Crypto Academy Beginners Course Task 3: Bitcoin, Cryptocurrencies, Public chains
This time I want to do 3 of the basic Crypto Academy homework assignments, and I chose question number 3 out of 3 questions that we can do.
(3) What Is Public Chain and What will be the Advantages and Disadvantages of Public Chain?
As the name suggests, a public chain is a public blockchain that is free for anyone to access. People can join the public blockchain network by becoming miners, investors, validators, delegates, etc. The public chain is a transparent blockchain that makes it possible to see all data such as transaction data and others, and anyone can access it to get real-time information.
In the public blockchain network, all the users have the same rights, we will not find any privileges for an individual in the public blockchain. The public blockchain also offers extra security compared to other blockchains, and everyone can also view the ledger, thus maintaining transparency at all times.
The public blockchain is decentralized so it is not possible to change the data, hack it or anything else. This means that a public blockchain is a system that runs on its own without anyone's help and cannot be stopped, manipulated, and so on. People on the network will store the same data as everyone else.
In a public blockchain there are no rules for nodes to follow and there is no need to trust anyone in managing the assets we have mined or purchased. Most public blockchains use the PoW consensus algorithm, but recently many public blockchains have started migrating to the PoS consensus algorithm because it is more energy efficient and environmentally friendly.
Public blockchains also have several distinct characteristics that distinguish them from other blockchains, including:
- High Security
- Open Environment
- Anonymous
- No Regulations
In public blockchains there are several advantages and disadvantages, this is common because it will not be able to produce products, systems, or whatever, without any disadvantages or advantages. So here are some of the advantages and disadvantages of public blockchains.
1. True Decentralization
The public chain is completely decentralized because everyone has the same rights and also a copy of the ledger (blockchain), and it is also fully distributed. Because the public chain is decentralized so that all network maintenance is on the nodes, not on a central entity. Thanks to the help of the consensus algorithm, the public chain will update the blockchain as well as the block.
2. Full Transparency
Another advantage of public chains is transparency, that is, everyone can see the ledger, and also see all the data, etc. So it is not possible to manipulate assets.
3. Immutability
The public chain network cannot be changed because it is Immutability. When a block goes into the chain, then we will not be able to change and also can't delete it forever. All transaction data will also be copied by the node so it is not possible to change it.
4. Full User Empowerment
If most companies or other networks require users to follow rules and regulations, then this is not the case in public chain networks because here all users are empowered and given the right and freedom to do whatever they want. So we can download nodes or recopy the blockchain without being constrained by rules and regulations.
1. Anonymity
Although we see it as an advantage because the identity of the trading party remains anonymous, it can be a big problem if misused. People can transact freely and anonymously, this can be used for crimes such as dealing in drugs, weapons or the like.
2. The consensus mechanism requires a lot of energy
Most public chains adopt the Proof-of-Work (PoW) consensus algorithm, which requires expensive computing tools and also requires high electricity voltage, which is certainly not good for the environment.
3. Block size is limited/Lack of scalability
The block sizes of public blockchains are very small and limited to supporting thousands of transactions per day, so processing these transactions takes quite a long time.
4. Unable to Recover
Immutability is seen as an advantage of the public chain, but this is also a drawback because all data entered into the general ledger cannot be changed. So we will not be able to recover the lost private key, and mistransmitting of assets is also not tolerated in the public chain.
Cc:
Professor:
Hello @agus-kamil,
Thank you for taking interest in the 3rd Task of the Beginners’ class. Your grades are as follows:
Feedback and Suggestions
Thanks again as we anticipate your participation in the next class.