Blockchain’s Public Access: Boon or Bane?

Blockchain's Public Access Boon or Bane

With whole ledgers being open for all to see, are safety concerns around public blockchains well-founded?

A popular NFT marketplace, OpenSea, recently admitted to insider trading by one of their employees.

While the company had not revealed the name of the erring employee, individuals were able to utilize the platform’s public access blockchain ledger to ascertain the identity of the culprit. In this case, the technology was utilized for the cause of justice, but the question of whether public access technology is safe against malevolent intentions still stands. 

What is blockchain?

A blockchain is a digital ledger, or record, of transactions that stores information in a way that makes it extremely difficult, if not impossible, to alter the information stored in the ledger without leaving evidence of the change. Information in the blockchain can only be added and verified, not altered or deleted, thus creating unchangeable proof of the information being stored in the ledger. The technology, therefore, allows a secure way for individuals to complete transactions directly with each other without an intermediary like a government, bank or another third party to verify the authenticity or existence of the transaction. The use of blockchain technology is not just limited to cryptocurrency and can be used in different sectors, ranging from logistics to healthcare to energy.

Types of blockchain

There are two main types of blockchain systems, namely the public access and private access blockchain.

As the name suggests, a public access blockchain is decentralized and permissionless in nature, meaning that anyone can read, write and participate in the ledger.

A private access blockchain, on the other hand, is centralized and permissioned, meaning that the number of participants is pre-approved and restricted by the controlling authority. In a private blockchain, only the parties taking part in a transaction would have knowledge of it. 

Let’s assess the different features of these two types.

Public accessPrivate Access
Anyone can participate by adding and verifying dataOnly authorized entities can participate in and control the network 
Transactions per second (TPS) are low due to the massive number of participants.TPS are high in private blockchains, as the number of participants is limited.
Trustless in nature, meaning participants do not have to rely on a third party to operate.Participants must not trust each other, as the credibility of the network depends only on the authorized nodes and cannot be verified.
More secure due to a large number of nodes and active participation. This makes it difficult to attack and gain control of the network.Less secure and prone to security issues as a malevolent entity can breach the central node and threaten the entire network.
e.g. cryptocurrencies like Bitcoin and Ethereume.g. Hyperledger Fabric of Linux Foundation.

Advantages and disadvantages of the public access system

Public access networks are not maintained by any central authority, which makes it difficult for rules to be laid down. However, decentralized maintenance allows for robust user participation in the development of the network, because new changes to the network have to be voted on and vouched for by the users..

The anonymity of public access is a double-edged sword. While it helps maintain users’ safety, it also has the potential to make them vulnerable to infiltration by those who wish to change the system in order to make it vulnerable and exploit it at a later stage.

Complete transparency in the network does away with any discrepancies in the ledger, making it difficult for defaulting parties to conduct illegal transactions without being seen and reprimanded by the rest of the network. This eliminates the chance of fraudulent behavior as transactions can be traced back through every individual computer in the ledger. This makes the technology especially desirable in sectors with widespread networks vulnerable to embezzlement and corruption, like the Bunker industry.

As such, public access networks have their own sets of pros and cons like any piece of technology. It is, thus, essential to understand the requirements of one’s network before setting up a ledger.

If one’s enterprise needs a genuinely decentralized, completely transparent, immutable system to work with large communities, then a public blockchain would be a suitable option. However, if speed, security, cost-efficiency, confidential information and compliance are the main priorities of the ledger, then a private blockchain is the way to go.

Image courtesy Piqsels


Share on facebook
Share on twitter
Share on linkedin
Share on email


How Can Entrepreneurs Overcome Loneliness?

How Can Entrepreneurs Overcome Loneliness?

Starting your own business is a project that will take over most of your life. You are straying away from the typical 9-5 jobs that your friends and family may have. The sheer effort you have to make to get a business up and running will leave you feeling lonely. While it might seem almost expected to feel lonely during your startup journey, loneliness is a slippery slope to several health conditions.

8 Techniques to Get Readers Rolling Right into Your Content

8 Techniques to Get Readers Rolling Right into Your Content

We’ve all been there. We’ve spent hours crafting the perfect blog post, article or white paper, but no one is reading it. Why? It could be for a million reasons, but often it’s because we’re not doing enough to get people to come to our content. In this article, we’ll learn about the eight techniques that will help you draw in readers and get your content read!

Amazon vs Flipkart Who Will Win Festival Sale War in India

Amazon vs. Flipkart: Who Will Win the Big Festival Sale War in India?

Amazon India and Flipkart, the two biggest ecommerce giants in India, have always been in a neck-to-neck competition for supremacy in the country. There is no better occasion to showcase their strength and take advantage of people’s shopping mood than during the Indian festive season, which begins in late September featuring various festivals, like Durga Pooja, Dussehra and Diwali.

Reviewing Top AI Boyfriends on Google Play Store

Anima vs. Replika: Reviewing Top AI Boyfriends on Google Play Store

Finding your perfect match can be a long and tedious process. You can go on date after date and still have a long way to go before you find your soulmate. In the meantime, you can curb your loneliness by speaking to an artificial intelligence (AI) chatbot.There are dozens of AI chatbots on the market today that give you the experience of having someone to vent your issues to and discuss your daily lives with.


What Is “Shrinkflation” and Why Opting For It Isn’t Companies’ Only Choice

You might have noticed grocery prices are soaring, or your usual go-to pack of chips is shrinking in size—all thanks to massive inflation. As of August 2022, the U.S. consumer price index (CPI), which measures the change in consumer prices for a specific set of goods over a period, has increased by 8.3% (year-on-year). Although it has gone down slightly from 8.6% in May, the highest it has ever been since 1981, it remains high and worrying.