What is a Public Blockchain? | A Beginner's Guide

Since everything is digitized, blockchain technology has taken the world by storm. With solid transparency, immutability, and decentralization, the created databases are secure to use. As there is no human intervention, transactions occur tamper-free. But what is a public blockchain? What does it stand for? What are its uses?

If you’re interested to learn about the public blockchain, its applications, and its advantages then make sure that you go through the blog till the end.

What is meant by Public Blockchain?

A public blockchain is one of the three types (public, private, and federated) of blockchains. As understood by the name itself, the public blockchain can be used openly by anyone across the globe. All you need is a stable Internet connection and you’re good to go.

You need to validate the blocks followed by which you can perform online transactions using a public blockchain. It is a type of blockchain for anyone and everyone, thus, making it a 100% decentralized technology.

The key characteristics of public blockchain are mentioned as follows:

a. The technology follows a decentralized consensus mechanism, i.e., it keeps all the nodes (computers) in a network on the same page. Thus, there are no data discrepancies.

b. The technology is open to all. No individual controls the usage of public blockchains.

c. A user remains autonomous while accessing the public blockchain. This cuts down any possibility of data breaches.

d. Because of the anonymity provided, no individual can track your transactions.

Note: If you’re curious to understand the difference between public and private blockchain, you can check it out here.

Any real-world example?

The concept of public blockchain can easily be understood with the help of a real-world use case. Digital cryptocurrencies such as Ethereum, Dogecoin, Bitcoin, etc., are great examples of public blockchain entities. There is no group that controls/regulates the use of such cryptocurrencies. Anyone can make use of these currencies as it is 100% decentralized.

What are the applications of Public Blockchain?

No industry is left unmarked by the infinite magic of blockchain technology. A wide spectrum of industries ranging from healthcare, and tech to retail take complete advantage of the applications of public blockchain.

Some of the significant applications of Public Blockchain are mentioned as follows:

1. Public sector: The government is indeed interested in the potential of blockchain technology to transform the world. All the confidential transactions that occur across the globe in the public sector are insecure due to their centralized nature. Applying public blockchain can make all the systems decentralized, thus, making public transactions such as land-buying secure than ever.

2. Cybersecurity: Over 33 billion accounts are estimated to by cyber cyberattacked by the end of 2023. This brings in the mandatory need for regulating Identity and Access Management (IAM). With the use of Distributed Ledger Technology (DLT), networks can register and maintain identity records of citizens. This allows networks to verify identities when a user grants access.

3. Cryptocurrency: From Ethereum to Bitcoin, cryptocurrency is a 100% decentralized digital commodity. Thanks to the public blockchain tech. This gives freedom to individuals to securely use the digitized currency.

4. Digital Marketing: Blockchain technology can be harnessed in managing, monitoring, sharing, and securing customer data online. By creating encrypted blocks for each customer, the information can be shared securely without the danger of data breaches.

5. Financial Services: Online transactions can be made more secure, encrypted, and faster by deploying public blockchain technology. This technology allows real-time transactions, transaction record-keeping, better transaction tracing, and much more. This technology eliminates the need for centralized bank transactions.

6. Healthcare: The healthcare sector is also benefitting from the unlimited benefits of blockchain tech. It allows transactions to be more secure, fast, and easy to maintain. The process of record-keeping, and exchanging is also made more efficient, and quick.

What are the advantages of Public Blockchain?

As blockchain technology is emerging explosively, there are numerous benefits of the technology. The advantages of public blockchain are mentioned below:

1. Decentralized technology: No individual can control or regulate the public blockchain technology since it is decentralized. A decentralized public blockchain consists of a shared network of nodes that keep the data/transactions secure.

2. 100% secure: The transaction history stored in a series of blocks cannot be modified. This makes it impossible for the cyber attackers to perform malicious activities. Thus, the public blockchain technology is completely secure.

3. Immutable data: The blocks that are once created for a specific transaction cannot be modified. This helps in maintaining data integrity and transparency.

4. Top-level Transparency: Since all the transactions are recorded, tracked, and verified in real-time, the public blockchain technology offers the highest level of transparency. The technology is decentralized and no one can alter the blocks in the blockchain.

Concluding thoughts

Blockchain technology has infiltrated almost every other sector across the globe because of its ability to simplify tasks, boost efficiency, enhance security and transparency, and much more. There are many blockchain public companies such as Nvidia, IBM, Microsoft, COIN, etc., that make use of the public blockchain technology. This decentralized technology is the future to make the world a safer space.

So far, you learned what is public blockchain technology, the applications of public blockchain, and the advantages of using this technology. I hope this guide helps you to understand the concept of a public blockchain without the use of jargons. Happy learning!