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Public vs Private Blockchain

There is a big debate raging in the world of blockchain right now: should we be using public or private blockchains?(public vs private blockchain) Both have their pros and cons, but it can be tough to decide which is right for your project. In this article, we’ll explore both sides of the argument so that you can make an informed decision.

What are public blockchains? (public vs private blockchain)

Public blockchains are decentralized and distributed ledgers that anyone can access and use. Bitcoin, Ethereum, and Litecoin are all examples of public blockchains. Because public blockchains are open source, anyone can contribute to their development. Private blockchains, on the other hand, are permissioned and centralized. Only a select group of people can access and use a private blockchain.

What is Private Blockchain ?

A private blockchain is a distributed database that allows only authorized users to access it. In a private blockchain network, the members of the network are known and trusted by the administrators. Private blockchains are usually permissioned, meaning that only authorized users can access them.

Private blockchains have many potential use cases, such as reducing costs and increasing efficiency in supply chain management, improving data security and privacy, and streamlining regulatory compliance.

Some of the world’s largest organizations, such as banks and corporations, are already using private blockchains. For example, JPMorgan Chase is developing a blockchain platform called Quorum to help businesses speed up transactions and share data securely.

Blockchain and cryptographic

Everyone has heard about the Bitcoin and how it is going to be the next global currency. Since its launch in 2009, people have been talking about it as a great form of payment for online or offline transactions, whether that’s buying goods using apps or digital currencies like Ethereum.

But what exactly does blockchain technology have to do with this? Well… well that could be anyone who hasn’t actually put any real thought into it, so let me try my hand at explaining.

When a Bitcoin is sent out, it goes through many different stages before reaching its destination. The first stage which, according to some people, is called a Proof of Work (PoW), is the process by which an anonymous person with no apparent connection to Bitcoin tries to verify their transaction. This includes sending a hash of sorts, such as the cryptographic signature.

 Another step that occurs afterwards is known as PoS. In general, we don’t always get one result we want and that’s why all our Bitcoins end up being more like a puzzle. That’s what makes them unique, the fact that they’ve changed from a single coin to thousands of coins.

 To make matters worse is that nobody can give you permission to use your public address to send money. So basically, to make that system secure, only 10–20 per cent of the community will know about it.

The second step involves adding transaction fees, these are charged when a user wants to send a new Bitcoin, also on top of the transaction fee, 2% of the total Bitcoin is minted. Now a whole lot of other blockchain systems like Litecoin’s fees and Bancor’s fees are very small when compared to that of Bitcoin. A few years ago, I decided to take bitcoin and try my luck on Litecoin, after doing some research, I came out with some nice advice.

Don’t worry if you’re not familiar with cryptocurrencies, if you’re new to the world of finance then there’s really nothing for you but to start small. Make sure that you understand that even though Litecoin is private, it should not be taken as a perfect solution,

 because there are no limits as to what you can put into it, so as long as you have a backup plan or something else for the coins, you would probably be fine. You can easily trade it with the main network, but, if it gets too big, then it becomes hard to stop.

 At first, there was a chance of losing everything, you might lose your entire bank account, but it doesn’t happen often enough for anyone to tell someone about it. If you aren’t comfortable trading on those exchanges you can start making your own instead, it doesn’t take more than a couple hours a day.

 Just open your wallet, go in and choose how much you can offer to others and buy an LTC. Now you’re ready to trade with the main network and it shouldn’t take long for things to start happening.

After all this time, the price of Litecoin went up to around $500, but that’s not bad considering that it had started off at around $20, which isn’t a huge amount, considering the fact that it wasn’t going to be long-term.

To sum it all up, the two most basic ways to access cryptocurrency are as private or public ones. Some people prefer private while the majority uses the public ones. What you do decide depends on your preference, and some consider yourself lucky where a random wallet on the Internet was not available.

Even though both the types have their benefits and their downsides, as a matter of fact, there is nothing wrong with choosing public over private on whatever level you choose to do so. But as everyone knows, not all the public cryptocurrencies were created in the same way. They weren’t able to go out and find another wallet and try again. Only because they were based on private networks.

Then, they’ll be able to have more control over the data they have, since the network is completely private, so having a password doesn’t help in any ways. We should learn from history, if we use public networks or a platform that lets us manage our accounts, we probably won’t have any problems in the future. It’s just an unfortunate fate.

 Even as soon as you’ve understood the difference between a private and a public blockchain, you’d still have the same question in your head — “How to use one? How to create it?” Of course, like everything else, it’s not black and white, it’s complicated, but having a private and a public one for your coins is a must.

Both you, the owner, and the person who gives you access to your funds are safe, just like you are. While the one that you’ve chosen can see all the actions of anyone who owns the coins on your wallet, the other one has an audit trail for yourself, it might seem weird in every way, so it’s best to choose wisely.

Also read blockchain and its working

conclusion

A public blockchain is a decentralized network that anyone can join and participate in. A private blockchain is a permissioned network where access is restricted to certain individuals or groups.

Both public and private blockchains have their pros and cons. Public blockchains are more secure and transparent, but they can be slower and more expensive. Private blockchains are faster and cheaper, but they may be less secure and less transparent.

Ultimately, the decision of whether to use a public or private blockchain depends on the needs of the project. If security and transparency are paramount, then a public blockchain may be the best choice. If speed and cost are more important, then a private blockchain may be the better option.

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