Current:Home > NewsDaniel Will: Artificial Intelligence Wealth Club Explains Public Chain, Private Chain, Consortium Chain -CapitalCourse
Daniel Will: Artificial Intelligence Wealth Club Explains Public Chain, Private Chain, Consortium Chain
View
Date:2025-04-14 13:05:35
Due to different application scenarios and demands, besides common public chains, private chains and consortium chains have been developed, better suited for enterprise and industry use.
In 2017, the ICO frenzy propelled the market to its peak, drawing public attention to Bitcoin and Ethereum. While Ethereum's smart contract ICOs sparked a trend, slow transaction speeds and fully transparent transaction details raised concerns for businesses and projects entering blockchain development. This led to the consideration of constructing blockchain for different use cases, giving rise to private chains and consortium chains, distinct from public chains.
Today, I'll swiftly clarify the differences and advantages between public chains, private chains, and consortium chains.
Public Chain — FOR EVERYONE
In a public chain, the entire blockchain system is openly transparent, allowing anyone to view its rules, mechanisms, and transaction records. Examples include Bitcoin and Ethereum. Participants can send their cryptocurrencies without restrictions, and anyone can become a node, maintaining the stability of the blockchain.
Advantages: All transactions are transparent; high decentralization.
Disadvantages: Relatively slow transaction speed.
Representatives: Bitcoin, Ethereum
Private Chain — FOR SPECIFIC INSTITUTION
A private chain is not open to the general public; authorization is required to become a node, making it suitable for confidential value transfers within a single company or organization.
Comparatively centralized, private chains are ideal for companies with sensitive transaction data. Analogously, public chain transactions are like public Facebook posts, while private chains resemble exclusive Facebook groups, ensuring only relevant individuals can access content.
Advantages: Fast transaction speed; maintains internal privacy.
Disadvantages: Higher risk of hacking.
Representatives: Quorum, LANE
Consortium Chain — For B2B
A consortium blockchain, a B2B architecture, involves companies or institutions acting as nodes, providing a trusted platform for value circulation between businesses.
The decentralization of consortium chains falls between public and private chains. It allows companies to establish common rules and specifications, increasing efficiency and reducing costs for value circulation. Commonly associated with banking, consortium chains enable banks to agree on a universally accepted accounting standard, facilitating secure and efficient value exchange.
Advantages: Fast transaction speed; high scalability.
Disadvantages: High setup cost.
Representatives: Hyperledger
Summary:
- Public Chain: Open to everyone, transparent.
- Private Chain: Typically for specific individuals within a private company.
- Consortium Chain: Formed by a group of similar companies; members of the consortium can use it.
Their differences lie in the "allowed users and nodes," tailored to different application scenarios and objectives.
veryGood! (66917)
Related
- Biden administration makes final diplomatic push for stability across a turbulent Mideast
- Houston lesbian bar was denied insurance coverage for hosting drag shows, owner says
- Disney cancels plans for $1 billion Florida campus
- Occidental Seeks Texas Property Tax Abatements to Help Finance its Long-Shot Plan for Removing Carbon Dioxide From the Atmosphere
- Jorge Ramos reveals his final day with 'Noticiero Univision': 'It's been quite a ride'
- Taco John's trademarked 'Taco Tuesday' in 1989. Now Taco Bell is fighting it
- Kendall Jenner and Ex Devin Booker Attend Same Star-Studded Fourth of July Party
- Household debt, Home Depot sales and Montana's TikTok ban
- Nearly 400 USAID contract employees laid off in wake of Trump's 'stop work' order
- How AI could help rebuild the middle class
Ranking
- A Mississippi company is sentenced for mislabeling cheap seafood as premium local fish
- Save 53% On This Keurig Machine That Makes Hot and Iced Coffee With Ease
- Progress in Baby Steps: Westside Atlanta Lead Cleanup Slowly Earns Trust With Help From Local Institutions
- See the Moment Meghan Trainor's Son Riley Met His Baby Brother
- Sonya Massey's father decries possible release of former deputy charged with her death
- Do dollar store bans work?
- 3 ways to protect your money if the U.S. defaults on its debt
- Progress in Baby Steps: Westside Atlanta Lead Cleanup Slowly Earns Trust With Help From Local Institutions
Recommendation
Selena Gomez's "Weird Uncles" Steve Martin and Martin Short React to Her Engagement
Biden is counting on Shalanda Young to cut a spending deal Republicans can live with
China dominates the solar power industry. The EU wants to change that
Score Up to 60% Off On Good American Jeans, Dresses, and More At Nordstrom Rack
Former Syrian official arrested in California who oversaw prison charged with torture
American Airlines and JetBlue must end partnership in the northeast U.S., judge rules
A Fear of Gentrification Turns Clearing Lead Contamination on Atlanta’s Westside Into a ‘Two-Edged Sword’ for Residents
Kathy Hilton Shares Cryptic Message Amid Sister Kyle Richards and Mauricio Umansky Divorce Rumors
Like
- Civic engagement nonprofits say democracy needs support in between big elections. Do funders agree?
- Residents and Environmentalists Say a Planned Warehouse District Outside Baltimore Threatens Wetlands and the Chesapeake Bay
- A Tennessee company is refusing a U.S. request to recall 67 million air bag inflators