As cryptocurrency continues to enter the mainstream, many businesses and employers are trying to understand how to implement blockchain technology at their organizations – and one of the most important choices they’ll have to make at outset is whether to proceed with a public or private blockchain. Whether you are contemplating using a blockchain to strengthen security, eliminate inefficiencies, retool your recruiting and onboarding processes, or compensate employees, there are pros and cons to each choice. Each organization will need to assess their own business needs before making a selection. This Insight will review the prime features of public and private blockchains and provide three considerations to keep in mind before making a choice.
Primer: What is a Blockchain?
As a quick refresher, a blockchain is a distributed (shared) digital ledger that contains an immutable historical record – or chain – of all transactions that have occurred on that blockchain’s network. A distributed ledger means that there are multiple versions of the same data that are stored in different places and connected through the network.
A blockchain stores information together in “blocks” of information. When a block reaches its storage capacity, it is closed and linked via cryptography to the prior block and each block is chained in chronological order. This creates the chain of data known as the “blockchain.” You can dive deeper into this concept by reading our detailed FAQs here.
The most common reasons businesses and employers might consider using blockchain technology include enhancing security for financial data and sensitive personal employee information, improving the recruiting and onboarding processes, streamlining payroll, or increasing the efficiency and reliability of current audit processes. And the two most common blockchains are public and private blockchains.
Public Blockchains
A public blockchain, such as Bitcoin’s blockchain, is “permissionless.” This means that the blockchain is visible to anyone and open to public participation. Key features of a public blockchain include:
Primer: What is a Blockchain?
As a quick refresher, a blockchain is a distributed (shared) digital ledger that contains an immutable historical record – or chain – of all transactions that have occurred on that blockchain’s network. A distributed ledger means that there are multiple versions of the same data that are stored in different places and connected through the network.
A blockchain stores information together in “blocks” of information. When a block reaches its storage capacity, it is closed and linked via cryptography to the prior block and each block is chained in chronological order. This creates the chain of data known as the “blockchain.” You can dive deeper into this concept by reading our detailed FAQs here.
The most common reasons businesses and employers might consider using blockchain technology include enhancing security for financial data and sensitive personal employee information, improving the recruiting and onboarding processes, streamlining payroll, or increasing the efficiency and reliability of current audit processes. And the two most common blockchains are public and private blockchains.
Public Blockchains
A public blockchain, such as Bitcoin’s blockchain, is “permissionless.” This means that the blockchain is visible to anyone and open to public participation. Key features of a public blockchain include:
- Access: Public blockchains are decentralized, which means that anyone can join and participate in the blockchain network. Similarly, anyone can read, write, and see the activities on the public network. A public blockchain does not have a single entity that controls the network.
