Public vs Private Blockchain: How Do They Differ?
Today, every business needs public and private blockchain technology. However, since the inception of blockchain technology, people have been confused between public and private blockchain.
If you are an entrepreneur, you need to understand the difference between public and private blockchain, which is best for your business.
According to Statista, worldwide spending on blockchain development is predicted to grow from 1.5 billion in 2018 to 15.9 billion by 2023.
As per Your Tech Diet stats, 75% of IoT-based firms have adapted to the blockchain at the end of 2020.
Public and private blockchain examples play a massive role in the companies looking for the best solutions from a reputable blockchain development company. But how? If you can't distinguish how these are different from each other, your solution won't work.
Now, let's discuss public and private blockchain and their best features in detail.
What is Public Blockchain?
A public blockchain network is a public network where anyone can join whenever they need it. There are no boundaries when it comes to participating. Additionally, anyone can see the ledger and take part in the consensus process.
As a leading expertise in blockchain technology, we recommend you to go for public blockchain if you want a fully decentralized network system. However, it can be uncertain when you try to incorporate a public blockchain network with the enterprise blockchain process.
Also, the public blockchain network was the first-ever blockchain technology introduced before private blockchain. It was Bitcoin that set the framework of blockchain technologies.
Let's discuss some of the best features of a public blockchain.
Public Blockchain: Best Features
● High Security
A public blockchain company always creates every single platform that awards full security. In reality, most businesses deal with online hacks daily. To minimize the chance of dealing with hacks, you should get the best public blockchain.
The security protocols can be different, but public blockchains are more or less strong.
● Open Environment
As the name suggests, public blockchain is open for all. No matter where you live, you can log into these platforms. You need a workstation and a good internet connection. You will always get all the advantages that come from blockchain technology.
● No Control
Public blockchain doesn't have any control or regulations that the nodes have to follow. So, there is no end to how one can use this platform for their improvement. The main issue is that businesses can't work in a non-regulated environment. Because, without regulations, it's hard to follow all of the needs of a project.
Why Choose Public Blockchain?
Public blockchain offers real decentralization, whereas private blockchain doesn't. As everyone has a replica of the ledger, it produces a shared nature. In a public blockchain, there isn't a centralized entity. Thus, the burden of managing the network is only on the nodes.
Nothing can compare to an entirely natural platform to anything else. A public blockchain tends to design the platforms fully transparent to anyone on the ledger.
3. Full User Access
In any network, a user has to follow a lot of rules and regulations. In many cases, the controls might not even be the right ones. But this is not the case in public blockchain networks. Here, all users are permitted as there is no central administration to monitor their actions.
What is a Private Blockchain?
A private blockchain is a particular type of blockchain technology where only a single organization has authority over the network. So, it means that it's private and doesn't allow the general people to join in.
In reality, all the private blockchain services will have some form of authorization scheme to identify entering the platform. A private blockchain can influence brand value greatly. So, in some cases, companies need privacy.
Private Blockchain: Best Features
● Great Efficiency
Though public blockchain came before private blockchain, it still lacks inefficiency. Why? It's because they allow everyone to join the network. As a result, when more people try to use the features, it takes up many resources that platforms can't back up.
● Allowing Businesses
A private blockchain development works to allow the enterprises as a whole rather than individual employees. As an entrepreneur, your business deserves great technology to back up its processes. Moreover, these services are mainly for the internal systems of an enterprise.
Private blockchain services are stable, and you can rely on them entirely. In every blockchain platform, you have to pay a fee to complete a transaction. But, in public platforms, the fee can increase as nodes ask for transactions.
Why Choose Private Blockchain?
1. Fewer Fees
Unlike public blockchain platforms, the transaction fee doesn't increase based on the number of requests.
2. Saves Money
Private blockchain saves a lot of money. As compared to a public blockchain, managing a private blockchain is easy.
As an entrepreneur, if you are looking for the best technology for your business, then a public blockchain development company and solutions can be the right choice. Why? Because you have to follow a set of rules.
That said, we came to an end of this comparison guide between public and private blockchain. There are many differences, but both public and private blockchain are the best fit for any enterprise.
But, the decision depends on your business needs and your budget. If you are still confused between both technologies, you can consult a reputable blockchain development company where the experts will make you understand which is the best for your business in the long-run.