Private blackany have several fundamental differences from the public block chain, and this begs the question: perhaps easier to use a database? Or is it not? Let’s explore the advantages of both options.
What is public in the blockchain?
The largest cryptocurrency Bitcoin is built based on the public blockchain, that is, where any member of the network can act as a node (network node), and all data are publicly available. Every transaction ever made since the creation of the first unit, available for study in the Explorer blocks.
Could this be a disadvantage? Possible. Some company may want to use the blockchain, but doesn’t want all the data seen everything. Public blackany in theory can violate the laws on data protection or to give out business secrets.
Read on: the Blockchain will have on the world even greater impact than the Internet: the CEO of Binance.
Public blackany also carry certain risks as the miners inside the network, which serve as the nodes can cooperate and influence the history of the blockchain. Such cases are called a 51% attack is when the attackers get the greater part of the computing power in the network and gain control of bloccano. It can harm the business if such a blockchain stored assets and steal or destroy.
More text on the topic: How can I use the 51% attack?
By the way, the miners network Ethereum blockchain changed after cracking of the DAO to return the stolen money hacker. Then the part of the network participants considered this a violation of the principle of immutability of the block chain cryptocurrency and continued to use the main Ethereum chain, giving it a distinctive name Ethereum Classic.
What is a private blockchain?
Private blockchain is a distributed register, which is controlled by one separate entity. That is, the owner of the blockchain is to him unique access. This means that the owner decides who can mine inside the network who can use the blockchain and who can view it. They are also often called “exclusive” blockchains.
In fact, in the private blockchains quite a lot of advantages — primarily for use in the field of business.
- Control – the owner can make changes to the blockchain. This means that they can edit the transaction and add a new one if you want. And sometimes it is necessary from the point of view of data protection.
- Confidentiality – transactions are not publicly available. It allows businesses to keep their valuable data away from prying eyes.
- Low cost for confirming transactions on the network is sufficient the approval of several high-performance nodes. This means that the Commission will be much lower.
- Austerity – in the case of private bloccano is not necessary to produce new coins. Thus nodes do not need to greedily consume electricity, Maini all new coins on the model of PoW.
- Security – if the company uses the nodes that are trusted, then she wouldn’t have to worry about 51% attack, which often happen in public blockchains.
- Speed – transactions can be confirmed quickly, and this means that there will be problems with the queue of transactions and higher commissions.
Do you have private blockchains are the disadvantages?
Despite the many advantages of private blockchains, they still have something to criticize. Let’s look at some of the most important shortcomings:
- Overkill – the many benefits of private blockchains exaggerated, because public blackany can also work in bestoverture environment. So if you trust the server, it will probably be easier and cheaper to use a simple database.
- Trust – public blackany work successfully, as each member of the network can check your transactions at any time. Private blockchain can not always be trusted, because it could have been edited or they can be manipulated by the owner.
- Centralization – if the private blockchain relies on just a few powerful nodes, then it has a higher potential risk to go offline. Public blackany rely on thousands of nod around the world, and that means trouble-free operation of the network.
So why not use database?
In fact, private blackany have only a few advantages over databases, and only in specific applications. Let’s find out what they appear.
- Accountability – you can track everything entered in the blockchain data from the moment of its creation.
- Partnerships – private blockchain can use several different companies. This allows each partner to verify the transaction, while not outputting the data to the public.
- Standardization , instead of trying to connect various business systems together, they can integrate with one system based on the blockchain.
Do you have private blockchains future?
Private baccani, for example, can be used to track product throughout the supply chain, and this could be done several different companies. This can provide a much more safe procedure of product creation because it allows you to provide better control.
They can also be used in the global system of financial payments — as IBM plans to do with its Blockchain World Wire. It will work on a private blockchain-based Stellar. Such a system would enable much cheaper and faster to carry out cross-border payments.
Of course, this will be done via the public block chain, but enterprises may require more oversight. And these characteristics are inherent just private blockchains.
In our cryptodata of hontarov you will find lots of other useful information.
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