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Public or Private Blockchains – Which One Is Right for You?

Public or Private Blockchains – Which One Is Right for You?

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SUMMARY

For supply chain companies that are working on new blockchain projects, one of the most difficult decisions usually is whether to go for a public or private ledger and what permission models.

This document reviews relevant considerations in making the decision between public and private blockchains offering arguments for and against each type of blockchain.

Some aspects to consider before making this decision, the research says, is to evaluate how many partners are included or what sorts of products and materials are involved. Other key elements are to review what key customers and partners are already doing and if standards organizations and government bodies have their requirements that have to be met for compliance reasons.

Regarding the differences between public and private blockchains the study explains that in public blockchains, anyone can take part in the ledger. In a private blockchain, only chosen parties can access and make changes to the distributed ledger. 

Performance, or the speed with which transactions are written to the blockchain, is another important consideration. In public blockchains are usually slowed compared to private ones when it comes to performance or the speed with which transactions are written to the blockchain. On the other hand, public blockchains might not be appropriate when users need to store large amounts of data on the blockchain.

Public blockchains are considered more interoperable because they are based on a consensus about how networks should function while on the contrary, private blockchains rely on different parties within a system. Regarding up front costs, these tend to be higher in private blockchains, while public blockchains would usually require a much lower upfront cost to launch a new project.

As for regulations, the document states that private blockchains tend to be more appropriate to working towards a GDPR‑compliant blockchain solution. Regarding governance, public blockchains are often governed by all – this can lead to decisions that go against the interests of supply chain operators. In private chains, on the contrary, interests are more aligned and therefore governance is often less of a concern.

 

OUTLINE

Introduction

Blockchain

Supply chain landscape

Blockchain structure

Conclusion

Appendix

DETAILS

Overview

Researchfinder Rating
5 out of 5 stars
Title
Public or Private Blockchains – Which One Is Right for You?
Region
Global
Published
Aug. 2, 2019
Publisher
WEF
Author(s)
Hanns Christian Hanebeck, Nadia Hewett, Peter A. McKay
Price
FREE
Language
ENGLISH

Content

Number of Pages
24
Number of Tables
0
Number of Exhibits
6
Topics
blockchain
Tags
bitcoin, blockchain, data protection, DLT, global, open data, private blockchains, public blockchains, security, WEF, World Economic Forum
Companies mentioned
SAP, Oracle, Truckl, dexFreight, Sovrin, Dispatch, MTI
Author(s)
Hanns Christian Hanebeck, Nadia Hewett, Peter A. McKay
Methodology
This report is based on research and in-depth interviews with blockchain users in diverse industries.
EVALUATION

This report stands out for its quality content and great boxes with explanations of key concepts and terms.

Positives:

  • References
  • Terminology
  • Clear conclusions
  • Understandable language
  • Case studies

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