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On October 30th, Ernst & Young (EY) announced the world’s first distributed ledger.The company called the Ernst & Young Ops chain public version created a new Blockchain prototype Combining the security of the public ledger model and the privacy of the private ledger model, a private blockchain is formed.
It does this by using zero-knowledge proof (ZKP) technology on the public Ethereum blockchain. It claims that the result is a network that can meet the needs of institutions, especially in the financial sector.
But why do professionals who need to combine the two networks, but what is missing?
Compared with private, the benefits and problems of public blockchain
Anyone can join the public blockchain and read or write transactions.As a result, the public Blockchain It consists of thousands of independent computers called “nodes”. This huge ecosystem means resilience and security-a huge affirmation of the blockchain model. Bitcoin and Ethereum are well-known examples of such blockchains.
However, every transaction on this type of ledger must be verified by every node. With thousands of nodes forming a network, this has become a problem.
This is a problem because in order to reach consensus or verification, nodes perform Proof of Work (PoW). PoW is a complex cryptographic equation solved by a computer. Therefore, the transaction time can be slow and costly, and this is especially noticeable when the transaction volume is large and the transaction volume is large.
This is the term scalability, which refers to the ability of the network to process and handle a large number of transactions at any given time. Until the scalability of public blockchains is improved, many companies are reluctant to use them.
Another issue facing public blockchains is privacy. Each transaction provides detailed information such as amount, date, sender’s address and receiver’s address. This is visible to anyone on the Internet. Although many users like this type of transparency for security reasons, there is a lack of commercial privacy for institutions or anyone doing large transactions.
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Compared with public, the benefits and problems of private blockchain
Users must be invited to use the private blockchain. Therefore, the network is considered closed or exclusive and can be called a permissioned blockchain. Naturally, this network model has fewer members than public blockchains, so it is more vulnerable to hacker attacks.
If the blockchain is completely private, the network rules are usually controlled by an organization or several pre-selected nodes. Not every member on the network has reached a consensus, but the selected node group has reached a consensus.
Since the private blockchain is private, it is very suitable for enterprises and enterprises to adopt. The transaction is only visible to a limited number of invited participants.
Hyperledger is a good example of this type of blockchain. R3 is another, a global bank and financial institution blockchain consortium based on Corda, its distributed ledger technology product.
However, as mentioned above, what the private blockchain gains in terms of privacy, it lacks security. As the number of nodes on the network decreases, manipulation and/or hacking becomes more reasonable.
in conclusion
In short, there are two basic blockchain models. Can Ernst & Young’s new prototype truly solve the scalability problem of large distributed ledgers, while at the same time providing its users with maximum security and privacy? Sounds too good to be true, right?
Featured image: Depositphotos /©kataklinger
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