The fulcrum of the ‘new internet’ is blockchain technology. Every ‘block’ is a portion of a database that stores data at a granular level.
There are two sorts of blockchain: public and private. While public blockchains are decentralized peer-to-peer networks, private blockchains have a centralized authority that controls the ledger: The critical distinction is in the level of access granted to users.
Public blockchains, also known as permissionless blockchains, are entirely open and adhere to the decentralization concept to the letter.
Public blockchains include Bitcoin and Ethereum, for example. Anyone in the network can contribute blocks to the chain.
Unlike private blockchains, where the identities of the people participating in the transaction are not kept hidden, public blockchains are mainly anonymous.
Private blockchains like Ripple and Hyperledger are faster because they have a smaller user base, which means it takes less time to achieve a consensus to validate a transaction. Private blockchains are scalable and can process thousands of transactions per second.
A private blockchain uses a centralized network to speed up transaction times. The issue of trust is also raised by a centralized network, which is resolved with a public blockchain.
On private networks, the authenticity of a transaction cannot be confirmed. Therefore it is dependent on the trustworthiness of the approved nodes.