Free Money Cash Ways

Cryptocurrency

Public vs Private Blockchain | Ernst & Young’s New Blockchain Prototype

Public vs Private Blockchain, Public vs Private Blockchain | Ernst & Young’s New Blockchain Prototype
Public vs Private Blockchain, Public vs Private Blockchain | Ernst & Young’s New Blockchain Prototype

On October 30th, Ernst & Young (EY) announced a world-first for distributed ledgers. Called the Ernst & Young Ops Chain Public Edition, the company created a new blockchain prototype that combines the security of the public ledger model with the privacy of the private ledger model—thus a private blockchain.

It does this by using zero-knowledge proof (ZKP) technology on the public Ethereum blockchain. The result, it claims, is a network that will suit the needs of institutions, especially in the financial sector.

But why the need to combine the pro’s of both networks, what’s missing?

The Benefits and Problems of a Public Blockchain, Compared to Private

Anyone is able to join a public blockchain and read or write transactions. As a result, public blockchains are made up of hundreds of thousands of independent computers known as ‘nodes.’ This massive ecosystem means resilience and security—a huge positive of this blockchain model. Bitcoin and Ethereum are well-known examples of this type of blockchain.

However, every transaction on this type of ledger must be verified by each node. And with hundreds of thousands of nodes making up the network, this has become an issue.

It’s an issue because to reach consensus or verification, nodes perform a proof-of-work (PoW). A PoW is a complex cryptographic equation that is solved by the computer. Therefore, transaction times can be slow and costly and this becomes especially evident during times of high activity and volume.

This is given the term scalability, and it refers to a network’s ability to handle and process large numbers of transactions at any given time. Until scalability improves on public blockchains, many enterprises are reluctant to use them.

Another issue facing public blockchains is privacy. Each transaction provides details such as the amount, date, sender address and receiver address. This is visible to anyone on the network. Though many users love this type of transparency for safety reasons, institutions or anyone dealing in larger sums, lack business privacy.

>> Winklevoss Lawsuit Continues; Lawyer States Defendant Committed ‘No Misconduct’

The Benefits and Problems of a Private Blockchain, Compared to Public

A user must be invited to a private blockchain. As such, the network is considered closed or exclusive and can be referred to as permissioned blockchains. Naturally enough, this network model has fewer members than a public blockchain and so can be more vulnerable to hacking.

If a blockchain is fully private, then the network rules are usually controlled by one organization or by several pre-selected nodes. A consensus is reached not by every member on the network but by the selected group of nodes.

Because private blockchains are just that, private, they are well-suited to business and enterprise adoptions. Transactions are only visible to the limited numbers of invited participants.

Hyperledger is a good example of this type of blockchain. R3 is another, being a global banking and financial institution blockchain consortium based on their distributed ledger technology product, Corda.

However, as stated, what private blockchains gain in privacy, they lack in security. With far fewer nodes on the network, manipulation and/or hacking is far more plausible.

Conclusion

There are the two basic blockchain models in a nutshell. Can Ernst & Young’s new prototype truly solve the scalability issue of a large distributed ledger whilst also providing maximum security and privacy to its users? Sounds almost too good to be true, right?

Featured Image: Depositphotos/© kataklinger

 

If You Liked This Article Click To Share

Source link

Have any Question or Comment?

Leave a Reply

Categories

Arts & Entertainment
Business / Investing
Computers / Internet
Cooking, Food & Wine
E-business & E-marketing
Employment & Jobs
Fiction
Games
Green Products
Health & Fitness
Education
Home & Garden
Languages
Mobile
Parenting & Families
Politics / Current Events
Reference
Self-Help
Software & Services
Spirituality, New Age & Alternative Beliefs
Sports
Travel
Betting Systems
As Seen On TV

Arts & Entertainment


Architecture
Art
Body Art
Dance
Fashion
Film & Television
General
Humor
Magic Tricks
Music
Photography
Radio
Theater

Business / Investing


Careers, Industries & Professions
Commodities
Debt
Derivatives
Economics
Equities & Stocks
Foreign Exchange
General
International Business
Management & Leadership
Marketing & Sales
Outsourcing
Personal Finance
Real Estate
Small Biz / Entrepreneurship

Computers / Internet


Databases
Email Services
General
Graphics
Hardware
Networking
Operating Systems
Programming
Software
System Administration
System Analysis & Design
Web Hosting
Web Site Design

Cooking, Food & Wine


Baking
BBQ
Cooking
Drinks & Beverages
General
Recipes
Regional & Intl.
Special Diet
Special Occasions
Vegetables / Vegetarian
Wine Making

E-business & E-marketing


Affiliate Marketing
Article Marketing
Auctions
Banners
Blog Marketing
Classified Advertising
Consulting
Copywriting
Domains
E-commerce Operations
E-zine Strategies
Email Marketing
General
Market Research
Marketing
Niche Marketing
Paid Surveys
Pay Per Click Advertising
Promotion
SEM & SEO
Social Media Marketing
Submitters
Video Marketing

Employment & Jobs


Cover Letter & Resume Guides
General
Job Listings
Job Search Guides
Job Skills / Training

Fiction


General

Games


Console Guides & Repairs
General
Strategy Guides

Green Products


Alternative Energy
Conservation & Efficiency
General

Health & Fitness


Addiction
Beauty
Dental Health
Diets & Weight Loss
Exercise & Fitness
General
Meditation
Men's Health
Mental Health
Nutrition
Remedies
Sleep and Dreams
Spiritual Health
Strength Training
Women's Health
Yoga
Dietary Supplements

Education


Admissions
Educational Materials
Higher Education
K-12
Student Loans
Test Prep & Study Guides

Home & Garden


Animal Care & Pets
Crafts & Hobbies
Entertaining
Gardening & Horticulture
General
Homebuying
How-to & Home Improvements
Interior Design
Sewing
Weddings

Languages


Arabic
Chinese
English
French
German
Hebrew
Hindi
Italian
Japanese
Other
Russian
Sign Language
Spanish
Thai

Mobile


Apps
Developer Tools
General
Ringtones
Security
Video

Parenting & Families


Divorce
Education
Genealogy
General
Marriage
Parenting
Pregnancy & Childbirth
Special Needs

Politics / Current Events


General

Reference


Automotive
Catalogs & Directories
Consumer Guides
Education
Etiquette
Gay / Lesbian
General
Law & Legal Issues
The Sciences
Writing

Self-Help


Abuse
Dating Guides
Eating Disorders
General
Male Dating Guides
Marriage & Relationships
Motivational / Transformational
Personal Finance
Public Speaking
Self Defense
Self-Esteem
Stress Management
Success
Time Management
Survival

Software & Services


Anti Adware / Spyware
Background Investigations
Communications
Dating
Developer Tools
Digital Photos
Drivers
Education
Email
Foreign Exchange Investing
General
Graphic Design
Hosting
Internet Tools
MP3 & Audio
Networking
Operating Systems
Other Investment Software
Personal Finance
Productivity
Registry Cleaners
Reverse Phone Lookup
Screensavers & Wallpaper
Security
System Optimization
Utilities
Video
Web Design
3D Printing

Newsletter

Enter your email to receive news and updates from this blog
X
%d bloggers like this: