In reality, there are a lot of varied types of blockchain technology ideal for varied use cases. For instance, there are public blockchain, private blockchains, and also federated blockchains. Every single one of them is distinct from one another.
However, if you do not understand how each type impacts your business structures, then it will be difficult to implement a blockchain based solution. In this article, we will explore this blockchain space. Also to help you evaluate the idea better, we will begin with defining and then gradually move towards the broad explanation.
What Is A Public Blockchain?
A public blockchain does not have limitations. Anyone who has access to the internet connection can get access to the network and they can start to validate blocks and send transactions. Generally, such networks tend to provide some form of incentives for users who validate the blocks.
Anyhow, this network tries to use PoW (Proof of Work) or the PoS (Proof of Stake) consensus algorithm for the purpose of validating the transaction. It is a “public” network in the true sense.
It was the structure that was suggested by Satoshi Nakamoto in 2009. We can call it the mother technology. Later enterprise companies started to show interest in the blockchain technology and tweaked the formula of the decentralized ledger and invented the public blockchain.
In this blockchain structure, one can download the protocol anytime, and they will not require any permission from anyone. These blockchains illustrate the ideal structure that makes the technology sector so attractive.
Thus, it is fully decentralized, no single organization handles the ecosystem. Whereas a private blockchain can be altered and changed by the owning organization. A public blockchain crossed the requirement of a third party. The mechanism has a natural flow of its own which is similar to a flowing river. No one controls the flowing path, yet everyone utilizes it. So, how can you define it simply? A self-governed, completely autonomous, and decentralized digital public ledger.
Features Of Public Blockchain
There are several features of this blockchain structure. Obviously, these characteristics are varied from other forms of blockchain. Let us see what these are –
- Each node has access to write and read on the ledger
- Anyone can download and also add nodes to the system
- The technology is completely decentralized in nature
- It provides anonymity, which implies no one can track your transactions back to you
- It is a bit slower in comparison to the private blockchain
Advantages Of Public Blockchain
Now that you have known about the definition of this blockchain and also what are its features, let us have a look at its benefits of the same.
These blockchains have a usually shared consensus among the users of the network. If someone questions why is the public network better? The first answer will be because of its transparency. The very purpose of the blockchains is thought the new monetizing system is transparency and has no control over anything.
It was a big step up from federal and central banks which had been controlling the nature of how to conduct transactions. Also, you have to pay several charges whenever you wish to send money to someone in the traditional procedure.
True Decentralized Structure
The network structure is completely decentralized. So all the nodes in the mechanism will have their very own copy of the digital ledger. And utilizing the consensus algorithms they can update their ledger effectively. As there is no requirement for any central authority in any step, this form of blockchain provides a wholly decentralized model.
Anyone who has an access to the internet connection can download a copy of the blockchain and has full authority to read or re-write it. Implies, the general people have the control panel, not an evil corporation.
The public network is fully immutable. This implies, that no one can tamper with the system or even steal away the money. If someone aims to tamper with the blocks such as double spending, all the other nodes will refuse the transaction. So, scenarios like tax fraud and many other issues can be mitigated with this technology.
Instances Of Public Blockchain
It is crucial to check out the ideal public blockchain instances for your business solution. If you wish to employ this type of blockchain technology, you are required to evaluate when to use this blockchain and when you should not.
Almost all the big players in the crypto space are based upon this blockchain such as Ethereum, Bitcoin, and Litecoin, etc. There is a highly popular public blockchain cryptocurrency. There are many who ask is Bitcoin public blockchain, and the answer is yes. But if we still have to talk about public blockchain examples then surely it would be Ethereum.
Ethereum is basically the most famous blockchain that is public at the moment. In reality, Ethereum took the idea of this blockchain to a whole new level. Presently, there are so many applications that rely on this blockchain.
Now that you know what a public blockchain is, you can efficiently implement any blockchain-based solution using these blockchains. Even though this blockchain is filled with features, still it is not that ideal for enterprise solutions. In reality, enterprise solutions require regulations, but this technology cannot provide them. That is why you should also check out for private blockchain, and federated blockchain before you take the final call.