Blockchains can be broken down into two broad categories; public and private. While both are similar in that they are decentralized networks which are peer to peer, private networks are used mostly by specific organizations and have very strict access requirements, while public Blockchains are geared towards the general public.
The most famous example of a public Blockchain is Bitcoin. It is easy for anyone to access, and this is the one thing that all public Blockchains have in common. No one entity controls the data which is on these Blockchains, nor do they control the laws which regulate it. No one can alter its protocols or the data which is contained within it. This means that everyone who uses it can place their full trust in third parties and other members who also use it.
The key thing which separates a public Blockchain from a private Blockchain is who is given access to the network, as well as consensus protocol execution and shared ledger management. Public Blockchains are totally open and everyone can join the network and participate in it. The majority of these networks also have an incentive system which encourages additional users to join. Bitcoin is the largest public Blockchain in the world and its success shows the effectiveness of these networks.
The greatest benefit of public Blockchains is their efficiency. Since transactions are handled through relevant parties directly, with no intermediary between them, the transaction can be settled quickly, especially since its digital. These Blockchains also incorporate “smart contracts,” which means that commercial actions will occur which are dependent on specific criteria being met. This means digital transactions will be completed faster and more cost effectively.
The second benefit of a public Blockchain is auditability. Since every transaction will be recorded in an indefinite and sequential manner, it gives an audit trail which is indelible. This is critical in situations where source data is necessary for verifying the authenticity of an asset. The third benefit of public Blockchains are their traceability.
It can be used to accurately track merchandise through supply chains, and data related to the merchandise can be relayed to the next owner so they can take the needed action. This means public Blockchains will dramatically improve supply chains globally. Public Blockchains are also exceptionally secure. Security has become a major issue in digital transactions, and due to recent data breaches and lapses on the part of large financial institutions, the Blockchain was developed as a solution.
Each transaction that occurs via the Blockchains we design will be verified independently through advanced cryptography, meaning the data’s authenticity will be guaranteed. Our Blockchains will also give you transparency, meaning that you won’t have to worry about commerce delays and the relations breakdowns that accompany them. Since our Blockchains provide transactional details in conjunction with commercial constructs, greater trust can exist within the process, giving rise to relationships that are far more stable. Contact us to learn more about the benefits our Blockchains provide.