Public Blockchain is the Bitcoin, Ethereum and Litecoin models, which can be thought of as the original distributed ledger structure. For many reasons, many still consider it a prototype for all blockchains, although it is not without drawbacks.
In simple terms, public blockchain can receive and send transactions from anyone in the world. Everyone can check them and each node has the same transmission power as the others. Before a transaction is considered valid, it must be authorized by each of its nodes through the chain consensus process. As long as each node adheres to the protocol’s specific requirements, its transactions can be validated and, therefore, added to the blockchain.
Since each node in a public blockchain has the same send and receive transaction volume as the others, it is not only decentralized but also fully distributed. The difference between “decentralized” and “distributed” is illustrated by the following illustration:
Many blockchain enthusiasts believe in the value of not only decentralized networks, but also the closest to the current Internet model, but they are also distributed. This includes Tim Berners-Lee, who founded the World Wide Web in 1989. Berners-Lee suggested that blockchains could be used to reinvent the Web in a more distributed and peer-to-peer way. Many also consider decentralization and distribution to be an important asset for public blockchains, but not all of them share this spirit. However, this is not the only benefit of public blockchains. The most important thing is that they are very safe because of their transparency: as they can be audited by anyone, it is easy to detect frauds in the blockchain. Security through openness is a well-known principle in the world of open source. This strategy is also popular in the world of digital currency. For example, all tools and content produced by the Ethereum team are open source. This helps Ethereum to be more accessible and secure.
Trustless: The goal of public blockchains has been to eliminate mediators in the first place and, more importantly, to eliminate trusts. In fact, network subscribers should not even have to trust each other for transaction processing and backup network. Public blockchains are unreliable because everyone is encouraged to do what is necessary to improve the network.
Secure: The more decentralization and active participation, the more secure the blockchain will be. With more nodes in the network, it becomes much more difficult for the bad actors to attack the ecosystem. In a public blockchain network, anyone can participate as a complete or mining node and contribute to the security of the system. It is virtually impossible for “bad actors” to come together and work together to gain control of the consensus network.
Open and Transparent: All transaction data is open to the public. The transparency of a public blockchain can be a key element that attracts a variety of use cases, from voting to financial transactions. In addition, everyone can check the validity of transactions and data.
Without trust: From the beginning, the public blockchains aimed to eliminate intermediaries of all shapes and forms, and above all they tried to eliminate the trust placed on them. In fact, network participants should not even have to trust each other to process and secure transactions. Public blockchains do not trust because everyone is encouraged to do the best for the network.
Certainly, the more decentralization and active participation are important, the safer the blockchain will be. With more nodes in the network, it’s much harder for the bad actors to attack the ecosystem. In a public block chain network, anyone can participate as a full or subordinate node and contribute to the security of the system. For “bad actors” it is virtually impossible to join together and master the consensus network
Open and transparent: All transaction data is open to the public for review. The transparency of a public block chain may be a key feature that attracts a variety of use cases, from voting to financial transactions. In addition, anyone can verify the validity of transactions and data.
Public blockchains are not only expensive, but also in terms of money. The time and energy required to complete transactions in public channels is more than that of non-public channels. In fact, each node in the chain must approve each new transaction before adding it to the chain, which requires a lot of power and time (not to mention the money).
Slow: It’s not surprising that public, permissionless blockchains like Bitcoin are extremely slow. Bitcoin can handle 7 TPS while Ethereum can handle 15. This is not a comparison for a centralized payment processor such as Visa 24,000 GST. A public blockchain is slow because the entire network consensus on transaction status through consensus mechanisms such as Bitcoin’s proof-of-work (POW). The number of transactions that can be entered into a block and the time required to process a single block are also limited.
Scalability: Currently, public blockchains can not compete with traditional systems that can handle a large number of transactions. With more subscribers and more usage, the public blockchain slows down as the number of transactions blocks the network. However, considerable progress has been made in the field of cryptocurrency to address the problem of scalability. Various technologies and innovations are designed and implemented to significantly improve the scalability of blockchains. An example is Bitcoin’s Lightning network.
Energy Consumption: The Bitcoin Consensus algorithm – Proof of Work – uses a significant amount of electrical resources to operate, resulting in environmental issues. In fact, Bitcoin consumes as much power as the country of Ireland! However, there are many other mechanisms that attempt to achieve network consensus without using large resources, such as Proof of Stake (POS).
However, transparency does not mean that public blockchains are completely unhackable. Whenever data enters a digital network, they are subject to security breaches and unethical uses. Although public blockchains seem very secure at the moment, there are always bad actors interested in exploiting the weaknesses of the system. There are often methods that are difficult to predict and to count. Therefore, one hundred percent security needs in every technology must always be read critically.
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