What are the best features of a private blockchain?
- Faster Performance: Private blockchains have lesser nodes than public blockchains ensuring faster performance.
- Manageable Network: Uptimes are maximized, downtimes are reduced while scaling is facilitated for private blockchain networks.
- Scalability: You get the best performance out of private blockchains as they are smaller in size & traffic in comparison to public blockchains, making them more suited for scalable businesses.
- Robust Architecture: The top security protocols keep malicious activities at bay while the firewall type features protect all the information from outside and inside presence within the ledger.
- Less Resources: Private blockchains take up only a handful of resources saving a lot of manpower and money.
- Regulations: It is impossible to work without a regulatory system in enterprises which is an excellent reason to use a private blockchain network.
- Low Fees: Transacting with the minimum fee is a great reason to start with private blockchains. Most of the time, you may not even need a transaction fee.
- High Efficiency: This blockchain platform offers the highest level of efficiency as only a handful of pre-authorized nodes get an entry. So, there is no way the nodes can take up more resources than usual, making the network highly efficient.
Comparison between Private Blockchain and Public Blockchain
| Comparison |
Private Blockchain |
Public Blockchain |
| Access |
Single Organization |
Anyone |
| Authority |
Partially decentralized |
Decentralized |
| Cryptocurrency Requirement |
No cryptocurrency is required |
Cryptocurrency is required |
| Transaction Speed |
Fast |
Slow |
| Consensus |
Need permission |
No permission needed |
| Efficiency |
High |
Low |
| Data Handling |
Read & write for a single organization |
Read & write for anyone |
| Immutability |
Partial |
Full |
| Native Token |
Not necessary |
Yes |
| Energy Consumption |
Consume a lot less energy & power |
Consume more energy & power as it requires a significant amount of electrical resources to function & achieve network consensus |
