Ledgers have been used for centuries to record transactions and keep track of assets. With the advent of blockchain technology, the use of digital ledgers has become widespread. There are two types of digital ledgers - public and private. In this post, we will explore the differences between the two and their use cases.
Public Ledgers
A public ledger is a blockchain that is open to the public. Anyone can join the network, view the transactions, and add a new block to the chain. The blockchain is decentralized, which means that no single entity controls it. All the nodes in the network have a copy of the blockchain, and they all validate transactions. Examples of public blockchains include Bitcoin, Ethereum, and Litecoin.
Private Ledgers
A private ledger is a blockchain that is restricted to a group of individuals or organizations. The blockchain is not open to the public, and only authorized users can join the network, view the transactions, and add a new block to the chain. The blockchain is centralized, which means that a single entity controls it. Examples of private blockchains include Hyperledger Fabric, Corda, and Quorum.
Key Differences
The primary differences between public and private ledgers are:
Access - Public ledgers are open to the public, while private ledgers are restricted to authorized users.
Decentralization - Public ledgers are decentralized, while private ledgers are centralized.
Governance - Public ledgers have no central authority, while private ledgers are controlled by a single entity.
Use Cases
Public and private ledgers have different use cases:
Public ledgers are useful for applications that require transparency and openness, such as cryptocurrencies and other financial applications.
Private ledgers are useful for applications that require confidentiality and privacy, such as supply chain management, healthcare, and government services.
Key Takeaways
Public ledgers are open to the public, while private ledgers are restricted to authorized users.
Public ledgers are decentralized, while private ledgers are centralized.
Public ledgers are useful for applications that require transparency and openness, while private ledgers are useful for applications that require confidentiality and privacy.
Read More: WHAT ARE PERMISSION LEDGERS?
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