What Is A Private Blockchain?
A private blockchain is a blockchain technology that is not open to members of the public. The network is accessible only by the organization that created it and those it grants permission to use it.
A blockchain is a system of recording information. This type of system makes it difficult or impossible to change, hack, or cheat the system. Essentially, it is a time-stamped digital ledger that duplicates and distributes a series of immutable records of data across the entire network of computers.
Although the first blockchain conceptualized in 2008 by Satoshi Nakamoto to record the transaction of Bitcoin was public, today, some organizations operate the technology within closed parameters due to privacy concerns.
A private blockchain is a blockchain network with restrictions on who can access it. It offers organizations the highest level of privacy. Typically, one or more entities control the system, and only they know what transactions go on.
It contrasts a public blockchain that allows anyone to join, read, or contribute to the network. Usually, organizations develop them for the internal networking system of a company and make them accessible only to employees within the organization.
A private blockchain offers organizations much-needed privacy, which is not available on a public blockchain. Organizations do not need to worry about their competition gaining access to their trade secrets with privacy and security in place. Private blockchains are being used more and more by organizations and companies around the world
Private Blockchain Example
Hyperledger Fabric is an example of a private blockchain solution. The network allows organizations to develop applications and industry solutions. For instance, Walmart, an American multinational retail company, uses Hyperledger Fabric to trace the origins of the products they sell. Their suppliers upload certificates of authenticity to the ledger, which enables the company to trace products back to a supplier within seconds.« Back to Glossary Index