Public Vs Private Blockchain
The popularity of blockchain technology is very big in this recent world. There is a misconception about blockchain that it has only public nature. Most people think in that way because this blockchain technology initiation was based on a decentralized phenomenon. There are two main types of blockchains: public blockchains and private blockchains. Let's discuss these two blockchains and their nature.
Public blockchains are open to anyone who wants to participate. They are decentralized. Thus basically no single entity controls the network. Transactions are validated by a network of nodes each of which has a copy of the blockchain. Public blockchains are typically more secure than private blockchains because anyone can participate. This is because there are more nodes verifying transactions making it more difficult for a bad actor to manipulate the network. Public blockchains are transparent as well. This feature of public blockchain makes it ideal for applications that require transparency for example voting systems, supply chain management and online marketplaces etc. Public blockchains are strictly resistant to censorship. It is difficult for anyone to prevent transactions from occurring. This makes public blockchains ideal for applications that require freedom from government intervention such as decentralized finance. But there is a major problem with public blockchain that when many people will join the network then the total network will be slowed down which can lead to higher fees as well in some cases.
In terms of access by the small group of people private blockchain can be treated as more secure sometimes in many cases. Private blockchains are more scalable than public blockchains cause the number of users is limited. Private blockchains can handle more transactions without becoming congested. This makes private blockchains ideal for applications that require high transaction volumes, such as supply chain management and financial systems. As the network is controlled by a central authority, it is possible to enforce rules and regulations that are specific to the application. From this point of view, it is very useful for healthcare data recording. With all the advantages there are some disadvantages as well in terms of private blockchain. People normally adopt blockchain technology for transparency but here the central authority is again concerned about the issue in the case of transparency. The problem of censorship also cannot be denied.
I think depending upon the application and uses the blockchain network can be public or private no problem. The data recording and keeping system is good. A public blockchain is always preferable but sometimes due to some limitations and scalability issues, private blockchain also can perform well in many areas which is described in the post.
~ Regards,
VEIGO (Community Mod)
