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Private Vs Permissioned Blockchain

Monax | Learn | Permissioned Blockchains

Monax | Learn | Permissioned Blockchains

What is a Permissioned Blockchain Network? The DNA of a permissioned blockchain network is no different than the DNA of an unpermissioned blockchain network. With the exception of one gene that has been mutated. Properly permissioned blockchain networks differ from unpermissioned blockchain networks solely based on the presence (or absence) of an access control layer built into the blockchain nodes. The first primary difference between a properly conceived permissioned blockchain network and an unpermissioned blockchain network is whether the participants in the network have an ability to restrict who can participate in the consensus mechanism of the blockchains network. Permissioned blockchain networks allow the network to appoint a group of participants in the network who are given the express authority to provide the validation of blocks of transactions. Or, to participate in the consensus mechanism. The second primary difference between a properly conceived permissioned blockchain network and an unpermissioned blockchain network is whether the participants in the network have an ability to restrict who can create smart contracts (if the blockchain node is logic optimized ) and/or transact on the blockchain network. Together, at Monax, we call these capabilities based permissions. The Benefits of Permissioned Blockchain Networks To understand the benefits of permissioned blockchain networks to their participants, we must consider the relative advantages which they have vis a vis their unpermissioned cousins. We must also consider the relative advantages which permissioned blockchain networks have vis a vis their cousins on the other side of the spectrum: hub and spoke distributed databases. Permissioned Blockchain Networks are More Performant Than Unpermissioned Blo Continue reading >>

Public Vs Permissioned Blockchains: Understanding The Differences

Public Vs Permissioned Blockchains: Understanding The Differences

Public vs Permissioned Blockchains: Understanding the Differences The blockchain concept is at the heart of Ethereum , Bitcoin , and other cryptocurrencies, but there is more than one type of blockchain. It is crucial for investors, traders and users to understand the distinctions between these kinds of blockchain, and how those differences may impact the way they do business. One of the most important distinctions to understand is the difference between public and permissioned blockchains. Both types of blockchains are in use in the business world and the world of cryptocurrency investment, so it is essential to have a good understanding of how these technologies differ and what they have in common. Regardless of terminology, all blockchains make use of three distinct technologies namely the use of cryptographic keys, the distributed network and the use of network servicing protocols. In Bitcoin, everyone can use cryptographic keys. Every Bitcoin user can be a node and join the distributed network. Just as importantly, anyone can become a Bitcoin miner, using their computing power to service the network and seek a cryptocurrency reward. Those miners can walk away from their status as a node at any time. When they leave, they can get a full accounting of all of their network activity. That transparency is at the heart of the Bitcoin community, and many feel it is at least partially responsible for the success of the popular cryptocurrency. The fact that virtually anyone can read the chain, make legitimate changes to it and write a new block means that Bitcoin uses a public blockchain. As long as they follow the rules, anyone can read, write and change the chain. This decentralized nature is important to Bitcoin users, and that is the definition of the public blockchain Continue reading >>

What Are The Use Cases For Private Blockchains? The Experts Weigh In

What Are The Use Cases For Private Blockchains? The Experts Weigh In

What Are the Use Cases for Private Blockchains? The Experts Weigh In Many people argue that private blockchains, run by private firms, are useless, since they make users dependent upon a third party the firm managing the blockchain. Many believe that private blockchains currently being considered are not blockchains, but rather, distributed ledger technology which has already existed. Others believe private blockchains could provide solutions to many financial enterprise problems that Bitcoin does not, such as abiding by regulations such as the Health Insurance Portability and Accountability Act (HIPAA), anti-money laundering (AML) and know-your-customer (KYC) laws. The Hyperledger project from the Linux Foundation, R3CEVs Corda , and the Gem Health network are just several of the different private blockchain projects under development. Bitcoin Magazine spoke with some well-known blockchain thinkers on their opinions of what the uses for a private blockchain might be. In general, Bloq feels it is important to build and support software that works on both public and private blockchains. This connects the private blockchain customer with public blockchain innovation, developers and new applications. I'll preface my comments with the fact that OpenBazaar is a public blockchain Bitcoin-only project, so I don't have tons of experience with private blockchains. I personally don't believe that private blockchains provide much added value above a privileged database and have yet to really see a necessary use case for them. "Private blockchains provide interesting opportunities for businesses to leverage [their] trustless and transparent foundation for internal and business-to-business use cases. With the advent of smart contracts, this technology could eventually replace many Continue reading >>

What Is The Difference Between Public And Permissioned Blockchain

What Is The Difference Between Public And Permissioned Blockchain

You have presumably been there: a job interview, with a panel of interviews sitting opposite to you thoroughly scrutinizing your resume. Whats more, you cant help the feeling that they dont believe you. As a matter of fact, you cant blame the interviewers for being skeptical. According to research that was currently conducted by Statistic Brain, it turns out that most of the information contained in job applications and resumes are falsified and misleading. How can we ensure that there is transparency in our credentials? Blockchain technology promises a world in which data is embedded in a digital code, stored in transparent, and decentralized databases protected from deletion, editing, and tampering. This system is designed to forestall fraud, by offering access to third-parties for purposes such as assessment and job interviews. Additionally, Blockchain was designed in a way that it securely does away with the middleman in any given transaction. It is achieved through setting up a peer-to-peer transaction. In this case, each transaction is verified and synched with every node related to the blockchain before it is recorded to the system. For a better understanding, let me explain how a blockchain works on your computer. Imagine that three company accountants have the same file on their computers. When you make a transaction, an email is automatically sent to the three accountants informing them of the transaction. One of the accountants then reacts to this notification by checking whether you can afford the transaction. Once the validation is done, the accountant who took care of the transaction replies to the other two with their reasoning, and if they all agree, then everyone updates their file. Now that we know how a blockchain explained, the question that could b Continue reading >>

How To Choose Between Public And Permissioned Blockchain For Yourproject

How To Choose Between Public And Permissioned Blockchain For Yourproject

How To Choose Between Public And Permissioned Blockchain For YourProject If your company is considering creating a project on blockchain, you have two options: working on a public or a permissioned blockchain. The difference between the two is similar to the public and private cloud service. One of them is open to anyone using a certain platform. The other is only available to a select group with permission to use it. To compare, think of your companys email over VPN versus Gmail. The public blockchain is Gmail anyone can sign up and access those services. A permissioned blockchain is a similar to a VPNonly a select group, given access by the company, can use the company email. Third parties are unable to use it, and they have to get approval to join. Still not sure which to choose? Heres how to decide between the two: You probably recognize the most popular public blockchains Bitcoin, Ethereum, and Ripple. Use a public blockchain if you want to involve the general population in your business. Anyone in the world can access a public blockchain to create transactions. And most public blockchains use a consensus mechanism called proof of work a statement proving youve done the work for confirming the transaction and adding it to the blockchain. Imagine I send you one bitcoin in a transaction. That transaction goes to a network of millions of nodes. Somewhere, a bitcoin miner confirms the transaction by solving a mathematical puzzle. They were the fastest to solve it, so they win the right to add the transaction to the blockchain. They record the transaction and their proof of work to get paid a commission, which they earn in bitcoin. This is how standard public blockchains work. But the more your network grows, the more nodes you have in the system. The bigger the networ Continue reading >>

What Is The Difference Between Public And Permissioned Blockchains?

What Is The Difference Between Public And Permissioned Blockchains?

Join 4,500+ attendees at Consensus 2018. Register Now! What is the Difference Between Public and Permissioned Blockchains? In our guide "How Does Blockchain Technology Work?" ,we introduced a description of the three technologies that make up blockchain technology:cryptographic keys, a distributed network and a network servicing protocol. Bitcoin is the most ambitious kind of blockchain. Anyone can use bitcoin's cryptographic keys, anyone can be a node and join the network, and anyone can become a miner toservice the network and seek a reward. Miners can walk away from being a node, return if and when they feel like it, and get a full account of all network activity since they left. Basically, anyone can read the chain, anyone can make legitimate changes and anyone can write a new block into the chain (as long as they follow the rules). Bitcoin is totally decentralized. It is also described as a 'censor-proof' blockchain. For these reasons, it's known by its widest description, a public blockchain. But, this is not the only way to build a blockchain. Blockchains can be built that require permission to read the information on the blockchain, that limit the parties who can transact on the blockchain and that set who can serve the network by writing new blocks into the chain. For example, Ripple runs a permissioned blockchain. The startup determines who may act as transaction validator on their network, and it has included CGI, MIT and Microsoft as transaction validators, while also building its own nodes in different locations around the world. A blockchain developer may choose to make the system of record available for everyone to read, but they may not wish to allow anyone to be a node, serving the network's security, transaction verification or mining. It's a mix-and- Continue reading >>

Public Vs Private Blockchain In A Wide World Of Unique Applications

Public Vs Private Blockchain In A Wide World Of Unique Applications

Public vs Private Blockchain In A Wide World Of Unique Applications Recently we explored the fundamental concept of blockchain and how its revolutionizing record keeping in a wide swath of industries. We focused on the public blockchain, an incorruptible record keeping system; transparent by being public and un-hackable due to its distributed nature. However, there is more to this globally distributed ledger system than being public and transparent. The advantages of blockchain technology transcend these characteristics, which have been made famous by applications like bitcoin. There are also private and permissioned blockchains that prioritize different elements of the technology in order to serve a variety of other applications. Public, permissioned and private blockchains are defined by who can use the system and who hosts the blockchain in order to validate transactions. Anyone can be a user or a node (host) on a public blockchain, while permissioned blockchains are operated by a wide but defined group, such as the primary stakeholders of a specific industry. A private blockchain, as the name suggests, is run and used by one organization. Each form of blockchain places a different level of importance on anonymity, immutability, efficiency, and transparency. The public blockchain, that has been made famous by bitcoin for example, prioritizes anonymity, immutability, and transparency over efficiency. Whereas permissioned blockchains value immutability and efficiency over anonymity and transparency. The private blockchain can be confusing for those just getting to grips with complex systems like bitcoin. By prioritizing efficiency over the anonymity, immutability and transparency it foregoes the characteristics normally associated with the technology. The range of app Continue reading >>

Public Vs. Permissioned (private) Blockchains

Public Vs. Permissioned (private) Blockchains

Public vs. Permissioned (Private) Blockchains A blockchain is a continuously growing list of records called blocks, these blocks are linked and secured using cryptographic algorithms. Each block typically contains a hash (a link to a previous block), a timestamp as well as transaction data. Full nodes validate all the transactions, but are unable to settle the disagreements in regards to the order in which they were received. To prevent double-spending, the entire network needs to reach global consensus on the transaction order. It achieves this by using centralised parties or a decentralised proof of work or proof of stake algorithm (and its derivatives). Contrary to popular belief, aided by deceptive blockchain marketing, blockchains are not a good solution for storing data. Each piece of information that you store in the blockchain sits in hundreds or more nodes (more than 100,000 in the case of Bitcoin) making it an extremely costly solution. This is why the Iryo Network doesnt store data on blockchain but instead, uses blockchain to ensure the transparency of transactions. As a disclaimer, competitors also dont save medical data on the chain itself (even those who use private chains). Instead, only the fingerprint aspect of a medical record file or a hash is stored on the blockchain . People believe that permissioned means that only a select group of people can access the data and thats the security feature. But its not. Since there is no real user data on the blockchain, (you) as a member of the public, cant verify the actual content of it. This means that data resides in a location where corruption can stay undetected and data can be easily modified. So why does it even exist? Mainly because of the phenomena known as hype surfing; essentially reusing old technol Continue reading >>

Types Of Blockchains

Types Of Blockchains

Blockchains & Distributed Ledger Technologies The Bitcoin White Paper was published by Satoshi Nakamoto in 2008; the first Bitcoin block got mined in 2009. Since the Bitcoin protocol is open source, anyone could take the protocol, fork it (modify the code), and start their own version of P2P money. Many so-called altcoins emerged and tried to be a better, faster or more anonymous than Bitcoin. Soon the code was not only altered to create better cryptocurrencies, but some projects also tried to alter the idea ofblockchain beyond the use case of P2P money. The idea emerged that the Bitcoin blockchain could be in fact used for any kind of value transaction or any kind of agreement such as P2P insurance, P2P energy trading, P2P ride sharing, etc. Colored Coins and Mastercoin tried to solvethat problem based on the Bitcoin Blockchain Protocol. TheEthereum project decided to create their own blockchain, with very different properties than Bitcoin, decoupling the smart contract layer from the core blockchain protocol, offering a radical new way to create online markets and programmable transactions known as Smart Contracts . Private institutions like banks realized that they could use the core idea of blockchain as a distributed ledger technology (DLT), and create a permissionedblockchain (privateor federated), where the validator is a member of aconsortium or separate legal entities of the same organization. The term blockchain in the context of permissioned privateledger is highly controversial and disputed. This is why the term distributed ledger technologies emerged as a more general term. Private blockchains are valuable for solving efficiency, security and fraud problems within traditional financial institutions, but only incrementally. Its not very likely that private Continue reading >>

How To Master The Relevancy Of Permissioned Vs. Permissionless Blockchain And Distributed Ledger Technology?

How To Master The Relevancy Of Permissioned Vs. Permissionless Blockchain And Distributed Ledger Technology?

How to Master the Relevancy of Permissioned vs. Permissionless Blockchain and Distributed Ledger Technology? As the news spotlight moves away from its focus on bitcoin and its spin-offs, and refocuses on the underpinning technology and what it actually means for businesses and all of the participants in the economic fabric, the discussion on the relevancy of Permissioned vs Permissionless Blockchain and Distributed Ledger Technology (DLT) heats up once more. To summarize and as a quick introduction, Blockchain is essentially a distributed database that allows for potentially complex trust relationships between database users. It works via a distributed network of nodes and users to move any digitalized asset from peer to peer (native records or reference records) and validation is done by the majority of nodes (mining; consensus algorithms). By design it doesnt require an intermediate party (authority) or facilitator to authenticate or to settle and confirm transactions. In essence, the primary question driving Blockchain technology is, do I trust that the data I am using is good and I can rely on it to assess my risk? Most have already heard about Blockchain and most likely this is within the context of bitcoin and other cryptocurrency. However, such technology functions in two primary modes: Permissionless (or Public): Permissionless Blockchains allow anyone to participate. The transactions are validated and processed by votes / consensus. A vote does not depend on having a prior identity of any kind within the ledger and no pre-existing trust is assumed between participating nodes. Permissioned (or Consortium / Private): Permissioned Blockchains restrict access in terms of who can perform various actions on the Blockchain. The transactions are validated and processe Continue reading >>

On Public And Private Blockchains

On Public And Private Blockchains

Over the last year the concept of private blockchains has become very popular in the broader blockchain technology discussion. Essentially, instead of having a fully public and uncontrolled network and state machine secured by cryptoeconomics (eg. proof of work, proof of stake), it is also possible to create a system where access permissions are more tightly controlled, with rights to modify or even read the blockchain state restricted to a few users, while still maintaining many kinds of partial guarantees of authenticity and decentralization that blockchains provide. Such systems have been a primary focus of interest from financial institutions, and have in part led to a backlash from those who see such developments as either compromising the whole point of decentralization or being a desperate act of dinosaurish middlemen trying to stay relevant (or simply committing the crime of using a blockchain other than Bitcoin ). However, for those who are in this fight simply because they want to figure out how to best serve humanity, or even pursue the more modest goal of serving their customers, what are the practical differences between the two styles? First, what exactly are the options at hand? To summarize, there are generally three categories of blockchain-like database applications: Public blockchains: a public blockchain is a blockchain that anyone in the world can read, anyone in the world can send transactions to and expect to see them included if they are valid, and anyone in the world can participate in the consensus process the process for determining what blocks get added to the chain and what the current state is. As a substitute for centralized or quasi-centralized trust, public blockchains are secured by cryptoeconomics the combination of economic incentive Continue reading >>

The Difference Between Public And Private Blockchain

The Difference Between Public And Private Blockchain

Blockchain Unleashed: IBM Blockchain Blog The difference between public and private blockchain May 31, 2017 | Written by: Praveen Jayachandran Categorized: Blockchain Developers | Blockchain Explained | Blockchain Identity There are a number of explanations on what blockchain is and what exactly is the difference between Bitcoin and blockchain , but another area where I get many questions, is the difference between public and private blockchain. The similarities of public and private blockchain Many flavors of blockchain have evolved over the years and the terminology is often misconstrued. This is easy to do because public and private blockchain have many similarities: Both are decentralized peer-to-peer networks, where each participant maintains a replica of a shared append-only ledger of digitally signed transactions. Both maintain the replicas in sync through a protocol referred to as consensus. Both provide certain guarantees on the immutability of the ledger, even when some participants are faulty or malicious. 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 proo Continue reading >>

The Difference Between A Private, Public & Consortium Blockchain.

The Difference Between A Private, Public & Consortium Blockchain.

The difference between a Private, Public & Consortium Blockchain. Blockchain Marketplace : Multiven expose son projet au coeur de la Crypto Valley The difference between a Private, Public & Consortium Blockchain Intrepid ReviewAs financial institutions begin to explore the possibilities of blockchain technology, they are coming up with systems that complement their existing business models. A private or a consortium blockchain platform, as opposed to the public platform that Bitcoin uses, will allow them to retain control and privacy while still cutting down their costs and transaction speeds. In fact, this private system will have lower costs and faster speeds than a public blockchain platform can offer. Blockchain purists arent impressed. A private platform effectively kills their favorite part of this nascent technology: decentralization. They see the advent of private blockchain systems as little more than a sneaky attempt by big banks to retain their control of financial markets. Though the evil plot narrative is a bit much. If big banks can utilize a form of blockchain technology that revolutionizes finance, and if they are willing and able to pass these benefits onto their customers, then it is hardly an evil plot. the idea that there is one true way to be blockchaining is completely wrong headed, and both categories have their own advantages and disadvantages.[1] Lets take a deeper look at what these might be. A Blockchain was designed to securely cut out the middleman in any exchange of asset scenario. It does this by setting up a block of peer-to-peer transactions. Each transaction is verified and synced with every node affiliated with the blockchain before it is written to the system. Until this has occurred, the next transaction cannot move forward. Anyone Continue reading >>

Private Vs Permissioned Blockchains

Private Vs Permissioned Blockchains

They are definitely not used interchangeably since they have a very different meaning/purpose: Private blockchains are private because of the genesis block they are using. Their blocks do not match with any other blockchains (you cannot link blocks from the main net to blocks of a private net with a different genesis blocks as the block header hashes won't match ). Note that any node can connect to a private blockchain if it knows a bootstrap node address to sync, the network id, and the genesis file. This node can perform any action on the private net; mine, make transactions, deploy contracts, etc. Permissioned blockchains on the other hand offer an access control mechanism so that peers are allowed or rejected based on a control value (an address, a certificate, etc.). Is a blockchain, where we allow only known nodes to participate in the network. Ideally, it is internal for an organisation, a bank per se. The first primary difference between a properly conceived permissioned blockchain network and an unpermissioned blockchain network is whether the participants in the network have an ability to restrict who can participate in the consensus mechanism of the blockchains network. Is a blockchain where we can allow certain actions to be performed only by certain addresses (wallets) There doesn't seem much difference between your two definitions. In both cases, it seems control over participation is the key characteristic. Can you expand further on the differences? Duncan Jones Jan 2 at 9:23 @DuncanJones yes, participation and data privacy differentiate these two. niksmac Jan 2 at 16:42 same here, my question is probably really how are access control implemented, is it centralized auth? if so, how is it really more secure than a centralized arch (instead of blockchain) Continue reading >>

Public Vs. Private Blockchains

Public Vs. Private Blockchains

Private or permissioned blockchains operate similarly to public blockchains but have access controls that limit who can participate in the network. This means that it operates like centralized database systems of today that restrict access to certain users. In a private blockchain, one or multiple entities control the network. This causes you to still have to rely on third-parties to transact. Now, the question is why have two different approaches? Well, to be frank, public blockchains still have a lot of hard technological problems that need to be solved.First and foremost is privacy. Transactions that take place on a public blockchain are public. This means that anyone can see them take place. This is very much in opposition to how society and traditional enterprises have operated. Private blockchains solve this by adding privacy controls at the detriment of security. In practice, private blockchains act as a middle ground between traditional cloud computing and decentralized public blockchains. Another hard technological problem that public blockchains have is scaling. Public blockchains can't handle large quantities of transactions currently. It's like the dial-up era of internet for public blockchains. On the flip side, private blockchains have many of the scaling capabilities we expect of our cloud computing today. To summarize, public blockchains have limited privacy and scaling issues that prevent mass scale adoption. Private blockchains solve these problems by being a hybrid of cloud computing and blockchain rolled into one. At first glance, private blockchains may seem like the way to go to implement blockchain technology. But, as they say, you can't have your cake and eat it too. The debate between public vs. private blockchains is analogous to that of the i Continue reading >>

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