The blockchain technology is changing with new types of protocols and consensus algorithm invented by communities and industry players. After the Ethereum came with distinctive feature and used through smart contract development other projects such as Hyperledger projects and Hedera Hashgraph also came with unique. These new blockchains are known as private blockchain or enterprise blockchain development. The way private blockchain development will revolutionalize the future of blockchain is briefed below:
What Is Private Blockchain Development?
A private blockchain is a blockchain with permission. A public blockchain is an open-source network where anyone with computing power can join but in private blockchain, one will either require permission from existing members or need to fulfill the pre-defined, coded criteria to join the network. Apart from permission feature of the private blockchain, the participants are partially known to each other as well. The reason being many industries require some level of trust in identity with whom they are transacting — for example, the supply chain of a perishable good. The biggest blockchain project which is working towards private blockchain is IBM’s hyperledger projects. Out of which hyperledger fabric is being widely accepted in the supply chain industry to create private blockchain.
Problems With Public Blockchain
The emergence of private blockchain came after some issues were faced while in public blockchain. The public blockchain is an open network, and if an enterprise is willing to store information in this immutable ledger, the same will be available to whoever joins the network regardless if they are part of that company or not.
Another major issue is scalability. Scalability means the ability of the system to record transactions per second (TPS) As of now, public blockchain records 10-15 TPS. Private blockchain as well faces the same issue, but if applied for an individual industry such as supply chain, the number of TPS would reduce and consequently will require less expectation from private blockchain system.
There are also security issues seen in the past regarding data, and public blockchain cannot be integrated with any other existing system such as ERP and other private enterprise systems.
Why Are Private Blockchain The Future?
It is evident that due to issues with public blockchain development, it will not be entirely acceptable by masses. This mass works in different industries and data storage for industry requires a level of security and secrecy from potential competition. The private blockchain development allows those industry players to safeguard their information from the outside threat with a feature of permission and inside manipulation with immutability feature.
Another reason for private blockchain to be the future of data storage is the willingness of mass to reduce data stealing. Our private data are collected by many technology giants, and we do not have traceability of our data. Blockchain technology enables this traceability, and with experimentations in blockchain development company all over the world, the feature might be available to the general public as well.
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