Curious about blockchain technology in banking
What is the difference between public and private blockchain in banking?
In banking, public blockchains are open and transparent, allowing anyone to participate in the network, view the transactions, and verify them. Private blockchains, on the other hand, are permissioned, which means that only authorized parties are allowed to join the network, view the transactions, and validate them. Private blockchains are typically used within organizations or consortiums where participants trust each other and are willing to share data in a more restricted environment. Public blockchains, while offering greater transparency and decentralization, may be subject to regulatory and legal challenges, which is why private blockchains are often favored by financial institutions.