓Energy consumption
This has something to do with the algorithms used. Public chains like Bitcoin use Proof of work (PoW) which requires alot of electricity to function and because of this, alot of energy is consumed. This makes the public chain expensive.

In conclusion, although public chains have a down side as discussed above, they give an opportunity to everyone for equal participation. And this is one of the aspects that makes them outstanding.

CC;
Professors,
@stream4u
@nane15