Blockchain – the buzzword in technology circles, has notched one success milestone after another in the past couple of years. A lot has been written or spoken about how blockchain works, its powerful impact on different industry verticals, and of course, the technology’s die-hard popularity.
The first thing that comes to mind when we think about blockchain is cryptocurrency. You would agree that are very few success stories that have gained as much mileage as Bitcoins. Now, technology watchers are waiting with bated breath to see how blockchain impacts other sectors – healthcare, banking, insurance and government to name a few. Here, our intention is to help you understand a bit more about fast private blockchain and how NeuroTags is leveraging its many advantages for clients.
Understanding Blockchain
Security concept illustration of people holding a chain
But first things first. Before delving into the realms of a private blockchain, here’s an overview of blockchain technology – the centralized, distributed public ledger with an ever-increasing list of records collated as blocks.
- The blocks present in a blockchain are interlinked via cryptography.
- Cryptography is responsible for keeping the confidentiality of all types of transactions secure and intact.
- Blockchain refers to a time-stamped series of data records directly managed by a series of computers. The tamper-proof records are not controlled by any central authority.
- The data shared on blockchain networks can be viewed by all participants who hold accountability for their actions.
- Public, private, permissioned and consortium are four types of blockchains with different features and functionality.
- Overall, a blockchain is a perfect example of a democratized system.
Enabling digital capabilities in brands through anti-counterfeiting, user engagement, data analytics and supply chain visibility solutions, NeuroTags is a fast private blockchain.
What is Private Blockchain?
As obvious as it may sound, a private blockchain is at the other end of the spectrum to a public blockchain. There are several functions in the ‘closed’ state in a private blockchain like NeuroTags. Private blockchains permit entry to only verifiable participants, such as private enterprises. Entry to this network is possible only through an invitation or an authentic proposal that has to be validated. Confirmation is important for any participant to join the network. The confirmation is either by a set protocol implemented by the network or the network operator.
Where can you find a Private Blockchain?
Like NeuroTags, Ripple (XRP) and Hyperledger are popular instances of private blockchains.
- Hyperledger, an open-source project and global collaboration, encompasses leaders in supply chains, technology, finance, banking, etc.
- Ripple, another popular open-source protocol, paves the way forward for fast and cheap transactions. It uses its application RippleNet for connecting payment providers and banking systems. Ripple provides users with seamless experiences of receiving and sending money across the world.
Pros and Cons of a Private Blockchain
The primary benefits of using NeuroTags, a fast private blockchain are as follows:
A private blockchain returns transactions a lot faster than public blockchains. More transactions can be processed every second, thereby making the network faster and more effective for users. This is because of the presence of a smaller number of participants requiring authorization and network consensus in the blockchain. This, in turn, allows for more transactions to be processed in every block.
- Power to scale up – As few nodes are managing data and transactions in a private blockchain, there is potential for supporting and processing many more transactions.
- The decision-making processes are centralized in private blockchains. Therefore, the time taken for obtaining consensus is much less in comparison to public networks.
The drawbacks of a private blockchain:
- Manipulation data and hacking – Fewer nodes in a private blockchain make it easy for unreliable sources to take over the network.
- The credibility of nodes: Illegitimate nodes may affect the credibility of private networks and product authenticity verification. Proper verification and validation of authentic transactions can increase the trust of external users.
Main Differences Between Private and Public Blockchain
- A private blockchain offers transactional throughput and is lighter in comparison to a public blockchain. Its order of magnitude is also greater.
- Any individual or enterprise may add or verify data to a public blockchain. This is not possible in private blockchains (examples being Bitcoin and Ethereum) where only authorized entities are allowed to control the network and participate.
- The transactions and functions are decentralized in a public blockchain. On the contrary, private blockchains like Hyperledger and Ripple are quite centralized.
- Public blockchains use up more energy than private ones. They require higher electrical resources for functioning and receiving network consensus. On the other hand, lesser power and energy are consumed by private blockchains.
How are Organizations Leveraging Private Blockchains?
Providing the highest levels of protection and anonymity to protect the interests of individuals and organizations, anti-counterfeit blockchain systems provided by NeuroTags are certainly here to stay. The benefits of investing in a private blockchain like NeuroTags goes much beyond Bitcoin and Ethereum. Microsoft and JP Morgan have already stepped in a big way into the private blockchain arena.
The blockchain experts at NeuroTags can help you gain a comprehensive understanding of blockchain, which is a profound and complex field of technology. You may want to understand the use cases of different blockchains, such as blockchain anti-counterfeiting solutions in India to increase your company’s ROI.
Reach out to the blockchain experts at NeuroTags today!
