Cryptomonnaies

Public vs private blockchains: How do they differ

Also known as permissionless blockchains, public blockchains are completely open and follow the idea of decentralisation to the T.

Blockchain technology is the fulcrum of the ‘next internet’. At a granular level, every ‘block’ is a part of a database that records information. Blockchain is divided into two types: Public and private. While public blockchains are decentralised peer-to-peer networks, the ledger is controlled by a centralised authority in private blockchains: Meaning, the main difference lies in the level of access given to users.

What are public blockchains?

Also known as permissionless blockchains, public blockchains are completely open and follow the idea of decentralisation to the T. Bitcoin and Ethereum are both examples of public blockchains. Anyone in the network can access the chain and add blocks. Public blockchains are also largely anonymous, unlike private blockchains, where the identity of the people involved in the transaction is not kept hidden.

Security: The biggest advantage of public blockchains is how secure they are. A transaction recorded in a chain is immutable because it cannot be altered or removed, only added. Also, the validity of a transaction is recognised when the majority agree that the transaction is valid, making blockchain immune from external tampering. The more decentralised a blockchain is, the safer it is. A larger number of users makes it more difficult for hackers to band together and breach the network.

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