How does a private permissioned blockchain differ from a public blockchain in the context of digital currencies?

3 answers

• Nov 26, 2021 · 3 years ago
  A private permissioned blockchain is a type of blockchain where access and participation are restricted to a specific group of individuals or organizations. This means that only authorized participants can validate transactions and add new blocks to the blockchain. On the other hand, a public blockchain is open to anyone who wants to participate. This means that anyone can validate transactions and add new blocks to the blockchain. In the context of digital currencies, a private permissioned blockchain can provide more control and privacy for transactions, as only trusted participants are involved. However, it also means that the network may be less decentralized and more susceptible to censorship or manipulation. A public blockchain, on the other hand, offers greater transparency and decentralization, but may be less suitable for sensitive financial transactions due to the lack of privacy.
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• Nov 26, 2021 · 3 years ago
  When it comes to digital currencies, the main difference between a private permissioned blockchain and a public blockchain lies in the level of control and access. In a private permissioned blockchain, only a select group of participants have the authority to validate transactions and maintain the blockchain. This can provide a higher level of security and privacy, as the network is not open to the public. On the other hand, a public blockchain allows anyone to participate in the validation process, making it more decentralized but potentially less secure. Additionally, a private permissioned blockchain can offer faster transaction speeds and lower fees compared to a public blockchain, as the network is not burdened by a large number of participants. However, a public blockchain offers greater transparency and immutability, as all transactions are visible to the public and cannot be easily altered or tampered with.
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• Nov 26, 2021 · 3 years ago
  In the context of digital currencies, a private permissioned blockchain is typically used by financial institutions or businesses that require a higher level of control and privacy. These blockchains are often used for internal purposes, such as settling transactions between different branches of a company or tracking supply chain information. On the other hand, a public blockchain is commonly used for cryptocurrencies like Bitcoin or Ethereum, where transparency and decentralization are key. Public blockchains allow anyone to participate in the network and validate transactions, ensuring that no single entity has complete control over the system. However, this openness also means that public blockchains are more susceptible to attacks and require robust security measures to protect against hacking or fraud. Overall, the choice between a private permissioned blockchain and a public blockchain depends on the specific needs and requirements of the digital currency system.
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