What Is a Blockchain Private Chain? One Article Helps You Understand

By: DaDa

Compared with a public chain, the biggest difference of a private chain is that it is only open to a single individual or entity. Therefore, for a private blockchain, the write permission is in the hands of only one organization. The read permission is either open to the outside, or has been restricted to an arbitrary degree.

Features of a private blockchain

(1)Transaction speed is extremely fast

The transaction speed of a private chain can be faster than any other blockchain, even approaching the speed of a conventional database that is not a blockchain at all. This is because even a small number of nodes have a very high degree of trust, and it is not necessary for every node to verify a transaction.

(2)Better protection for privacy

A private chain makes the data privacy policy on that blockchain completely consistent, as if it were in another database, with no need to handle access permissions and use all the old methods, but at least it can be said that this data will not be publicly obtainable by anyone with a network connection.

(3)Transaction costs are greatly reduced or even zero

On a private chain, transactions can be carried out completely free of charge, or at least very cheaply. If a single entity institution controls and processes all transactions, then they no longer need to charge fees for the work.

However, even if the processing of transactions is carried out by multiple entity institutions, such as competing banks, further for example, for the same reason, they can process transactions so quickly, so the fees are still very small; this does not require complete agreement between nodes, so very few nodes need to work for any single transaction.

(4)Helps protect their basic products from being destroyed

It is precisely this that enables banks and other financial institutions to readily accept private chains in the current environment; banks and governments have a vested interest in watching over their products, and national fiat currencies used for cross-border trade are still valuable.

Applications of private blockchains

The Linux Foundation

The Linux Foundation is a non-profit consortium whose purpose is to coordinate and promote the development of the Linux system, as well as to publicize, protect and standardize Linux. The organization was established in 2007 by the union of the Open Source Development Labs (OSDL) and the Free Standards Group (FSG), among which MeeGo is a Linux operating system under the management of the Linux Foundation.

Hyperledger

Hyperledger is an open-source project launched by the Linux Foundation in 2015 to advance blockchain digital technology and transaction verification. Its joining members include: ABN AMRO, Accenture and more than a dozen different interest entities. The goal is for members to work together to build an open platform, satisfy various user cases from multiple different industries, and simplify business processes. Due to the characteristics of peer-to-peer networks, distributed ledger technology is completely shared, transparent and decentralized, so it is very suitable for applications in the financial industry, as well as countless other industries such as manufacturing, banking, insurance, and the Internet of Things. By creating public standards for distributed ledgers, it realizes the exchange of value in virtual and digital forms, such as asset contracts, energy trading, marriage certificates, which can be tracked and traded safely, efficiently and at low cost.

R3CEV

R3CEV is a blockchain startup headquartered in New York. The R3 blockchain consortium it initiated has so far attracted the participation of 42 giant banks, including Wells Fargo, Bank of America, Bank of New York Mellon, Citibank, Commerzbank, Deutsche Bank, HSBC, Mitsubishi UFJ Financial Group, Morgan Stanley, National Australia Bank, Royal Bank of Canada, Skandinaviska Enskilda Banken (SEB) of Sweden, Societe Generale of France, and others.

The above is the introduction to "private chains" that DaDa has brought to everyone. Please also look forward to even more exciting content next.