How to distinguish between controlled and censored blockchains

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How to distinguish between controlled and censored blockchains

Not all blockchains are the same. Every week we hear about new blockchain applications that promise us a better and brighter future. Now blockchain is used not only for cryptocurrencies – completely new and even unexpected ways of its application appear.

Given the wide variety of alleged cases of using blockchains, two fundamentally different models have arisen: controlled and censored. Let’s find out what these two terms mean.

Censored Blockchains

Many believe that the censorship-resistant model is closer to the original concept of the blockchain set forth by Satoshi Nakamoto.

The censorship-resistant blockchain is quite simple, as its name implies – permission is not required to become a member of such a network and to contribute to its contents. Theoretically, anyone can take part in his work. Censorship in this case closely borders on the publicity of such systems.

Since anyone can join censorship-resistant blockchains, they tend to be much more decentralized compared to controlled systems. One of the drawbacks of censorship-resistant blockchains is that they are slower than controlled blockchains.

Transaction information stored on censorship-resistant blockchains is usually verified by the community. What is happening is not controlled or regulated by a third party, and the truth of transactions can only be confirmed by the consensus of the community. But what if you need more control and privacy?

Controlled blockchains

Controlled blockchains turn the idea of ​​blockchains upside down. Initially, the blockchain was invented as an open, free and open source system, but controlled blockchains became the exact opposite of this. Controlled blockchains are also often called private.

Everything is also quite simple here: controlled blockchains require permission to join them. And only the owner of such a network can decide who can participate in its work, and to whom not. Such management also means that the owner of the blockchain chooses the network structure, issues software updates and, as a rule, controls everything that happens on its blockchain.

Information in controlled blockchains can only be verified by authorized network participants. The owner can also decide who can be provided with information and control over it. In some cases, the community will also be able to view certain information stored on a private controlled blockchain.

Take, for example, Walmart, an American supermarket that plans to track vegetables through the blockchain, aiming to reduce the number of E. Coli bacteria in foods. Such information can be checked / approved by Walmart and its suppliers, however, only the origin of the product is available to the wider community of blockchain participants.

Controlled blockchains are more scalable, and they can work faster due to centralization and smaller amount of processed information.

Controlled blockchains are becoming quite popular: they are used by banks, supermarkets, shipping companies and even telecommunications companies.

Conclusions

In censored blockchains, transaction information is verified by the community. In controlled systems, transaction information is checked by a selected group, the composition of which is approved by the owner of the blockchain.

Controlled systems, as a rule, are more scalable and faster, and everything is solved centrally in them. Censorship-resistant systems are open to all, and they are more decentralized; However, their minus is less speed and scalability.

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