If you are one of those who are giving crypto investment a serious thought, you gotta do your homework. Investing in cryptocurrency is a huge risk. So, you should bolster up your defenses well. Did you know that not all the blockchains are the same? There are public blockchains and there are the private blockchains.
What is the public blockchain? How does it work? How it differs from the private one? Yes, questions are rushing through your head and frankly speaking it should. That’s a positive sign!
What is the definition of Public Blockchain?
A public blockchain is such kind of blockchain where anyone from anywhere can join the network and reserves equal rights to view, download and add nodes for everyone. And so, you can join the blockchain network anytime and you will have complete and equal authority just like others. It is a “Public” network in a true sense.
It was the model that Satoshi Nakamoto suggested back in 2009. You can call it the mother technology. Later, corporations started showing interest in blockchain industry and tweaked the nature of the decentralized ledger and introduced the private blockchains.
You can download the protocol anytime and you will not have to get any permission from anyone. The public blockchains portray the ideal model that made the tech so lucrative. Thus, it’s completely decentralized, no single organization controls the ecosystem. Whereas a private blockchain can be changed and altered by the owning organization.
A public network surpassed the necessity of a third party. The system has a natural flow of its own – just like a flowing river. No one controls the flow path yet everyone uses it. So, how can you define it easily? A self-governed, purely decentralized and autonomous digital public ledger.
It’s like that definition of democracy – of the people, by the people and for the people!
Some Notable Features
- Everyone can download and run the full node.
- They are minable.
- Any human can audit or review the blockchain without asking for permissions.
- Decentralized in a true sense and focuses on P2P transactions.
- Shared by and for everyone in the network.
Why Public Blockchains?
Public blockchains have a commonly shared consensus among the users of the network. If someone asks – why is the public network better? The first answer will be transparency. The very reason the blockchains are considered the new monetizing system is it’s transparent and no has the control over anything.
It was a big slap in faces of central and federal banks who had been controlling the nature of how to transact. Also, you have to pay various charges whenever you want to send money to someone in the traditional method.
Moreover, all the histories of the transactions are kept hidden, away from the public eyes. Satoshi showed the world that our traditional system grew too old for the information age.
When the common digital ledger is shared with the mass crowd, everyone can keep track of it. This results in more transparency and need of a third party validating the transactions.
All the cryptocurrencies that have the public blockchain ecosystem, are minable. That means you can earn them in your home. All you need is a good processing power that can handle such calculations.
Empowering the Commoners
Anyone with an internet connection can download the copy of the blockchain and has complete authority to read or re-write it. Meaning, the general people have the control panel, not an evil corporation!
The public network is completely immutable. This means, no one can tamper with the system or steal away the money. If someone tries to tamper with the blocks like double spending, all the other nodes will reject the transaction. So, cases like tax fraud and many other problems can be mitigated with this technology.
That was pretty much the basics of the public blockchains. But you should check out the private blockchain also before taking any rash decision. Both the networks have their own pros and cons. Which one is better? It is completely up to you.
Some even say that the corporations and some big names in the industry got scared of the innovation. That’s why the introduction of private blockchains happened. That’s a whole another story to tell. Till then, goodbye and keep researching!