1. What is Public Blockchain ?

Public blockchains are open networks that allow anyone to participate in the network
i.e. public blockchain is permissionless. In this type of blockchain anyone can join the
network and read, write, or participate within the blockchain. A public blockchain is
decentralized and does not have a single entity which controls the network. Data on a
public blockchain are secure as it is not possible to modify or alter data once they have
been validated on the blockchain.
Some features of public blockchain are :

 High Security –
It is secure Due to Mining (51% rule).

 Open Environment –
The public blockchain is open for all.

 Anonymous Nature –
In public blockchain every one is anonymous. There is no need to use your
real name, or real identity, therefore everything would stay hidden, and no
one can track you based on that.

 No Regulations –
Public blockchain doesn’t have any regulations that the nodes have to follow.
So, there is no limit to how one can use this platform for their betterment

 Full Transparency –
Public blockchain allow you to see the ledger anytime you want. There is no
scope for any corruption or any discrepancies and everyone has to maintain
the ledger and participate in consensus.

 True Decentralization –
In this type of blockchain, there isn’t a centralized entity. Thus, the
responsibility of maintaining the network is solely on the nodes. They are
updating the ledger, and it promotes fairness with help from a consensus
algorithm .

 Full User Empowerment –

Typically, in any network user has to follow a lot of rules and regulations. In
many cases, the rules might not even be a fair one. But not in public
blockchain networks. Here, all of the users are empowered as there is no
central authority to look over their every move.
  Immutable –
When something is written to the blockchain, it can not be changed.

 Distributed –
The database is not centralized like in a client-server approach, and all nodes
in the blockchain participate in the transaction validation.

2. What is Private Blockchain ?

A private blockchain is managed by a network administrator and participants need
consent to join the network i.e., a private blockchain is a permissioned blockchain.
There are one or more entities which control the network and this leads to reliance on
third-parties to transact. In this type of blockchain only entity participating in the
transaction have knowledge about the transaction performed whereas others will not
able to access it i.e. transactions are private.
Some of the features of private blockchain are :

 Full Privacy –
It focus on privacy concerns.

 Private Blockchain are more centralized.

 High Efficiency and Faster Transactions –

When you distribute the nodes locally, but also have much less nodes to
participate in the ledger, the performance is faster.

 Better Scalability –
Being able to add nodes and services on demand can provide a great
advantage to the enterprise.

Difference between Public and Private blockchain :

Basis of Public BlockChain
S.no Comparison Private BlockChain
In this type of
In this type of blockchain anyone blockchain read and
can read, write and participate in write is done upon
a blockchain. Hence, it is invitation, hence it is a
permissionless blockchain. It is permissioned
1. Access – public to everyone. blockchain.
Network
2. Actors – Don’t know each other Know each other
 Decentralized
Vs Centralized A public blockchain is A private blockchain is
3. – decentralized. more centralized.
The order of magnitude of a
public blockchain is lesser than
that of a private blockchain as it The order of magnitude
Order Of is lighter and provides is more as compared to
4. Magnitude – transactional throughput. the public blockchain.
Native Token
5. – Yes Not necessary
6. Speed – Slow Fast
Transaction per second
Transactions Transactions per second are is more as compared to
7. pre second – lesser in a public blockchain. public blockchain.
A public network is more secure A private blockchain is
due to decentralization and active more prone to hacks,
participation. Due to the higher risks, and data
number of nodes in the network, breaches/ manipulation.
it is nearly impossible for ‘bad It is easy for bad actors
actors’ to attack the system and to endanger the entire
gain control over the consensus network. Hence, it is
8. Security – network. less secure.
A public blockchain consumes
more energy than a private
blockchain as it requires a
Energy significant amount of electrical Private blockchains
Consumption resources to function and achieve consume a lot less
9. – network consensus. energy and power.
Proof of Elapsed Time
(PoET), Raft, and
Some are proof of work, proof of Istanbul BFT can be
Consensus stake, proof of burn, proof of used only in case of
10. algorithms – space etc. private blockchains.
11. Attacks – In a public blockchain, no one In a private blockchain,
knows who each validator is and there is no chance of
this increases the risk of potential minor collision. Each
collision or a 51% attack (a group validator is known and
 of miners which control more they have the suitable
than 50% of the network’s credentials to be a part
computing power.). of the network.
Potential to disrupt current Reduces transaction
business models through cost and data
disintermediation. There is lower redundancies and
infrastructure cost. No need to replace legacy systems,
maintain servers or system simplifying documents
admins radically. Hence reducing handling and getting rid
the cost of creating and running of semi manual
decentralized application compliance
12. Effects – (dApps). mechanisms.
Bitcoin, Ethereum, Monero, R3 (Banks), EWF
Zcash, Dash, Litecoin, Stellar, (Energy), B3i
13. Examples – Steemit etc. (Insurance), Corda.

Cryptographic hash functions generate

a fixed-length character string from data
records of any length. A data record can
be a word, a sentence, a longer text or
an entire file.
 A cryptographic hash function is used for
security purposes and constitutes the backbone
of crypto security
  A hash function turns a random input of data
(keys) into a string of bytes with a fixed length
and structure (hash value)
 The hash of a transaction makes it easy to
identify transactions on the blockchain

What is a hash function?

The Bitcoin network depends on a set of rules called the Proof of Work consensus
algorithm. This consensus algorithm is a set of rules that governs a blockchain network.
Outside of cryptocurrencies, the most common usage of hash functions is in the storage
of passwords.
Let’s go back to the very basics. A mathematical function is used to illustrate an
expression or a relationship involving one or more variables or sets. Consequently, a
function relates an input to an output.

An example of this would be the size and price of burgers at a restaurant.

The cost of a burger is determined by its size.

Therefore, in this case, the cost is a function of the size.

Let’s say you can buy small, medium and large burgers and their respective costs are
$1.50, $2.50 and $3.50.

The input is the size of the burger.

The output is the cost of the burger.

A hash function turns an input (for example text) into a string of bytes with a fixed length
and structure. The output or value created is called a ‘hash value’ or ‘checksum.’ Any
hash value created from data using a specific hashing algorithm is always the same length
and one-way - it cannot be reversed.
What is hash function in blockchain?
What is hash function in blockchain?
What is hash function in blockchain?

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The term "hash function" is derived from the French word “hacher” which means to
“chop into small pieces”, indicating how a hash function is designed to “chop” the data.
Another type of data structure, a hash table, is frequently used for rapid detection of any
two identical hashes (hash values).

After Diffie and Hellman first identified the need for a one-way hash function in
their 1976 seminal paper on public-key cryptography, over the next two decades
developments in cryptography progressed rapidly. In 1990, cryptographer and MIT
professor, Ronald Rivest, invented the MD4 hash function and later the MD5 and MD6
functions. In 1995, the NSA (National Security Agency) designed the SHA-1 (Secure
Hash Algorithm 1) based on Rivest’s design, followed by the SHA-2 update in 2001.
SHA-2 is the standard that inspired SHA-256, which served as the baseline for Bitcoin’s
consensus algorithm.

The purpose of hash functions

Hash functions originated from the need to make content uniform in length on one hand,
and for usage as singularly unique identifiers on the other. Typical uses for hash
functions outside the cryptocurrency sphere include:

 Calculating a (short) checksum for an object, such as the checksum for an ISBN
(International Standard Book Number)
 Identifying any content almost without ambiguity but still “briefly”, without
revealing anything about the content in cryptographic applications
Properties of hash functions
A cryptographic hash function should be computationally efficient, meaning that it must
be quick in performance to create the hash value. It has to be deterministic - every time
you put in a certain input, it has to produce the same output and to be pre-image resistant
which means it cannot reveal any information about the input in the output.

Finally, a hash function has to be collision-resistant which ensures that it has to be

impossible for two different inputs to produce the same output. It is the deterministic
feature, pre-image resistance and collision-resistance that constitute the three most
important properties of hash functions in the Bitcoin mining process.

A hash function has to be collision-resistant which ensures that it has to

be impossible for two different inputs to produce the same output.
Hash functions in the mining process
Quickly running through the validation process in the Bitcoin network again, a block is
bundled and contains several transactions as well as information on the previous block.
This means if someone wanted to change the ledger or double-spend a transaction, he or
she would have to change the hash in all previous blocks.
In order for the bundled block to be added to the blockchain, miners need to find a hash
that meets the target difficulty. Each block contains a blockheader with the number of the
block, the hash of the previous block and a “nonce”, which includes a timestamp. The
purpose of a nonce is varying the input to a cryptographic hash function, that is increased
randomness, in computation during the mining process.
Solving the hash
The node then begins “hashing” the data by converting it into the hash value or “hash”,
which always needs to contain a certain number of zeros. The node checks whether a
hash meets the criteria of difficulty. The hash must start with the correct amount of
zeroes. If the hash meets the criteria of difficulty, it is broadcast to the other miners in the
network. The first miner to find a valid hash validates the block into a new block and gets
rewarded the block reward and fees in Bitcoin.
If the hash does not meet the criteria of network difficulty, another nonce is selected and
hashed. Miners probably have to generate many hashes with many nonces until they find
a nonce that meets the difficulty. This is the repetitive and energy-intensive process
known as Bitcoin mining which requires extensive computational power.
Hash functions constitute the backbone of the Proof of Work process. Without
confirmation and production of hash transactions, the blockchain would not be tamper-
proof and inalterable and it would not be possible to prove who owned which amount of
Bitcoin at what time.