COMPARING AND CONTRASTING
There are pros and cons associated with both Public and Private blockchain networks. Let’s start off with some of the pros of using a private blockchain network. It’s important to realize that private networks are typically significantly smaller than public networks, meaning less computing power is required. Not to mention, the exclusivity of this network ensures only trustworthy parties are allowed to participate, which prevents 51% attacks. By manipulating the blockchain to have control of 51% of the nodes, hackers are able to double charge users on transactions.
51% attacks are carried out by miners with a significant amount of mining power on a blockchain. By colluding 51% of the mining power, disingenuous transactions are verified and wallets are double charged for making transactions. A private network is extremely robust against such attacks, since the nodes on this network, which can only participate by invitation from a current user, are more likely to be trustworthy and less likely to abuse their ability to validate transactions.
On the other hand, a public network carries more investment benefits than a private network. Since a lot of computing power is required to mine on these networks, public blockchains offer greater incentives and rewards for miners. This increases the popularity of these networks. The most famous cryptocurrencies are actually run on a public blockchain, the most obvious being Bitcoin. Therefore, the popularity and ease of access of public blockchains make them a good way of earning high returns.
In conclusion, there are tradeoffs involved with both public and private blockchain networks. To provide the optimal solution, it’s important to understand the differences between these networks and employ the one most suitable to a project on a case by case basis. This is bound to vary immensely, but it basically depends on the scale of the blockchain project. Ultimately, the exclusivity of a blockchain can be a useful tool for catering to this new technology across a wide variety of use cases.