Okay, time for some basic training. Most probably, you are familiar with blockchains. But, this article will take a bit deeper into the topic. There are two types of blockchains – private and public. There is no point in arguing on the debate of private vs public blockchain. Both of them have their own strength and weak points.
But first, you should know their nature and how they act and what their unique features.
Private Blockchains: The First Contender of Private vs Public Blockchain Debate
A private blockchain is basically a private or selective blockchain. Meaning, only the owner of the blockchain will choose who can join the network and who cannot. And also, only the handful chose can have the digital ledger where all the data is stored. You can follow this article to get a better idea of what a private blockchain is.
Features of Private Blockchains
There are some unique features that make private blockchains distinguishing from the public. They are as follows
- Reserved permission for blockchain usage
- Not open for public eyes.
- Generally pre-mined so one has to pay huge amount electricity bill.
- Not a pure decentralized network.
- Less volatile compared to the public blockchains
- Working side-by-side with the traditional banks and financial organizations
Public Blockchains: The Second Contender of Private vs Public Blockchain Debate
Public blockchains are like the true public ledger where anyone can join the network and have the complete authority just like everyone else in the blockchain. Everyone has the same and equal rights. Its properties are linear with Satoshi Nakamoto’s concept.
You can call it the rebellious up-right against the corporate giants. The public network dissolves the need of a third eye lurking over your personal asset. Most importantly, it doesn’t have a governing body like the private network. You can call it the main distinguishing characteristic from the private one.
A big disadvantage of the public blockchains is it consumes a lot of electrical power to perform the extremely complicated consensus algorithm. But then again, the same point can be a big advantage too. As it is minable, common people can earn cryptocurrencies by lending their processing power and the utility bill.
You can get a vivid idea from this article. So, before judging the result between private vs public blockchain, you should take a look at it.
Features of Public Blockchains
The notable features of public blockchains are as follows –
- Transparent and for everyone to join.
- Completely autonomous.
- More trustable.
- Minable; so anyone can mine this coin at home.
- Decentralized in a true sense.
- Immutable meaning the very nature of the blockchain cannot be altered ever again.
Private vs Public: The Big Debate
Transparency vs Governance
So, let’s just talk about the distinguishing features of these two. First comes the ownership condition. The private blockchains are completely run by a private company. Which means, they can change the rules anytime they want to. Although, most of them are immutable. But when the blockchain is kept hidden eyes, it raises questions.
While, on the other hand, the private blockchains are truly made for PUBLIC! Anyone can join the network. That means when the issue is transparency and openness, the verdict goes down in public blockchain’s favour.
Minability vs Power Saving
Second, the distinguishing point is the minability. You cannot mine in most of the private blockchain network as they are pre-mined. This is a good and a bad thing at the very same time. It’s a bad news that you are I cannot earn cryptocurrencies by mining. But if you see the bigger picture they will not harm the nature by consuming electricity like monsters. So, no one wins the debate of private vs public blockchain on this point.
Stability vs Roller-coaster Ride!
Third defining point is the stability. The private blockchains are more stable as the governing body will try everything to mitigate the volatility. With public blockchains, you could become king or a penniless beggar within a day. So, if you consider about volatility and stability, you cannot but go for the private blockchains.
There are upside and downside of both. Which path is better for you? Only you have the answer for that. So, set your plans according to the nature of these two. But then again, the permissioned or the private blockchains are just mere databases. It doesn’t have the appeal that a public or true blockchain offers.
What do you think about it? Let us know in the comment section below.