You’re planning to implement blockchain for your business but still not sure whether to choose the public network or go private? Check our short comparison of two Blockchain models.
First developed for the purposes of cryptocurrencies, the Blockchain platform soon became a globally used alternative for handling data. Today, it finds application in various industries, including healthcare, insurance, and finance.
Anywhere where handling data requires extra safety, switching from a centralized database to Blockchain technology could be beneficial. But which model of distributed ledger to choose? Should you rely on the public network or choose a private one? Is it even possible for the Blockchain to be private? Before answering that questions, let’s take a closer look at this innovative technology itself.
What is Blockchain, and how does it work?
The traditional databases store information in a centralized manner. That means that in order to steal data, it’s enough to carry out a cyberattack on the central.
That’s not the case with Blockchain, which is a distributed, decentralized ledger. In its case, the data is stored in immutable blocks with a limited capacity. After reaching it, the block closes, while the information jumps into another block linked to it.
Such a construction makes it much harder for hackers to access this data. Another aspect that makes Blockchain the safest solution available is the encryption of the links between the blocks in the chain.
Public vs private – what’s better for your business?
In the case of a public blockchain network, all data shared within it is visible to all participants. It’s an inclusive way of managing data, but not necessarily the best for business users
The private blockchain is very similar in its construction to the public network. In both cases, the data in the blocks is immutable – once added, it cannot be changed or deleted. Both databases are distributed over a network of numerous computers.
The difference lies in access control. In the case of a private blockchain, the access is limited to authorized users. Moreover, in the case of a transaction or a different activity that adds another block to the chain, only its participants are able to access the data.
A private blockchain is a safer solution for a business since it facilitates controlling the authorization of the participants of the network. Using it, you can enjoy all the benefits of the blockchain while maintaining maximum security.
A good blockchain development services provider will help you with implementing a distributed database. Make sure to discuss both options with them and choose the right one for you!
