Over the years, we have witnessed the term “blockchain” evolve from something that was unknown into one of the hottest topics on the block.The concept of blockchain has been made more famous with the inception of bitcoin.
While Bitcoin serves as a perfect example of a public blockchain, there is another type of blockchain known as permissioned blockchain. So, what is the difference between public and permissioned blockchains?
So far, Bitcoin remains the most sought-after blockchain since anyone can utilize its cryptographic keys, anyone can be a miner, and anyone can be a hub and join the team.
Basically, anyone can peruse the blockchain, roll out improvements, and even compose another square into the chain. The blockchain is completely decentralized and open to everyone making it a perfect example of a public blockchain.
However, Ripple runs a permissioned blockchain. This fast-growing startup determines who may go about as an exchange validator on the system and fabricates its own hubs in different areas around the world.
What Is the Difference Between Public and Permissioned Blockchains?
With a public blockchain, as a user, you will always have the privilege to read and write the data stored on the blockchain since there is open access.A public blockchain such as bitcoin makes it possible for anyone to store,send, and receive data that is provided to you as a member of the network.
Nonetheless, the consent to read and write data on a public blockchain is shared equally among all the participants. This is because the blockchain is decentralized. Public blockchain don’t offer any special privileges to anyone.
Any individual can transact directly on the blockchain without any interference from third parties. The decentralization aspect of a public blockchain makes it hard to hack any transaction and change its details since all nodes on the network have a copy of the transaction.
On the other hand, a permissioned blockchain is usually controlled by a single entity. Every user on the network requires permission to send/ receive transactions on the network and to read the transactions or other events on the chain.
This restriction limits the parties who can transact on the blockchain and identifies a single party that can serve the network by writing new blocks into the chain. One of the best examples of permissioned blockchain is Ripple.Users can only become part of the network if the creator of the permissioned blockchain invites them.
The above discussion seeks to answer the question; what is the difference between public and permissioned blockchains? The primary basis of the distinction between these two types of blockchains is who is allowed to participate in the network,maintain the shared ledger, and execute the consensus protocol.
It is also good to mention that the highlighted blockchains have their unique pros and cons. Therefore, the decision on which is the best blockchain to deploy in your business will greatly depend on a wide range of factors.
Evaluate the type of data that you want to store and the people who will be granted permission to read and write data on the blockchain before you makeup your mind.