What is Public Key, Private Key, Alliance Key? Crypto newbies to know!

The three main categories of blockchain

Blockchain technology has skyrocketed in recent years, with more and more “chains” emerging since the advent of Bitcoin, with different chains having their own unique use cases and technological innovations. When we classify chains, the most common classifications are public chain, private chain, affiliate chain. All three types of blockchain have their advantages and disadvantages, and we often use the chain's transaction speed (TPS, Transaction per second), degree of decentralization, number of nodes, and whether it is controlled by a particular entity as items of comparison. Here are the features and applications of these three types of blockchains for beginners.

Introduction and Application of Link Chain

A blockchain refers to a completely decentralized blockchain that anyone can use and participate in certification and mining. The greatest feature of the public chain is complete transparency, all transactions are publicly recorded, each node has the same authority, and there is no need for management and supervision by any authoritative body. The advantages of a public chain are as follows:

• High level of anonymity
• Highly Decentralized
• Can be used by anyone
• Anti-Censorship, Imperishable

However, the link also has a number of inconveniences in terms of use:

• Slower transaction speed
• Higher transaction costs (high gas fee)
• Poor scalability

Most of the blockchain services we use today are cross-links, such as Bitcoin network, Ethernet, etc., which are transactional certified by miners from all over the world, remain highly decentralized and non-exclusive, becoming the most used blockchain type.

Introduction and Application of Private Chain

Private chain refers to a blockchain that only allows specific nodes to participate, that is, the participants of the private chain are authorized institutions or individuals. Compared to public chains, private chains are more focused on privacy protection and efficiency and have greater scalability. The application scenarios for private chains are mainly enterprise-class blockchains, which are typically used for intra-enterprise transactions and data sharing, and can also be used for cross-enterprise data sharing and transactions. The advantages of private chains are as follows:

• HIGH LEVEL OF PRIVACY TO ENSURE COMPANY CONFIDENTIALITY DOES NOT FLOW
• High controllability for easy maintenance
• Transactions are fast, transfer data without waiting

Private chains also have the following disadvantages:

• Highly centralized, can cause network paralysis if attacked by hackers
• Security is not as high as a public chain

Private chains are not a common option in our everyday blockchain usage scenario, and the more famous private chain is the one published by financial giant Morgan General Quorum , aimed at tokenization (Tokenization) of many assets in the financial system, solving many of the problems of traditional finance.

Introduction and Application of Affiliate Chain

An affiliate chain is a form of blockchain between a public chain and a private chain. The alliance chain also consists of multiple nodes, but node participation requires authorization, and these nodes are jointly managed and controlled by multiple agencies or enterprises. The application scene of the alliance chain is mainly the sharing of data between organizations or enterprises, such as mutual transfers and verification between banking businesses, logistics and production processes on the supply chain, etc. Affiliated chains are more focused on shared governance and coordination than public and private chains, and can also meet the need for collaboration between different organizations. The advantages of the affiliate chain are as follows:

• • High controllability and easy maintenance
  • Scalable and easy to develop
  • Fast Transaction
  • Privacy-minded to ensure secure data transfer

Disadvantages of the alliance chain:

• • Not completely decentralized and vulnerable to attack

Because the alliance chain is often used to transfer information between enterprises, it is less common for end users to reach it. The most common affiliate chains are:Hyperledger FabricIn recent years, many financial institutions in Taiwan have also been developing alliance chains to introduce blockchain technology into Taiwan's financial system so that customers can enjoy a faster, safer and more secure trading experience, such as:Insurance Claims Alliance ChainTo effectively connect data from many insurers across Taiwan, such as Fubon, Cathay Life.

Comparison of the three types of blockchains

Overall, blockchain, private chain, and affiliate chain all have their own advantages and applicable scenarios. In the actual application, it is necessary to choose different forms of blockchain according to the specific situation. FOR EXAMPLE, A LINK CHAIN IS A BETTER OPTION FOR A TRANSPARENT AND DECENTRALIZED SCENARIO; PRIVATE CHAINS CAN BE CONSIDERED FOR INTRA-ENTERPRISE TRANSACTIONS AND DATA SHARING; AND AN AFFILIATE CHAIN IS A BETTER OPTION FOR A SCENARIO WHERE RESOURCES AND COLLABORATION ARE NEEDED BETWEEN MULTIPLE ORGANIZATIONS. Regardless of which form of blockchain you use, you need to pay attention to protecting privacy, ensuring security, and controlling risks to truly reap the benefits of blockchain technology.

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