This Network Connects Public and Private Blockchains
Gavin Wood, founder of Ethcore, recently renamed to Parity Technologies Ltd, has published a paper presenting Polkadot, a new network that aims to provide interoperability between private and public blockchains. The concept is somewhat similar to sidechains, but sidechains “are pretty much limited to token transfers for now,” says Peter Czaban from Ethcore. On the other hand, “Polkadot handles canonicaliztion of the parachains and enables rich communication” – he added. Moreover, according to the paper, each sidechain requires its own security while Polkadot aims to provide “pooled....
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Vitalik Buterin is a programmer and writer. He founded Ethereum, a decentralized web 3.0 publishing platform, for which he won the World Technology Award in 2014. In this article, he explores the differences between public and private blockchains and the pros and cons of both. Over the last year, the concept of 'private blockchains' has become very popular in the broader blockchain technology discussion. Essentially, instead of having a fully public and uncontrolled network and state machine secured by cryptoeconomics (eg proof-of-work, proof-of-stake), it is also possible to create a....
Many people argue that private blockchains, run by private firms, are useless, since they make users dependent upon a third party ‒ the firm managing the blockchain. Many believe that private blockchains currently being considered are not blockchains, but rather, distributed ledger technology which has already existed. Others believe private blockchains could provide solutions to many financial enterprise problems that Bitcoin does not, such as abiding by regulations such as the Health Insurance Portability and Accountability Act (HIPAA), anti-money laundering (AML) and know-your-customer....
Investor Fred Wilson, co-founder of Union Square Ventures, thinks banks are missing the most important opportunity bitcoin offers by building private blockchains. Speaking on a panel with Nathaniel Popper of The New York Times at the CB Insight “Future of Fintech,” he said the transformative value of virtual currency will be on a public blockchain, as reported by the Observer. Private blockchains copy the distributed approach of public blockchains but hide it inside the servers that their creators have given permission to maintain a copy. Private Blockchains? Think Compuserve. Wilson, a....
Private and public blockchains, normally siloed both technologically and culturally, could become more intertwined if a new effort by bitcoin startup Blockstream gets off the ground. The venture-backed firm is best known for iterating on top of the open-source bitcoin protocol with projects such as the Lightning Network and sidechains, the latter of which aims to allow users to send assets back and forth between blockchains 'pegged' to bitcoin. At the same time, the startup has been working on more enterprise-oriented projects, perhaps biting into the recent buzz and experimentation with....
Blockchain technology is rapidly transforming the world and the web as we know it. Since the technology was first unveiled, there has been a substantial increase in the use of both public and private blockchains across an array of industries. In fact, government organizations, too, are starting to adopt blockchain for better security, traceability, and […]