Public vs. Permissioned vs. Private Blockchain

Public vs. Permissioned vs. Private Blockchain

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A private blockchain is a completely closed network to the public and can only be accessed by a pre-approved set of participants. Only authorized users can participate in the network, view the ledger, and validate transactions. This type of blockchain is typically used by organizations that want to keep their transactions and data private and secure.

A permissioned blockchain, also known as a consortium blockchain, is similar to a private blockchain in that it is not open to the public. Still, it is slightly more decentralized than a private blockchain. In a permissioned blockchain, a group of pre-approved organizations or individuals can validate transactions and maintain the network. This type of blockchain is often used in finance and supply chain management industries, where multiple parties must share data securely.

A public blockchain, on the other hand, is a network that is open to the public, and anyone can participate in the network, view the ledger, and validate transactions. This type of blockchain is decentralized and is not controlled by any single entity. Examples of public blockchain networks include Bitcoin and Ethereum.

Examples of Public, Permissioned, and Private Blockchains

Some examples of public blockchain networks include:

  • Bitcoin: The first and most well-known cryptocurrency, Bitcoin uses a public blockchain to secure and validate transactions on its network.
  • Ethereum: A decentralized platform that enables the creation of smart contracts and decentralized applications, Ethereum also uses a public blockchain.

Some examples of permissioned blockchain networks include:

  • Hyperledger: An open-source project created by the Linux Foundation, Hyperledger is a collection of permissioned blockchain frameworks and tools often used in enterprise settings.
  • R3 Corda: A permissioned blockchain platform designed specifically for financial services companies, Corda is used by a consortium of over 200 banks and financial institutions.

Some examples of private blockchain networks include:

  • Quorum: An enterprise-focused version of Ethereum, Quorum is a private blockchain often used in the finance and healthcare industries.
  • Chain Core: A private blockchain platform designed to be highly scalable and secure, Chain Core is used by various organizations in industries, including finance and supply chain management.

In summary

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A private blockchain is closed off and only accessible by pre-approved users. A permissioned blockchain is semi-decentralized and open to pre-approved users, while a public blockchain is decentralized and open to the public.

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