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    Jaata

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    Mohammad Chharchhodawala
    The document discusses public versus private blockchains. Public blockchains are open networks where anyone can participate, but they require cryptocurrency and have issues with privacy and scalability. Private blockchains are permissioned networks where participation requires an invitation, addressing the issues of public blockchains. The document recommends using a private blockchain for the project, as it would not require cryptocurrency and transactions could be validated without it through platforms like Corda and Hyperledger.

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    Jaata

    Uploaded by

    Mohammad Chharchhodawala
    55 views1 page
    The document discusses public versus private blockchains. Public blockchains are open networks where anyone can participate, but they require cryptocurrency and have issues with privacy and scalability. Private blockchains are permissioned networks where participation requires an invitation, addressing the issues of public blockchains. The document recommends using a private blockchain for the project, as it would not require cryptocurrency and transactions could be validated without it through platforms like Corda and Hyperledger.

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    The document discusses public versus private blockchains. Public blockchains are open networks where anyone can participate, but they require cryptocurrency and have issues with privacy and scalability. Private blockchains are permissioned networks where participation requires an invitation, addressing the issues of public blockchains. The document recommends using a private blockchain for the project, as it would not require cryptocurrency and transactions could be validated without it through platforms like Corda and Hyperledger.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    55 views1 page

    Jaata

    Uploaded by

    Mohammad Chharchhodawala
    The document discusses public versus private blockchains. Public blockchains are open networks where anyone can participate, but they require cryptocurrency and have issues with privacy and scalability. Private blockchains are permissioned networks where participation requires an invitation, addressing the issues of public blockchains. The document recommends using a private blockchain for the project, as it would not require cryptocurrency and transactions could be validated without it through platforms like Corda and Hyperledger.

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    © All Rights Reserved
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    of 1

    Digital/Automated contracts using permissioned

    blockchain
    “Blockchain technology” means distributed ledger technology that uses a distributed, decentralized, shared
    and replicated ledger, which may be public or private, permissioned or permissionless, or driven by tokenized
    crypto economics or tokenless. The data on the ledger is protected with cryptography, is immutable and
    auditable and provides an uncensored truth.
    In public blockchain, for any transactions we have to spend our real money to purchase respecting cryptocur-
    rency of blockchain. Cryptocurrnecy in India, for example ethereum is neither illegal nor accepted. So it is
    controversial to use public blockchain for deployment of contracts.
    The sole distinction between public and private blockchain is related to who is allowed to participate in
    the network, execute the consensus protocol and maintain the shared ledger. A public blockchain network
    is completely open and anyone can join and participate in the network. The network typically has an
    incentivizing mechanism to encourage more participants to join the network. Bitcoin is one of the largest
    public blockchain networks in production today.
    One of the drawbacks of a public blockchain is the substantial amount of computational power that is
    necessary to maintain a distributed ledger at a large scale. More specifically, to achieve consensus, each node
    in a network must solve a complex, resource-intensive cryptographic problem called a proof of work to ensure
    all are in sync.
    Another disadvantage is the openness of public blockchain, which implies little to no privacy for transactions
    and only supports a weak notion of security. Both of these are important considerations for enterprise use
    cases of blockchain.
    A private blockchain network requires an invitation and must be validated by either the network starter
    or by a set of rules put in place by the network starter. Businesses who set up a private blockchain, will
    generally set up a permissioned network. This places restrictions on who is allowed to participate in the
    network, and only in certain transactions. Participants need to obtain an invitation or permission to join.
    The access control mechanism could vary: existing participants could decide future entrants; a regulatory
    authority could issue licenses for participation; or a consortium could make the decisions instead. Once an
    entity has joined the network, it will play a role in maintaining the blockchain in a decentralized manner.
    Advantages of Private Blockchains:
    • Private Blockchains are decentralized peer-to-peer networks
    • Participation in the network is allowed to only members
    • Membership is totally controlled by the central consortium
    • Fundamentally you will know with whom you are working with
    • Execution of the protocol requires invitation
    • Maintenance of the ledger needs validation
    • Transactions are quick and highly confidential
    • Transactions are operated by the controlling organization
    • Strength varies according to the use
    • Increased stability and scalability
    • They are permissioned
    • Transactions are censorable
    We can use private/permissionless blockchain in our project. In which fake cryptocurrency or no cryptocurrency
    are required to perform transtaction and for validation of transactions. There are many blockchains available
    which doesn’t use cryptocurrency like Corda and Hyperledger(which is developed by IBM).

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