With the help of the participation of members across a distributed network, blockchain technology empowers decentralization. As a single user cannot alter the record of transactions so there is no single point of failure. In spite of all these plus points, blockchain technologies differ in some critical security aspects.
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Blockchain networks differ in the way in which who can join and who has the right to access the information. Networks are categorized as either public or private, and permissioned or permissionless.
Well coming back to our topic, in this guide, we are going to look at how blockchain security can vary according to the type of blockchain.
Well, according to the Public blockchain networks, anyone can join, and participants can remain anonymous. To validate transactions and achieve consensus, it makes use of internet-connected computers. Bitcoin is the most widely implemented example of a public blockchain. In Bitcoin consensus is achieved through bitcoin mining. Here miners are the computers on the bitcoin network, who try to solve a complex cryptographic problem to create a proof of work. Doing so validates the transaction.
With the help of private blockchains, we can use identity to confirm membership and access privileges. It only allows known organizations to join. Selective endorsement is the process that helps a private blockchain in a permissioned network to achieve consensus. In this process, known users verify the transactions. the transaction ledger is maintained by only members with special access and permissions.
It is important to know which type of network will be the best option to meet your business goals, when building a blockchain application. Private and permissioned networks help to get controlled tightly and are preferable for compliance and regulatory reasons. However, greater decentralization and distribution can be achieved through public and permissionless networks.
Points to remember
- Public blockchains are public, and anyone can join them and validate transactions.
- Private blockchains are usually limited to business networks. A single entity, or consortium, controls membership.
- Permissionless blockchains do not have any restrictions on processors.
- Permissioned blockchains are limited to a select set of certified(who are granted identities using certificates) users.