Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,070 trillion. Bitcoin is down by nearly 2% after intense seesawing this week. Ethereum increased by almost 2% over the past seven days. XRP lost more than 1% in value this week. Almost all altcoins are trading in the red, with a few exceptions. The DeFi sector decreased the total value of protocols (TVL)…
What is a Private Blockchain?
A private blockchain is a blockchain network restricted to a specific group of users. Unlike public blockchain networks, such as Bitcoin or Ethereum, where anyone can participate, access to a private blockchain is controlled by a central authority or a set of rules set by the network administrator.
Private blockchains are typically used when a group of organizations or individuals need to share data or conduct transactions in a secure and trusted environment without a centralized intermediary. They can also create digital assets specific to a particular organization or industry.
In terms of how it works, private blockchains operate similarly to public blockchains because they use consensus mechanisms to validate and add new transactions to the chain. In addition, they use cryptography to secure the network. However, the rules and validation process for private blockchains are determined by the network administrator and may differ from those of public blockchains.
Private blockchains can have permissioned access and a different consensus mechanism, like a voting or a centralized decision-making process. This gives the administrators more control over the network and the ability to make decisions faster.
Examples of Private Blockchains
Some examples of private blockchain networks include:
- Quorum: An open-source, permissioned version of the Ethereum blockchain designed for enterprise use. Quorum offers increased privacy and security features, such as private transactions and voting-based consensus.
- Multichain: An open-source platform that allows users to create and manage their private blockchain networks. Multichain is suitable for businesses that want to create customized blockchain solutions for their specific needs.
- Chain Core: A private blockchain platform that is designed for financial institutions. Banks, asset managers, and other financial firms can build and operate secure, private blockchain networks for various use cases, like payments, digital assets, or lending.
These are just a few examples, but many other private blockchain networks and platforms are available, each with unique features and capabilities.