The Blockchain is the latest buzz in the market. It is the technology which the companies are eyeing as the future. It has a multitude of benefits that make it the most sought-after technology of the companies. When it comes to Blockchain, then it’s a distributed ledger which has all the information stored in chronological order. Moreover, all the data on the Blockchain are time-stamped, so it becomes effortless for the companies to trace any information.
Why has Private Blockchain become famous?
In past few years we have seen a rapid growth in the acceptance of the blockchain concepts, the companies are eyeing it to be the technology of the future. Between private and public blockchain, the companies are mostly emphasizing on the use of private blockchain for some reasons which we will be looking ahead in the blog. In case of the private blockchain, the access and permissions are tightly controlled, and the rights to modify or reading the blockchain is restricted to only a few users, you can say that it is centralized which is not the case with Public blockchain. In the case of the public blockchain, the system is comparatively open and easy to access. It has an independent network.
In case of the private blockchain, the user is sure that they will reap the benefits of private blockchain while availing the interests of all the features of blockchain like decentralization, immutability, no interference of the third party, etc.
What is Public Blockchain and Private Blockchain?
Though this picture looks quite lucrative it’s not; there is a particular segment that does not trust the entire operation of the blockchain, primarily because anyone can become a part of the blockchain, thus making the system more vulnerable. When it comes to blockchain there are two variants :
- Public Blockchain – As the name indicates, public blockchain is a blockchain that anyone can read, trade and transact. In public blockchain, you can also expect to see them included if they are valid and any person can participate in the consensus process. Consensus process is the mechanism via which the transactions are validated in the blockchain.
- Private Blockchain– Private blockchain is where permission is kept centralized to one location. The write permission is centralized, but the read permission may be public or restricted to an arbitrary extent. Its applications include auditing, database management, etc. Such applications are usually confined to the enterprise, and thus there is no need for the readability to be public and although in case of auditing, the public readability may be required and thus private blockchain is designed for enterprise solutions. Thus, benefitting companies a lot.
Advantages of Private Blockchain over Public Blockchain-
When it comes to the series of advantages that private blockchain offers over the public blockchain, then the most critical aspect of it is that companies reap the benefit of blockchain while restricting the readability. Apart from this, there are other sets of advantages which makes private blockchain an excellent choice by the companies:
Flexibility- The essential feature of private blockchain is that the company using this platform can change the rules of the blockchain, modify balances, and report transactions. Thus giving the organization complete control over the working of the private blockchain.
In the case of the private blockchain, the validators are known so sudden market fluctuations won’t affect the functioning.
In the case of the private blockchain, only a few nodes are involved in validation, and these nodes have the high processing power, it consumes lesser energy an thus becomes cost-effective.
The nodes are well-connected, and thus you can fix it by manual intervention.
Read permissions are restricted, and therefore private blockchain provides a greater level of security as compared to the public blockchain.
Thus, we see that private blockchain offers a series of benefits which covers the cost aspect, the time consumption aspect, and the security aspect. It means that private blockchain proves to be highly beneficial for the companies if they are looking for a cost-effective, state of the art and secure technology.
After reading this it appears that private blockchain looks promising as far as businesses or enterprises are concerned, but when it comes to its application on the ground, then there are specific areas of concern, which if improved, can make blockchain a viable solution for the companies to establish transparency and seamless flow of work.
Let’s analyze the complaints about blockchain-
- Inability to share data
- Compatibility issues
If companies are planning to use blockchain, then it must overcome all these differences. Moreover, we are planning to use blockchain as a means to transmit and transfer value then it must be able to form a conduit to connect the disconnected system such that a seamless flow of information is created.