A node is any computer that connects to the Bitcoin network and uses the p2p protocol, which allows nodes to communicate with each other on the web and disseminate information about transactions and blocks. These nodes, between which information is distributed, comprise a blockchain network. We have prepared for you the explanation of the main perks and differences of Private and Public Nodes for you to benefit the most!
How Do Public Nodes Function ….
A public blockchain is an open network. Anyone can download the protocol, read, write an addendum to it and take part in the system.
The public blockchain is distributed and decentralized. Transactions are recorded in the form of blocks and are connected so that they form a chain. Each new block has a timestamp, and it is checked by host computers (nodes) before it is written to the blockchain.
All transactions are public, and all nodes are equal. The data in the public blockchain is unchanged: it cannot be changed after the blocks are verified.
On the most popular public blockchain, the open-source cryptocurrency Bitcoin is built. Another outstanding example is Ethereum, with which you can create and run smart contracts. In Public Blockchain, we need to change a bit the incentive for good behavior, because we don’t know who a user is.
Some of the benefits of public blockchains are: open read and write, immutability, security due to mining.
….And The Private Ones
A private blockchain is a network managed by one organization, and you can participate in its work only at the invitation of such an organization and the corresponding permission from it.
Network participants must have permission to read, write or check the blockchain. There are various levels of access to a private blockchain, and information must be encrypted to protect confidentiality.
Private blockchains allow organizations (companies) to use distributed registry technology while eliminating the possibility of data leakage or publication.
However, the above means that private blockchains lack an essential feature — decentralization. Some critics believe that private blockchains are not blockchains at all, but centralized databases that use a distributed registry.
Private blockchains are faster, more efficient and more economical than public blockchains, which require a lot of time and energy to verify transactions. In a Private Permissioned Blockchain, we rely on the fact that we know who a user is.
Some of the bonuses of private blockchains are permitted enterprise, faster transactions, better scalability, and compliance support.
What To Opt For?
When you contrast a public blockchain to a private one, I think it all starts with managing personal data: in a private blockchain, you know from the very beginning who all the participants are.
Using the public nodes, again, you do not know who all these participants are, but this does not mean that you cannot build a permission model on a public platform. Then you, your architects and developers, will have to develop the logic and mechanism for managing personal data.
They are two completely different blockchains. They serve different purposes, and you will see that many of the real-world use cases that you find easily use both types of blockchain.
