Private Blockchain Characteristics And Benefits Training Ppt

Slide 1

This slide illustrates the concept of private blockchain technology. It also provides information regarding the introduction, and examples of the private blockchain.

Slide 2

This slide illustrates the characteristics of private blockchain technology such as access, high transaction rate, security, and consensus algorithms.

Instructor’s notes:

The different characteristics of private blockchain are as follows:

Access: Private blockchains are permissioned blockchains. Read and write can be done only by permissioned nodes

Higher Transaction Rate: In a private blockchain, the transaction rate is higher (per second) per transaction than in a public blockchain

Security:

• A private blockchain is more susceptible to hacking, and data breaches
• It is easy for imperfect players to put the entire blockchain network at risk. Hence, it is less secure

Consensus Algorithms: Consensus can be accomplished through a process called a selective endorsement. This is based on the idea that network participants have clearance to be there and that each participant interested in a transaction can confirm it

Slide 3

This slide illustrates the characteristics of private blockchain technology such as privacy, high efficiency, and better scalability.

Instructor’s Notes:

The different characteristics of private blockchain are as follows:

Privacy:

• In a private blockchain, the primary focus is on the privacy of all individuals
• A private blockchain is more centralized, so it is easy to maintain the confidentiality of the individuals

High Level of Efficiency:

• The efficiency of the private blockchain depends upon the number of nodes in the blockchain
• In a private blockchain, only limited pre-authorized nodes are added to the system, therefore the system works with better efficiency and speed

Energy Efficient: In a private blockchain, the transaction of nodes is lower due to fewer participants, leading to minimal energy consumption

Better Scalability:

• Since nodes and services can be added on-demand, it is far easier to achieve scalability in the private blockchain
• Due to limited nodes, the system does not slow down which results in reduced fees and faster transactions, leading to greater scalability

Slide 4

This slide illustrates the demerits of private blockchain technology, such as trust, high energy consumption and limited security.

Instructor’s Notes:

The different disadvantages of private blockchain are as follows:

Trust:

• Trust is a substantial issue for a private blockchain
• The credibility of a private blockchain network depends on the credibility of the authorized nodes
• The nodes have to be trustworthy as they verify and validate transactions
• The validity of records can’t be independently verified in a private blockchain

Security:

• Security is another concern with a private blockchain 
• Due to fewer nodes, it is easier for hackers to control the network
• In private blockchains, the risk of being hacked or having data manipulated is higher