Blockchain platforms are often described as being either public or private platforms. What do these terms mean, know which approach right approach for our solution or use case? section, each approach, respective benefits discussed.
Types of Blockchain
In order to properly describe a blockchain solution, additional terms must be entered into the conversation. A blockchain solution measured and described against three metrics:
• Public vs. Private
o Who can write data to the blockchain? Public blockchains large audiences or itself data in the ledger. Bitcoin great example of a public blockchain network – there rules or permissions around who can trade Bitcoin. Anyone , sell, or send Bitcoin to anyone else. A blockchain solution track how charitable donations are a non-profit would be example of solution. In such , only designated officers of the non-profit organization should be allowed to share metrics detailing how donations are allocated and spent.
• Open vs. Closed
o Who can read data from the blockchain? Open blockchains allow large audiences or itself to consume all the ledger data. Closed blockchains restrict read access. , Bitcoin great example of an Open platform; anyone world can use a blockchain explorer of any Bitcoin transaction, were a participant or not. An example of a closed blockchain solution a platform for managing elections. In such be important that only election officials have access to election results individual votes cast by each voter – such information be well-suited for public consumption.
• Permissoned vs. Permissionless
o Platforms or solutions which are open and public have for permissioning or role-based access. Such platforms are described as permissionless platforms because not have a native ability and manage identity and subsequently define and enforce permissions that identity. This mean that we cannot build a permissioned solution on a permissionless platform, it simply means if weso wedesigning and implementing and manage identity and draw permissions against that identity. When designing , determining what blockchain is if all participants are considered equal or should some have abilities or permissions that others do not? Answering help guide to using permissioned or permissionless blockchain technology.
It can sometimes be helpful model when planning your blockchain solution. to use a quadrant the one below when mapping out . For any envisioned use case, where does it fit on the model below? In other words, which combination best describes solution?
Public / Open
o Anyone can write data, anyone can read data
Public / Closed
o Anyone can write data, only can read data
Private / Open
o Only can write data, many can read data
Private / Closed
o Only can write data, only can read data