The exceptional interest of people in the blockchain technology leads to a number of firms accepting the technology in different ways to solve real-world issues, especially where there is an element of trust involved. Basically, blockchain is a ledger of all transactions that can be performed and seen as a write-only platform. It is where transactions once executed cannot be modified. Blockchain platform has been further divided into Public and Private blockchain.
Public Blockchain is open-source and public to all where anyone can participate and no one is in charge. In public blockchain anyone at any given point of time can join or leave, read or write, audit and the network will still be trustless. Example: Bitcoin
While private blockchain is the absolute opposite of public blockchain. In private blockchain, no one can read-write or audit the blockchain anytime unless one has the permission to do so. The owner of the private blockchain is a single entity or an enterprise which can override or delete commands on a blockchain if needed. The private blockchains mostly work as a permissioned network. The private blockchain is expected to go mainstream with widespread adaptation soon. Private Blockchains has thousands of use cases. Some of the examples of private blockchain are the Linux Foundation, R3CEV’s Corda, and the Gem Health network, from Hyperledger project. are some of the examples of the private blockchain.
Private Blockchain is the only real solution when someone wants to share data that are heavily regulated regarding privacy and security on a blockchain.
1. Reasons Behind Using Private Blockchain
Here are some reasons, which specifies that private blockchains are the best bet for most of the businesses:
- It can be used when you need the ability to change or revert transactions.
- It allows you to comply with privacy regulations.
- When there is a need for specific requirements for speed, consensus or architecture that doesn’t go well with open blockchains.
2. How Secure Is A Private Blockchain?
- Private blockchains solve security problems by using cryptography and technologies similar to what Bitcoin and public blockchains use.
- In addition to this, the consensus protocols used by private blockchains today are BFT Hardened, such as Juno. This helps in improving the security features of the blockchain by protecting it against hacking cases.
3. Why Financial Institutes And Banks Choose A Private Blockchain?
- The financial institutions and banks have been increasingly investing in blockchain technology. Most of their efforts have gone towards the private blockchain space.
- The reason behind it is that the private blockchains scale significantly better than public blockchains and the network parameters, such as transaction fees and network congestion are known in advance.
- In the case of a private blockchain, the underlying protocol development is also more predictable and it also gives more control to the banks that control it.
4. Merits Of Private Blockchains
- It has decentralized peer-to-peer networks.
- Network participation is allowed only to the members.
- Protocol execution requires an invitation.
- Maintenance of ledger needs validation.
- Controlling organizations operate all the transactions.
- Increased scalability and stability.
- All the transactions are quick and highly confidential.
- The strength of private blockchain varies according to its use.
Conclusion
By looking at all these, it can be demonstrated that Private Blockchain is more secure and provides the convenience of private communication. In the era where blockchain technology is transforming both currencies and commerce, the private blockchains are built for organizations and are even operated by the organizations.
There are well-established firms like OpenXcell, that helps you in getting your Private Blockchain. The blockchain developers from such companies help you to build and connect to private blockchain by providing customized blockchain parameters.
Public Blockchain is open-source and public to all where anyone can participate and no one is in charge. In public blockchain anyone at any given point of time can join or leave, read or write, audit and the network will still be trustless. Example: Bitcoin
While private blockchain is the absolute opposite of public blockchain. In private blockchain, no one can read-write or audit the blockchain anytime unless one has the permission to do so. The owner of the private blockchain is a single entity or an enterprise which can override or delete commands on a blockchain if needed. The private blockchains mostly work as a permissioned network. The private blockchain is expected to go mainstream with widespread adaptation soon. Private Blockchains has thousands of use cases. Some of the examples of private blockchain are the Linux Foundation, R3CEV’s Corda, and the Gem Health network, from Hyperledger project. are some of the examples of the private blockchain.
Private Blockchain is the only real solution when someone wants to share data that are heavily regulated regarding privacy and security on a blockchain.
1. Reasons Behind Using Private Blockchain
Here are some reasons, which specifies that private blockchains are the best bet for most of the businesses:
- It can be used when you need the ability to change or revert transactions.
- It allows you to comply with privacy regulations.
- When there is a need for specific requirements for speed, consensus or architecture that doesn’t go well with open blockchains.
2. How Secure Is A Private Blockchain?
- Private blockchains solve security problems by using cryptography and technologies similar to what Bitcoin and public blockchains use.
- In addition to this, the consensus protocols used by private blockchains today are BFT Hardened, such as Juno. This helps in improving the security features of the blockchain by protecting it against hacking cases.
3. Why Financial Institutes And Banks Choose A Private Blockchain?
- The financial institutions and banks have been increasingly investing in blockchain technology. Most of their efforts have gone towards the private blockchain space.
- The reason behind it is that the private blockchains scale significantly better than public blockchains and the network parameters, such as transaction fees and network congestion are known in advance.
- In the case of a private blockchain, the underlying protocol development is also more predictable and it also gives more control to the banks that control it.
4. Merits Of Private Blockchains
- It has decentralized peer-to-peer networks.
- Network participation is allowed only to the members.
- Protocol execution requires an invitation.
- Maintenance of ledger needs validation.
- Controlling organizations operate all the transactions.
- Increased scalability and stability.
- All the transactions are quick and highly confidential.
- The strength of private blockchain varies according to its use.
Conclusion
By looking at all these, it can be demonstrated that Private Blockchain is more secure and provides the convenience of private communication. In the era where blockchain technology is transforming both currencies and commerce, the private blockchains are built for organizations and are even operated by the organizations.
There are well-established firms like OpenXcell, that helps you in getting your Private Blockchain. The blockchain developers from such companies help you to build and connect to private blockchain by providing customized blockchain parameters.