The more companies adopt blockchain the less decentralized it becomes: for some of them the transparent concept is unacceptable. A good solution would be a private blockchain controlled by a few people which, however, breaks the initial idea of Blockchain.
Consequently, the technology separates into 3 types: the classical public blockchain where transactions are carried out openly out of anyone’s control, consortium blockchain where transactions are agreed upon certain nodes and the last one – fully private centralized blockchain. Specialists foresee the blurring of borders between those three in the nearest future since each of them has advantages that together create an efficient system
The distinctive feature of private blockchain is the limited access to the system. In some way, this concept kills equality and harms the reputation go Blockchain itself making it seem inaccessible.
However, here are the benefits of the solution:
– the risk of 51% attack decreases
– transactions cost decreases and their speed, instead, increases
– if an error occurs, the transaction can be canceled
– the private blockchain is simply cheaper to use
– the control over the system allows to create order and recognize mistakes if they are done
The private blockchain is opposed by many but brings new opportunities for business and makes the technology suitable for a broader list of industries.