Make blockchain a part of your digital transformation in the right way.
Blockchain technology is a revolutionary decentralized, distributed ledger system that records the transactions made via digital assets. Since the technology became mainstream, blockchain has shown the tech world its potential to transform industries like healthcare, manufacturing, and logistics. Businesses are keen to adopt this technology and leverage their business. But until organizations pick the right kind of blockchain, the work will not be perfect. Depending on the operating model, there are two types of blockchain businesses can opt for, public blockchain and private blockchain.
What is Public Blockchain?
A public blockchain has an open network and all the information is available in the public domain. As this blockchain is not bound by any rules and permissions, any party can view and write data on the blockchain, making the data is accessible to all. Public blockchains are also decentralized and immutable. Once an entry is made on the blockchain, it cannot be altered or deleted after the entries are validated.
A public blockchain can find its applications useful in public sectors like healthcare and education. Healthcare industries can use blockchain to have a historic store of all their operations. The data can be added by doctors and medical professionals like the cost of treatment, patients details, and diagnosis. Though the data can be viewed by everyone, the data cannot be modified.
What is Private Blockchain?
A private blockchain is an invite-only blockchain that is governed by a single entity. All parties require permission to read, write, and audit the blockchain. Private blockchains have multiple layers of data to ensure certain pieces of data are confidential which adds to a higher level of security, privacy, and performance. Hence, this type of blockchain can find its applications in sensitive sectors like finance and government services. Private blockchains can also be used in the corporate sectors where the details need to be shared confidentially.
The Differences Between Public and Private Blockchains
- Public blockchains are distributed ledgers where all nodes participate in the validati0on of transactions.
- Any party can read, write, and view data on a public blockchain network.
- Once the entry is validated in a public blockchain, it cannot be modified or deleted.
- Private blockchains are permissioned blockchains. Only the consortium of the blockchain has the controls on the resources and access to the blockchain.
- The transactions on a private blockchain can only be accessed by people who will be allowed by permission.
- An organization using a private blockchain network can add and remove nodes on demand.
Many people assume that public blockchains compete with private blockchains, but that’s not the case. Both types of blockchains have their own unique purpose in different business scenarios. Public blockchains, for example, work better for B2C businesses whereas private blockchain networks are more apt for B2B businesses. Hence, businesses should adopt blockchain after assessing the needs and functioning of the company.
