Understanding Private BlockChain.
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Hello friends and TFC lovers am super glad to be back in your faces once again. I trust you've been enjoying my blog. I will keep doing my best to keep sharing informative and educative content in this space just like I have again today. Let's enjoy this ride.
Blockchain as we know is a permissionless distributed ledger that stores information permanently. Well this is my personal definition. I believe it's cool to formulate your definition the way you understand a concept,I just did...lol.
Today we will be looking at an aspect of blockchain that seems to deviate from the general view of what we know blockchain to be. An important feature of a typical blockchain is "permissionless" but in this write up we will be considering a permissioned or managed blockchain which is known as Private Blockchain. Sit back and enjoy.
A private blockchain which is also known as managed blockchain is a permissioned blockchain that is controlled by a central authority or better put,it is controlled by an organization. This means,the organization determine who can function as a node on the chain because access have been restricted to all and sundry.
In this type of blockchain,not all node have equal right and privilege because this is being determined by those in charge (authority). Well you won't be wrong to say that a private blockchain is a partial or semi centralized chain because it has a very high level of control even though it is called a blockchain.
One of the major reason why people advocate for this kind of blockchain is that it restrict information from all and sundry,not everyone can have access to some kind of information. It is believed that some information are highly classified and as such should not be open to all. It is also believe that private blockchain has better scalability and speed when compared to public BlockChain and this is because the number of nodes on it are lesser than that of a public blockchain.
Let's not forget that Scalability has a lot to do with number. If public blockchain is permissionless,it means many people (node) can join in and be part but with private,you need to seek permission before you can be part,your membership will have to be subject to some sort of approval. Hence the large number of people on a public blockchain and the more the people the higher the Scalability issue and slow transaction speed.
As good and advantageous as this blockchain seems to function,it also have some downside to it. Let's explore few of these downside below.
- Transparency
This chain is less transparent because those in charge can manipulate things to their advantage which defeats the idea of a blockchain.
- Centralization
This type of blockchain is not fully decentralized. A typical blockchain is supposed to be decentralized,by decentralization I mean every node is suppose to have a say and to function without undue control.
- Security
This type of chain is said to have a higher risk of exposure to attacks and this is because there are fewer nodes on it. A fraudster can easily gain control of the chain and carry out his malicious act.
Am sure you have learnt one or two lessons from my write up. For some of us that didn't know there was something called a private chain have now being enlightened by this lecture. I will also do well to talk extensively on the other chains in subsequent post.
Regards:
@lhorgic♥️
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Security is very important in a blockchain, the lesser validators can affect the security.
You're right with your submission. Thanks for dropping by. I really appreciate.
Discussed a very important subject . You learned a lot through this important post of yours.
Thanks so much dear friend,your comment is much appreciated.
Thanks for your support @steemdoctor1. It is much appreciated.
Although, it solves some problems in the blockchain space but I don't like the idea of centralization. Thanks for sharing.
I also don't like the idea too. This type of chain is suitable for business organizations,it makes it easy for them to control the flow of activities. Funny enough Ripple (XRP) is a private chain.