Blockchain a backbone:
The whole story begins in “Bitcoin” world. Coinage of the term “Blockchain” comes to the existence. We are not in a position to say if Bitcoin came into existence first or the Blockchain. However, they both coexist for a very long time. Similar to the terms of the backbone technology exist in the previous “Crypto” world initiatives too. However, Blockchain makes the world better with the functional capabilities.
Need and thrive of Private Blockchain:
The whole idea of having the Blockchain is to make data available to the Public, without any view restrictions. However, the scenarios changed. The entire concept of Blockchain to “handle the things over the current regulatory institutions.” was challenged very strongly. To be more clear, seeing the functional benefits of the Blockchain technology, the regulatory institutions and the enterprises wants a platform like “Blockchain” in their application stack too. So the Architects and the Technology forerunners created a Blockchain with restrictions and more features which holds good for the institutions/enterprise world. , and thirst on new technology gave birth to the vast and colossal discussion and development of Blockchain which suits their needs and “Private Blockchain” era begins.
Similarities between Public Blockchain & Private Blockchain
1) Distributed ledger concept is universal (Peer to Peer network)
2) Digitally signed transactions are only allowed
3) The replicas in sync through a protocol referred to as consensus
4) “Immutability of the ledger.” is guaranteed
How is Private Blockchain different from Public Blockchain?
We can term the “Private Blockchain.” as similar and equivalent to the term of “Permissioned Network.” This network needs permission to join. This network requires permission to do some actions. Access controls in the system will vary for every participant. One or more agreed and accepted Regulatory Authority or a Consortium would decide on various activities inside the network starting from joining network until executing any of the functionalities in this closed network. “Digital Identities” of the participants will be managed and monitored by the Regulatory Authority or a Consortium.
These few basic demands on the Private Blockchain environment could very well explain as “Private” go against the concept of Blockchain itself. However, the situation demands such private chain, and still, the clans of people using it will make information public than the previous situations in the “Authority/Consortium” world.
Few listed Setback reasons of Public Blockchain (just for the reader’s knowledge, not my opinion):
1) Nodes consume lots of power to run
2) Mining is tough
3) Complexity might increase over the period
One Liner (s):
In Public Blockchain anyone can run the chain, anyone can do transactions (based on base rules though), and anyone can audit/review the chain.
In Private Blockchain only allowed participants can run the chain, do transactions (based on rules) and audit/review the chain.
I wish and believe “Public Block Chain” will revolutionize the industry for, and more innovative products will be developed based on the backbone provided as part of the technology platform.
Please share your thoughts and comments, would love to hear back from you.