Private vs. Public Blockchains For Enterprise Business Solutions

[Kathleen Martin]

• Private blockchains are typically more efficient than public, however, private blockchains usually substitute speed for decentralization.
• Public blockchain are widely adopted due to the network effect and the ability to instantly provide goods or services to anyone connected to the public infrastructure
• Hybrid blockchains are advantageous as they allow users to control the privacy policies of data while reducing the impact on scalability.
• A a well-designed multichain privacy framework will allow developers to keep most of their existing codebases intact and with a little elbow grease and modifications, identify the privacy components and then bridge these via Liminal  

Blockchain has become a bit of a buzzword in the last few years and for a good reason. This technology has notable ramifications for how a wide variety of industries conduct business. Already there are dozens of examples of companies utilizing blockchain in industries ranging from financial services to supply chain management and energy distribution. However, not all blockchains are created equal; there are some important differences between public blockchains that anyone can use and private ones controlled internally by an organization. For most businesses, there are pros and cons for going either route, but it’s increasingly looking like needing to choose may soon be a thing of the past. In this article, we’ll explore the benefits of using blockchain for business solutions, describing the differences between public and private versions of this technology in practice. We’ll also talk about a new type of chain — a hybrid of private and public chains which takes the benefits of both to create a truly versatile platform with no compromises. Lastly, we’ll take a look at the actual use cases for hybrid blockchains and how they could be deployed in real-world situations.
The case for blockchain
Over the last decade, more and more businesses have begun to explore the opportunities afforded by blockchain technology. Thanks to the overall speed and low transaction costs, not to mention the security and immutability, these networks provide multiple benefits in the areas of data management, financial tracking, value transfers, and much more. This is why companies like BMW are already implementing blockchain for a variety of business solutions, including digital car passports and supply chain management.
However, not all blockchains are created equal. Businesses have always required a reasonable degree of privacy as well as control over their networks. Since the popularisation of the internet, and the advance of eCommerce, it’s been essential that companies protect their systems from outside attackers, both to preserve their workflow but also any sensitive information they might be storing. Hence, as blockchain technology becomes integrated into the modern digital workplace, it is only logical that private networks are often seen as preferable for many organizations. 
This is no big surprise — especially given that some of the main selling points of blockchain include a completely transparent ledger containing all data as well as the ability to move value around. And it’s clear why a business wouldn’t want just anyone to be able to access their internal network. This way, the company gets many of the benefits of the novel tech but can remain opaque to most of the world.
Continue reading: https://www.infoq.com/articles/enterprise-private-public-blockchains/