Public Vs.

Private Blockchain

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Introduction
 Hyperledger vs Ethereum
Two of the hottest jobs in the blockchain market
are “Ethereum developer” and “Hyperledger
developer”. While there are many more platforms
coming around, these two have pretty much
conquered the realms of public blockchain and
permissioned blockchain respectively
So, why should you learn Ethereum
and Hyperledger and what are the benefits that
you can gain from learning them?
 Public and Permissioned Blockchains
There are two kinds of blockchains out there:
Public Blockchains
Private/Permissioned Blockchains
Before we get into individual definitions and see what
sets them apart, let’s get into the similarities. So, what
are the similarities between public and private
blockchains?
Since they are both peer-to-peer networks, both of them offer a
decentralized ecosystem.
Every single participating node must download a copy of the
blockchain.
The blockchain is kept up-to-date through consensus protocols.
Both the blockchains guarantee immutability.
 Public Chains
All the blockchains that we are familiar with are public blockchain.
Bitcoin and Ethereum have pretty much championed the cause of
public blockchains. You must have pretty much guessed why they
are called public blockchains. They are completely open
ecosystems where anyone can take part in the ecosystem. The
network also has an in-built incentive mechanism which rewards
participants for taking part more thoroughly in the system.
So, what is the biggest advantage of public blockchains? Well, it is
in their ability to disrupt our day-to-day activities! Think of any
economic innovation that can come close to Bitcoin’s capability of
disruption.
Plus think of how disruptive decentralized applications or DApps
can be. In fact, this is such an important topic that we will explore
more deeply in the future
 Public Chains
However, having said that, public blockchains are extremely
impractical for enterprise purposes. Let us tell you why.
Firstly, as has been extremely well documented, the blocks in bitcoin and
ethereum have a storage issue. Bitcoin has a little over 1mb of space per block
which is simply not enough to run the kind of transactions and store the kind of
data that enterprises require.
Then we have the throughput problems which have been pretty well-
documented. Bitcoin can barely manage 7-8 transactions per second. The block
confirmation time is 10 mins which just adds to the latency. Big enterprises need
to deal with millions of transactions per day with near 0 latency.
Public blockchains, especially the ones that follow the proof-of-work protocol like
Bitcoin require an immense amount of computational power to solve hard puzzles.
Finally, the openness of the public chains is itself a detriment. Think about it. If
you have a company which runs on a blockchain which can be accessed by
malicious actors and trolls, would you really want to integrate a system like that?
Because of these reasons, public blockchains are not a practical
method to go forward for enterprises
 Private/ Permissioned Chains
As opposed to the public blockchains, private blockchain is
not open for everyone. People who want to participate in
the private chain must gain permission. This is the reason
why these kinda blockchains are also referred to as
“permission blockchains.”
Because of this, there are restrictions to the kind of people
who can actually take part in the consensus. Access for
new participants could be given by the following:
 The existing participants who are taking part in the ecosystem.
 A regulated authority.
 A consortium.
 These permissioned chains have been specifically designed for
enterprise needs and offer a lot of features.
 Required Features of
Permissioned Blockchains
 #1 High Performance
Like we have already said, public chains don’t even
approach 100 transactions per second. When you
consider the fact that most of the enterprises like
telecom and credit processors need 10,000 – 100,000
tps, that’s not really the most ideal of scenarios.
In order to reach those levels of tps, blockchains
need to adopt an architectural approach which:
Efficiently compartmentalizes different tasks.
Uses asynchronous flows.
Uses faster consensus protocols.
Utilizes parallelization
Executes itself in optimized environments.
 #2 High Resilience
Enterprise blockchains must be able to come back from
downtime and potential failure scenarios. To ensure high
availability, they must be able to avoid issues which may lead
to major outages. To have that level of resilience, the system
should assume that failures are bound to happen and must be
prepared to keep the system running during these situations.
Think about how traditional enterprise software survives
system failure. They often utilize service replication and
redundancy to make sure that they don’t go through low
availability. Similarly, enterprise chains should deploy
redundant peer nodes, clustered ordering services, and
replicate other working blockchain network components to
work seamlessly without any glitches.
 #3 Privacy
Privacy and security is obviously a huge need for enterprise-level
blockchains. Since these are permission blockchains, all members
are known entities and carefully vetted before they enter the
ecosystem.
According to an article by Coindesk:
 “Digital signatures applied to all network messages enable all nodes and clients to
verify the sender and validate message integrity. This is coupled with transport
security to authenticate the communications endpoints and encrypt the message
traffic.
Further, automatically applying encryption for the stored data completes the best
practices for encrypting data in transit and at rest. When this foundation is used
transparently and pervasively for all secure communications and stored ledger
data, it’s a big step forward in maintaining the integrity and security of the
blockchain network, preventing most hacking attacks.”
Since we are going to look into a public blockchain (Ethereum) and a
permissioned blockchain (Hyperledger) we thought you should know
what the difference between the two.
Ethereum: The Smart Contract
Platform
 Ethereum: The Smart Contract Platform
While Bitcoin showed the potential of the
blockchain technology as a peer-to-peer
decentralized payment network, many people were
starting to wonder if that was the extent of the
blockchain technology. One of those people
happened to be Russian-Canadian programmer
Vitalik Buterin. He founded Ethereum, a
decentralized smart contract platform.
Developers from around the world can use
Ethereum’s virtual machine to execute their smart
contracts and hence run their DApps.
 What are Smart Contracts?
Smart contracts are automated contracts. They are self-
executing with specific instructions written on its code
which get executed when certain conditions are made.
Smart contracts are how things get done in the Ethereum
ecosystem. When someone wants to get a particular task
done in Ethereum they initiate a smart contract with one or
more people.
Smart contracts are a series of instructions, written using
the programming language “solidity”, which works on the
basis of the IFTTT logic aka the IF-THIS-THEN-THAT
logic. Basically, if the first set of instructions are done then
execute the next function and after that the next and keep
on repeating until you reach the end of the contract.
 What are Smart Contracts?
The best way to understand that is by imagining a vending
machine. Each and every step that you take acts like a trigger for
the next step to execute itself. It is kinda like the domino effect. So,
let’s examine the steps that you will take while interacting with the
vending machine:
 Step 1:You give the vending machine some money.
 Step 2:You punch in the button corresponding to the item that you want.
 Step 3:The item comes out and you collect it.
Now look at all those steps and think about it. Will any of the steps
work if the previous one wasn’t executed? Each and every one of
those steps is directly related to the previous step. There is one
more factor to think about, and it is an integral part of smart
contracts. You see, in your entire interaction with the vending
machine, you (the requestor) were solely working with the machine
(the provider). There were absolutely no third parties involved.
Why should you learn
Ethereum
 Why should you learn Ethereum
“Learning Ethereum” is a very vague thing to say.
By learning Etheruem from a developer’s point of
view, we mean learning how to create smart
contracts using solidity, viper etc. The smart
contract is the code behind decentralized
applications or DApps.
So, when you ask why you should “learn
Ethereum” you are actually asking, “why should I
learn how to create DApps?”
Well, there are several reasons to do so:
 #1 Decentralization is the Future
Centralization of user data is a big issue when it comes to
current applications. One needs to look no further than the
Facebook debacle to understand what we are talking about.
The scandal happened in early 2018 when it was discovered
that Facebook sold their user data to British political consulting
firm, Cambridge Analytica. Millions of users simply got their
private data sold to the firm without their knowledge.
Various political organizations used information from the data
breach to attempt to influence public opinion. Do you know what
political decisions were made via the information gleaned from
Cambridge Analytica?
The Brexit
Trump’s election
Literally two of the biggest political events in recent years.
 #1 Decentralization is the Future
It is important to understand that the sole reason why
this happened was because all this data was stored
inside a centralized body, in this case, Facebook.
Now the question to consider here is, what would have
happened if the data was not owned by a single entity,
but was instead owned by a wide area network? This
would have completely taken the power away from a
centralized institution like Facebook.
So, keeping this in mind, it is extremely evident that
applications which have a decentralized model are the
future.
 #2 Built-in Payment System
In current applications, they need to integrate their
DApps with a third party payment platform like
Paypal or Stripe which not only complicates their
development but makes them subject to the whims
of those parties as well. Eg. if Stripe goes down,
then that application will not be able to accept
payments for that time period.
DApps create an internal economy within their
system via native tokens. Any and all transactions
that happen in their ecosystem takes place via the
exchange of native tokens
 #3 Transparency
Another interesting feature of the blockchain technology
is transparency. Transparency basically means that
whatever you store in the blockchain is going to be
visible to everyone.
So, how is this useful?
Since the DApps use smart contract code as their back-
end logic, blockchain’s transparency allows anyone and
everyone the power to inspect and verify the code. This
helps developers to find and expose vulnerabilities. This
will stop hackers from stealing funds and/or data.
Ok, so now you know the benefits of learning Ethereum.
But now let’s look into Hyperledger.
Hyperledger: The Enterprise
Blockchains
 Hyperledger: The Enterprise Blockchains
Unlike Ethereum, “Hyperledger” doesn’t refer to a
specific kind of technology. Hyperledger is the
name given to a banner project by Linux
Foundation for multiple blockchains and DLT
technologies. The example of these hyperledger
projects are:
Hyperledger Fabric
Hyperledger Sawtooth
Hyperledger Iroha
Hyperledger Indy
Hyperledger Burrow
 Hyperledger: The Enterprise Blockchains
Hyperledger Fabric is the most popular of all these projects, so we
are going to focus on that in this article. While Ethereum can be
used to create projects for B2C purposes, B2b is more of a domain
for Fabric. They provide a permissioned blockchain infrastructure
providing a modular architecture which we will talk about a little
later.
The Fabric network executes smart contracts, called chaincode, in
golang, Javascript, and Java, making coding much more flexible
than Ethereum. Their network consists of “Peer nodes”, and is
primarily aimed at creating enterprise blockchains. Examples of
industries that are using Fabric are supply chain, healthcare,
banking etc. Fabric doesn’t have a native token, however, the
chaincodes can build a native token of their own.
So, why should you opt to learn Hyperledger Fabric? Well, there are
several reasons:
 #1 What is your focus?
Firstly, you will need to ask yourself what you are
focusing on. Are you looking to be employed by a
well-known legacy company who wants to
incorporate the blockchain technology into their
operations? If yes, then you should definitely learn
Hyperledger Fabric.
 #2 Industry Disruption Blockchains
More and more industries are understanding the power of
blockchain technology. Because of its immutability and
decentralization, blockchain has made information sharing
between companies extremely simple and straightforward.
A perfect example of this is financial institutes. Normally, if
you want to open up a new bank account, then you wll
have to do your KYC from scratch. However, by
incorporating a blockchain, the banks can simply share the
KYC data between them.
Let’s not even get started on how blockchains can disrupt
the supply chain industry and the healthcare industry. All-
in-all, more and more industries are opening up to the
potential of the blockchain industry.
 #3 Public Blockchains are not Ideal
Like we have already mentioned before, public
blockchains are not ideal for enterprise use. The
two biggest problems with public blockchains are
scalability and privacy. The reason is pretty simple:
 Companies deal with millions of transaction every second.
That is way above what public blockchains can handle right
now.
 They deal with a lot of sensitive data so they can’t just let
anyone join their network.
#4 Modular Architecture supporting Plug-in Components

Hyperledger Fabric has a modular architecture.

This means that it saves the developers huge
amounts of time and effort since they don’t need to
build from scratch, which is a huge advantage.
One of the most popular areas of modularity is
“identity management.” Many companies are using
an identity management module instead of building
it from scratch.
Why You should opt for
Blockchain Jobs
 Why You should opt for Blockchain Jobs
Alright, so now that you know the advantages of
learning Ethereum and Hyperledger, the question
is,whyshould you spend your valuable time
learning a new skill? Why should you change your
career focus and enter the blockchain space?
Well, let’s explore some more reasons as to why
you should opt for a blockchain job. (The content
idea and graphs for this section has been taken
from Angel.co.)
 #1 Better Pay
Since this is such a young field and the talent
available is pretty limited, the salaries offered
throughout both technical and non-technical fields
are 10-20% higher than the salaries offered in a
normal job.
Plus, it is also worth noting that the profit sharing
models in crypto jobs are way better and the
incentives a lot higher.
 #2 Remote Flexibility
Remote jobs are on the rise and more and more
people are quickly shunning the concept of an
“office” and opting for location flexibility. This is
another area where crypto companies outdo their
legacy peers.
Plus, remember that crypto companies are far
more likely to give you the “work from home”
option and require you to come to work only on
specific days.
 #3 Employee Liquidity
This is a perk which is limited to token companies.
Usually, at a startup, employees receive equity and
have to wait for a liquidity event to sell shares and get
Fiat currency. This may itself be a very complex
process and in many scenarios, grants given by
companies are very restrictive which blocks
secondary transactions.
In blockchain companies, employees usually get
tokens which acts as an equity-like compensation.
These tokens, unlike shares, are inherently liquid,
even though some of them may still have restrictions
on them.
Hyperledger vs Ethereum
Certification
 Ethereum Certification
By taking our Ethereum accelerator program, you
will:
 Be able to run your own ICO
 Have a complete understanding of Ethereum
development, the blockchain, and its history
 Create and deploy smart contracts
 Be job ready and have built relationships with industry
professionals
 Breakdown of the Course
Let’s look into a week-by-week breakdown of the accelerator program.

Week 1: Intro to Ethereum

Peer to Peer Network
How Bitcoin Works
Cryptography
Consensus and Mining
Proof of Stake
Linking Blocks and Merkle Proof
History of Ethereum

Week 2: Smart Contracts

Escrow contracts
Auction contracts
Election contract
Parity Wallet Hack
Betting contracts
Webinar: SpankChain Hack
Project: Write ERC20 and CrowdSale contracts
 Breakdown of the Course
Week 3: DApp Development
 Intro to Dapps
 Truffle Migrations
 Truffle UI
 Truffle JavaScript Testing
 Truffle Solidity Testing
 Truffle Deployment
 Project: Reward point system

Week 4: Production and Security

 Buddy Works for CI
 Understanding Ethereum Gas
 Smart contract security
 Project: Crypto-kitty Clone
 Breakdown of the Course
Bonus Materials
 A weekly live lesson with our teachers
 Direct access to teachers and dedicated support
 Weekly quizzes with feedback
 Weekly assignments and projects with feedback
 Final Blockdegree exam (Score 90% or higher and receive
a personal non-fungible ERC-721 token that will identify you
as a Blockgeeks Verified Blockchain Developer)
 Hyperledger Certification
By taking our Ethereum accelerator program, you
will:
 Be able to build your own public blockchain project
 Create your own blockchain “identity”
 Learn the fundamentals of setting up a private blockchain
network with Hyperledger Fabric
 Build a blockchain notary service API on Hyperledger
Fabric that can be used to secure digital assets
 Breakdown of the Course
Week 1: Managing your Blockchain Identity
Peer to Peer Network  
Cryptography
Cryptoeconomics of Bitcoin
Incentives on the Blockchain
Consensus and Mining
Project: Create your own blockchain “identity”

Week 2: Creating Your Own Private Blockchain & Notary Service

History of Ethereum
History of Bitcoin
Public and Private Chains
Intro to Hyperledger Fabric
Environment Setup
Hyperledger Fabric Network
Deploying Your First Network
Project: Build a blockchain notary service API on Hyperledger Fabric
 Breakdown of the Course
Week 3: Architecture, Supply Chain & Data Auditing
Chaincode for Developers
Chaincode for Operators
Project: Create your own full node and interface back-end services
Project: Modify your chaincode to support change of ownership

Week 4: Capstone Project

Project: Build your own public blockchain project

Bonus Materials
A weekly live lesson with our teachers
Direct access to teachers and dedicated support
Weekly quizzes with feedback
Weekly assignments and projects with feedback
Final Blockdegree exam (Score 90% or higher and receive a personal non-
fungible ERC-721 token that will identify you as a Blockgeeks Verified Blockchain
Developer)
Conclusion
 Should you Choose these Programs
 Due to the nature of our program, it will not be
suitable for every applicant. Therefore not every
applicant will be accepted into the program. We are
not doing this to be mean, but we only want to save
you time, money and frustrations. Therefore it is
strongly recommended that you have some kind of
prior programming basics, whether that’s javascript,
python, or something else.
 We are also limiting the spots in the program to 25
qualified people this semester. We do this in order to
make sure every student succeeds in the program
 Conclusion
So there you have it. Have we convinced you to
move into the blockchain space if you weren’t
going to do that already? Do you think that this will
be an interesting skill to add to your arsenal?
If yes, then come on over and join our courses.
Whether it be Ethereum or Hyperledger, we’ve
got you covered!
[email protected]