Public Blockchain Definition
A public blockchain, also known as a decentralized blockchain, is an openly accessible and participative type of blockchain network where anyone can join, participate, execute transactions, and validate blocks. It is completely transparent, and its records are open to public view. Famous examples include Bitcoin and Ethereum.
Public Blockchain Key Points
- Public blockchains are open to everyone and do not require an invitation to participate.
- Each participant in a public blockchain has equal rights to view and add transactions.
- The records on a public blockchain are immutable and completely transparent.
- Public blockchains utilize consensus mechanisms like Proof-of-Work or Proof-of-Stake for transaction validation.
- Bitcoin, Ethereum, and Litecoin are well-known public blockchains.
What is a Public Blockchain?
A public blockchain is an open network operating on the principle of decentralization. Decentralization ensures that the authority and control of the network are distributed among its participants, eliminating the need for a central authority.
Where is a Public Blockchain used?
Public blockchains find use in various applications where transparency, immutability, and decentralization are essential. They are notably used to underpin cryptocurrencies like Bitcoin and Ethereum, allowing users globally to send and receive digital assets securely.
When did Public Blockchain come into existence?
The notion of public blockchain was first introduced with the advent of Bitcoin in 2009. Since then, many other public blockchains such as Ethereum, Litecoin, and more have been developed, each offering unique features and capabilities.
Why is a Public Blockchain important?
The importance of a public blockchain lies in its key features – transparency, immutability, and security. The transparency provides all participants with full access to the entire ledger, catering to the need for trustworthiness in the network. Immutability ensures no record can be modified once it’s been validated, thus preventing fraud. Security, on the other hand, minimizes the risk of network attacks and ensures the protection of the blockchain ecosystem.
Who can use Public Blockchain?
Anyone with an internet connection can access and participate in a public blockchain. Whether you’re an individual, a business, or a government entity – you can use a public blockchain to execute and validate transactions, or even create and run your own applications. However, the level of technical knowledge required can vary greatly depending on what you want to do on the network.
How does a Public Blockchain work?
In operation, a public blockchain relies on ‘nodes’ or individual computers that run the blockchain’s software. These machines work together to confirm and record new transactions in ‘blocks’. Each block is then added to a long ‘chain’ of previous transactions, ensuring the blockchain’s immutability, as altering one block would require changing every blockchain following it – a computationally impossible task. Transactions are validated using consensus mechanisms, the most common being Proof-of-Work or Proof-of-Stake.
