In the last article, we saw a simple introduction to different types of blockchain technology. In this and upcoming guides, we will see each type in detail. For now, let’s take a look at public blockchain, its advantages, and its disadvantages.

Listen to the full article on audio

A public blockchain can be defined as a type of blockchain that is a permissionless distributed ledger technology where anyone can join and do transactions. Anyone can access the public blockchain if they have an internet connection as it is a non-restrictive version where each peer has a copy of the ledger.

Bitcoin is the earliest public blockchain that was released to the public blockchain. It sanctioned anyone connected to the internet to do transactions in a decentralized way.

Consensus methods such as Proof-of-Work(PoW), Proof-of-Stake(PoS), and so on are used to validate transactions. The engaging nodes need to do the heavy-lifting, including validating transactions to make the public blockchain work. Public blockchain will become unproductive if it doesn’t have the required peers participating in resolving transactions.

What Are the Advantages?

  • Anybody can participate in the public blockchain as it is open to everyone.
  • It brings trust among the whole community of users.
  • There are no particular rules for the public blockchain regarding network server usage. 
  • Public blockchains are also secure depending on the number of participating nodes
  • It brings complete transparency.

What Are the Disadvantages?

Transaction speed is trouble for the public blockchain. It can take a few minutes to hours before a transaction is completed. Let’s talk about bitcoin, it can only manage seven transactions per second whereas VISA manages to have 24,000 transactions per second. There is a huge difference between the numbers as it takes time to solve the mathematical problems and then complete the transaction.

Scalability is another problem with a public blockchain. The more nodes join, the slower the network becomes. However, this issue can be solved. For instance, Bitcoin is working on lighting the network, which takes transactions off-chain to make the main bitcoin network faster and more scalable.

What Are the Use Cases?

There are multiple use-cases of the public blockchain such as various government agencies, including voting applications and personal identification security. To get a better idea, let’s list some of them below.

  • Voting: Governments can use a public blockchain for voting purposes for transparency and trust.
  • Money transfer use cases: cryptocurrency transfer apps are exploding in popularity right now. It gained fame in finance for the money and time it can save.

Sign Up for Our Newsletters

Get notified of the best read on our

You May Also Like

Exploring more on the Types of Consensus Algorithm

In simple words, consensus algorithms are a decision-making method for a group, where…

Proof of stake(PoS) in Blockchain

As the name suggests, this guide talks about the Proof of stake…

pBFT- Practical Byzantine Fault Tolerance

As the topic suggests, we are going to see about Practical Byzantine…

A simple Guide to Hybrid Blockchain Technology

In the past two articles, we got to know about public and…