Crypto Academy Season 3 Beginners' Course - Task 3: Bitcoin, Cryptocurrencies and Public Chain
Hello Crypto Academy Family,
(1) What Is Cryptocurrency and How You Would Like To See Cryptocurrency In The Feature?
(2) What Is Bitcoin and what was the Aim Behind Bitcoin Invention? Is Cryptocurrency Good For A Business To accept As Payment? Why?
(3) What Is Public Chain and What will be the Advantages and Disadvantages of Public Chain?
But in this content I will be answering the number three(3) question which reads:
(3) What Is Public Chain and What will be the Advantages and Disadvantages of Public Chain?
But Before I proceed, I will like thank my able professor @awesononso for this wonderful lecture on Cryptocurrencies, Bitcoin and Public Chain. My regards to you sir!!
A public chain is a decentralized platform accessible by anyone. A public chain doesn't have restrictions. Anybody with an Internet connection can get access to the network through a web browser and start validating blocks and sending transactions. Typically, such networks tend to provide some quite incentive for users who validates the blocks.
Anyhow, this network tends to use Proof of labor or Proof of Stake consensus algorithms for validating the transactions. it's a “Public” network in a true sense.
Satoshi Nakamoto suggested this model back in 2009. you'll call it the mother technology. It was the interest that enterprise companies started showing later in Blockchain technology that led to the Introduction of private chains which tweaked the character of decentralized ledger.
In public chain architecture, you'll download the protocol anytime, and you'll not need any permission from anyone. the overall public chains portray the proper model that creates the technology industry so lucrative.
Thus, it’s completely decentralized, no single organization controls the ecosystem. Whereas a personal blockchain are often changed and altered by the owning organization.
A public chain surpassed the need of a 3rd party. The system features a natural flow of its own – a touch sort of a flowing river. The flow path isn't controlled by anybody, yet everyone uses it. So, how are you able to define it easily? An autonomous digital public ledger and purely decentralized, governed by itself.
The followings are the advantages of a public chain:
1. Greater Transparency: Among the users of the public chain network, they commonly share a consensus. Transparency is one of the reasons Blockchains are taken as the new monetizing system and no one has control over anything.
It was an enormous intensify from central and federal banks who had been controlling the character of the way to transact. Also, you've got to pay various charges whenever you would like to send money to someone within the traditional method.
Moreover, all the histories of the transactions are kept hidden, faraway from the general public eyes. Satoshi showed the planet that our traditional system grew too old for the knowledge age.
Everyone can keep track of the digital ledger when it is when it is shared with people. This leads to more transparency and wish of a 3rd party validating the transactions.
2. True Decentralized Structure: The network infrastructure is fully decentralized. So, all the nodes within the system will have their very own copy of the ledger. And using the consensus algorithms they will update the ledger efficiently. As there's no need for any central authority in any step, this sort of blockchain offers the truly decentralized structure.
3. User Empowerment: Anybody with an internet connection can download the copy of the blockchain and has complete authority to read or re-write it. Meaning, the overall people have the instrument panel , not an evil corporation!
4. Immutability: The public network is completely immutable. This means, nobody can tamper with the system or slip away the cash . If someone tries to tamper with the blocks like double spending, all the opposite nodes will reject the transaction. So, cases like tax fraud and lots of other problems are often mitigated with this technology.
1. Anonymity: Although, it’s an honest sign that the identity of the trading parties remains anonymous this will again be problematic. It is difficult to trace down the parties which are trading in a public chain. It is due to this features that a lot of people are using blockchain for illicit activities.
2. Consensus Mechanism: The public chain like Bitcoin works on the principle of Proof-of-Work where the participants need to solve the complex mathematical puzzle. It requires the consumption of tons of resources, thus, it’s a costly affair.
Thanks for your consideration!!
Cc: @awesononso
@steemcurator02 thanks so much I appreciate