Public ,Private Blockchain and cryptoeconomic properties

In this session we will be discussing about the Public and Private Blockchain , cryptoeconomic properties of bitcoin in simple steps

Public Blockchain :-

a.Its a Decentralized platform

b.Anyone can read and send transactions

c.The valid transactions are included in the Ledger.

d.Public blockchains are secured by cryptoeconomics.

#Cryptoeconomics refers to the combinations of cryptography, computer networks and game theory which provide secure systems exhibiting some set of economic dis/incentives.

1.Ethereum, Provider of a decentralized platform and programming language that helps running smart contracts and allows developers to publish distributed applications.

2.Blockstream,Provider of blockchain technology, focused on extending capabilities of cryptography and distributed systems.Their vision is to form an ecosystem for solving problems in financial systems related to fraud, counterfeiting, accountability and transparency.

3.Factom,Have developed underlying blockchain data infrastructure for an open source platform called Factom technology.

Private Blockchain:-

a.In this write permissions are kept centralized to one organization.

b.The access and permissions are tightly controlled.

c.Rights to modify are restricted to the central authority.

d.The proprietary system built on private blockchain will reduce the transactional cost and increase validation efficiency.

1.Eris Industries,Provider of multi-network blockchain client. It is a controllable, smart contract-enabled, proof-of-stake based blockchain design.

2.Blockstack,Developers can use APIs by blockstack.js to authenticate the user, fetching and storing application data.

3.Multichain,Provides an open source distributed database for financial transactions.

4.ChainInc,Similar to Multichain, it’s an enterprise grade blockchain infrastructure that enables organizations to build better financial services from the ground up.

Cryptoeconomic properties of Bitcoin:-

a.It is based on the blockchain technology where each block contains the hash of the previous block and forms a continuous chain.

b.Each block will include transactions.

c.The blocks will have a particular state which is subject to change according to transactions.

Eg. if X has 70 bitcoins and wants to send 20 bitcoins to Y. Then The new state should show that X has 50 bitcoins left and Y has 20 new bitcoins.

d.The blockchain must be immutable. It should be possible to add new blocks but the old blocks can’t be tampered with.

e.Only valid transactions should be allowed.

f.The blockchain should be downloadable and anyone anywhere can easily access and check a particular transaction.

g.Transactions could be added quickly to the blockchain if a sufficiently high transaction fee is paid.

Please feel free to share your feedback, comments for any addition or correction :)

Tomorrow I will be writing the blog on Blockchain Architecture.