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Private blockchains have client nodes in a closed network or otherwise require some form of "API key" to be procured from the chain's owner to be able to connec
by decentralised 9y ago
Private blockchains have client nodes in a closed network or otherwise require some form of "API key" to be procured from the chain's owner to be able to connect.
In this case, because there is centralisation of trust, the 51% attack is not possible as there is only one mining node or, otherwise, only one "actor" can actually add blocks to the chain with as many nodes as needed. This is the case with Ripple, for instance.
- 6nf 9y agoSo why bother with a blockchain at all?
- decentralised 9y agoYou mean what are the benefits of a private blockchain? The trust model is different but all other capabilities are kept intact, so in the case of Ethereum you would still have the distributed singleton and immutable code that will always execute in the same way anywhere in the network, at any point in time. For established businesses entering the space, the privacy of closed network compensates the absence of "secrets" to some extent. It is also quite useful as a training ground because of course the technology is still in its infancy.
- 6nf 9y agoSo what's the use case?
- decentralised 9y agoStore and transfer of digital assets?
- 6nf 9y agoYou don't need a blockchain to do that
- decentralised 9y agoI answered above.
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- decentralised 9y agoI guess you can say it's not needed but then again what is? Some paper and a pen might solve your business problem but you shouldn't extrapolate that all business cases would be met with those capabilities. I do think there is plenty of room for private blockchains, but the use cases will be specific to the needs and constraints of the stakeholders.
- philh 9y ago> I guess you can say it's not needed but then again what is? There's a difference between "not needed" in the sense that I don't need a calculator when I have an abacus, and "not needed" in the sense that I don't need an abacus when I have a calculator. > the use cases will be specific to the needs and constraints of the stakeholders Yes, and people are asking for suggestions of what those use cases might be. If you can't think of any, that suggests we might be looking at an abacus, not a calculator.
- decentralised 9y agoI do think of many use cases for private blockchains, I simply did not presume to know what you meant before asking. - One case would be when a corporation wants to have 2500 TPS with finality in 3 seconds using the current ethereum software, unchanged. (scalability) - One case would be when a large-enough-corporation needs to share master data and reference data of business critical assets through different subsidiaries and third parties. (privacy) - Remember intranets? Sometimes decision makers simply want a watered down version of a great thing. (stability, control) If you care to include commercial DLT products, then the use cases will be different again.
- 6nf 9y agoAll of those are better done using other technologies. I don't see what the benefit is of shoehorning a blockchain in there. What's the killer app? Sorry to be annoying but I honestly don't see why an CIO would choose a blockchain over more traditional options for anything at all. I've been following Bitcoin and ETH for many years and I've been thinking about this a LOT and I just don't see it.
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