Public Blockchain vs Private Blockchain: Which Platform Is Better?
Blockchain technology started becoming popular in 2009 with the release of its first cryptocurrency, Bitcoin. Moreover, five years ago, when a burgeoning open-source community began producing complete enterprise platforms, including the programmable blockchain, Ethereum, Blockchain hit the market up to the next level. At this point, enterprises started thinking of adopting this technology, and along with this, the demand for hiring a leading Blockchain development company rose.
Since the inception of blockchain technology, public and private blockchains have been debated. It’s actually very important to understand the big differences between these two when working in an enterprise environment.
Public and Private Blockchain plays a huge role in companies looking for the perfect Blockchain-based solutions, so let’s move further to know which one will be perfect for your enterprise – Public vs. Private Blockchain.
What is Public Blockchain?
A Public Blockchain network is permissionless, which means anyone can use it without getting any sort of permission. Ethereum is one of the best examples of a Public Blockchain. Moreover, if you completely want a decentralized network system, then Public Blockchain is the best option.
The public blockchain network was the very first Blockchain type in the revolution, and its best part is that it ensures that all the participants have similar rights no matter what the condition is.
However, the integration of a public blockchain network into an enterprise blockchain process may be a bit problematic.
Public Blockchain Core Features
The below-stated features make Public Blockchain an outstanding platform.
Most companies and other sites face issues related to hacking or data threats, and this is the reason each corporation wants to design a completely secure platform using Public Blockchain.
Utilizing the security protocols of Public Blockchain, anyone easily stops hacking problems. Moreover, you can ensure better quality for any project.
The term, Public itself defines that the network is open to each and everyone, so it doesn’t matter where you belong or from where you are using the network you can access the same without taking any permission.
One can get multiple benefits from Blockchain technology and can also use it for secure transactions.
It is one of the most loved Public Blockchain features. As we all know, the great thing about this network is that it is open to all, but another good thing is that no one can identify who is using the network; this means if you are using the Public blockchain, then you will be shown as an anonymous user. Moreover, no one can see your details and identity; every piece of information will stay hidden.
But people use it for illegal reasons also. Many criminals on the dark web usually use Bitcoin for illegal activities, and this is the biggest con of using Public Blockchain.
Public Blockchain mainly does not have regulations that nodes require to follow. So, there is no limit to how one can benefit from this platform. But the major issue is that corporations cannot work in a non-regulated environment.
What Is Private Blockchain?
A Private Blockchain is a permissioned network which means it is not open to all. It can be just used by a single association that has authority over the network. All the private Blockchain solutions include some sort of authorization scheme to determine who is accessing the platform.
Most of the time, for the internal networking system of the company, Private Blockchain solutions are adopted. Moreover, in this decentralized platform, you’ll get regulations that other platforms do not offer.
Small to large enterprises prefer using Private Blockchain as it offers high-level security, and using it; no other competitor can enter the platform and leak valuable information.
Private Blockchain Core Features
The features which are explained below make Private Blockchain one of the perfect platforms.
On Private Blockchain network load is lesser in comparison with Public Blockchain, and this is because specific people who have access can use it.
Moreover, when more people try using various features of the Public Blockchain, its speed gets hampered, but in the Private Blockchain, the speed issue doesn’t exist.
If I talk about a high privacy level, then Private Blockchain is more reliable than Public Blockchain. Usually, most enterprises deal with issues related to sensitive information as it gets leaked, then the massive loss can occur.
So, it’s necessary for firms to use a network that can completely secure the company and other data. And this is possible by using a Private Blockchain.
Private Blockchain includes a limited number of people who can access the network, which is why it is more stable. Moreover, basically in each Blockchain platform, you need to pay a certain amount to complete a transaction. In the public platform, this amount usually gets increased due to poor speed in completing the transaction.
But if I talk about a Private Blockchain platform, the fee remains the same as in these platforms’ transaction process occurs speedily.
The corporation needs great technologies to secure and back up its process, which is why they usually prefer employing Private Blockchain solutions. Additionally, these solutions are mainly for the enterprise’s internal systems, which helps make secure infrastructure.
Private vs Public Blockchain: Which Blockchain Platform To Use?
The parameters described below will help you know which Blockchain platform, Public or Private Blockchain.
Private Blockchain is a big authority and is used by most of the small to big enterprises, but it’s not fully decentralized, but technically it is. On the other hand, the Public Blockchain platform is fully decentralized. At this point, Private Blockchain and Public Blockchain differ.
Private Blockchain is not open to all, as it provides limited access means the corporation who requests to access the same can only use it.
Whereas a Public Blockchain network can be accessed by anyone, there are no restrictions in using it. Moreover, anyone can register on it and take part in the transaction process.
3. Transaction Cost
The transaction cost in the Public Blockchain platform can go higher, and this is because the number of nodes on the platforms slows down the performance. And this results in taking a long time to process the transaction request.
Whereas in the Private Blockchain Platform, the amount related to the transaction is very low. The reason transaction costs do not go higher is the limited resources using it, and the transaction speed is faster.
In a Public Blockchain, numerous nodes are present that have no restrictions in joining the consensus process, which is why it is free to participate in the process.
Private Blockchain decides who can join the consensus, resulting in limited node participation.
5. Data Handling
Well, in the Public Blockchain, everyone can read and write the ledger, but once the information is saved into the ledger, it can’t be changed nor edited.
Whereas in a Private Blockchain, a single corporation can participate and only add and read the information on the ledger. Moreover, they have the authority to delete a ledger.
So, in the race of Private Blockchain vs. Public Blockchain here, Private Blockchain is the winner.
Public Blockchain vs Private Blockchain: Comparison
In the race of Public Blockchain vs. Private Blockchain, it’s difficult to say which one is better as both have their own pros and cons and are suitable for different sorts of tasks. So, picking the right platform totally depends on the enterprise’s project’s requirements.
Additionally, if you wish to effectively use a Public or Private Blockchain platform, it is very crucial to seek advice from a Blockchain expert working in a leading Blockchain development company (Infrablok). By doing so, you will be able to get the right direction of using a suitable platform for your business project.