Season 5 Beginner Course // Bitcoin, Cryptocurrencies, Public chains.// Steemit Crypto Academy S5 - Homework Post for Task 5 by @ oshimadu
Hello steemians , Today I have prepared this post as Task 5 in the Steemit Crypto Academy community. To do this, I will answer the third question of task 5 of the fixed courses, taught by the professor @stream4u.
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Entire question
(3) What Is Public Chain and What will be the Advantages and Disadvantages of Public Chain?
01 What Is Public Chain.
Before taking for granted a technical definition of what a public chain really means, it is important to highlight that, as with centralization processes, where control is limited by a certain number of people, and decentralization, which does not depend on of any macro or central authority, the same happens with public and private channels.
Public and private chains have a characteristic in common, both are networks that allow transactions to be shared in a secure or immutable way, however, the difference lies mainly in accessibility, who can access them and who cannot.
In the private blockchain, there are restrictions, that is, they require an authorization or invitation to access them. Validation of this authorization by a network is necessary, or according to the parameters that have been established.
Given this, we can define that it is a public chain, it is a decentralized network, without restrictions, open, in which anyone can access it. It is a blockchain that does not require permissions to join it, whoever wants to participate can do so, in addition to reading or writing data on the blockchain.
An important aspect to know is that once this data is validated it cannot be modified or deleted, that is, it is immutable.
In the public chain, the participation of the users who validate the blocks is given by an incentive that keeps them motivated.
Another feature to highlight is that in these chains the users can and usually are anonymous. Because there is no entity that controls the chain and the rule that anyone can participate, users are not required to present information where they validate who they are.
The public blockchain is usually known as the only true blockchain, this is because it is the only type of chain that does not have any kind of restriction; it is open and fully decentralized. Other types of blockchains are not fully decentralized or have some kind of restriction.
02 Advantages of the public chain.
- Although this network is open to all who want to participate, it is immutable. Everyone can access it, but only in reading mode, since the data once validated is unalterable, it is not possible to modify or delete it. In the event of attempted alterations, the transactions will be rejected. Immutability ensures that there are no tax fraud.
Transparency in transactions: Although anyone can have access to the chain's data store, these cannot be altered, hence it is a reliable system.
The transactions are kept anonymous.
Greater empowerment on the part of users: There are no restrictions of any kind, anyone with a computer or mobile device that has internet access can carry out transactions, in addition to sending and receiving them from and to any part of the world.
Access to data in a public way: All data that is stored in this line of the blockchain is in the public domain.
Given that public channels require consensus algorithms and do not require permissions, anyone can participate from their mobile device or a PC, downloading the code and then starting to carry out transactions or validate them.
It works 24 hours a day , By having thousands of nodes working around the world and without any intermediary or central entity that controls the network, transactions can and are carried out in real time.
03 Disadvantages of the public chain.
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The transactions are transparent, but anonymous, which can lead to illegal activities. At any given time, if for some reason it is required to locate the people involved in the public chain, it will be a practically impossible mission.
The consensus model in the public blockchain can be somewhat expensive, since to know and participate actively, people will need the investment of resources to solve the algorithms efficiently.
Just as immutability is part of its advantages, it can also be a great disadvantage in the face of data errors. Once these data have been wrongly recorded, they cannot be modified, with serious consequences.
Potential Increase in Unemployment ,Public Blockchain Eliminates Middlemen; in charge of safeguarding the information and imparting confidence to its participants. Therefore, certain entities and professionals could be affected.
Conclusion
The blockchain technology and its cryptography system came to present a decentralized monetary system, which offers a lot of independence to users and to a certain extent protects their identity.
Without a doubt, the availability of decentralized applications facilitates the handling of crypto assets for most of the people who are getting familiar with this virtual financial world. Transactions run faster compared to a traditional financial system. Of course it has its advantages and disadvantages, but it is very useful when managing your finances.
Thanks.