From the Hyobi blog.
Source: Huobi Learn
Public chain (or public blockchain), refers to a blockchain where anyone with internet access can read the ledger, send transactions once the transfer request is confirmed on-chain, and participate in its consensus process. Based on their centralization levels, blockchain networks are categorized into three different application scenarios:
1. Public chain that is permissionless and open to all users;
2. Alliance chain/consortium chain that only allows authorized nodes to join the network and information can be viewed with permission. It is often used by institutions within the alliance;
3. Private chain refers to a blockchain project in which all network nodes are controlled by an individual or institution.
What are the advantages of public chains?
1. Public chains can protect users from the interference of procedural developers.The developers of the program in the public chain do not have the right to interfere with the user, so the user’s rights and interests are more likely to be protected. In addition, one of its prominent features lies in its highly decentralized, distributed data storage, which brings many advantages such as openness and transparency in data processing and preventing data from being tampered with. Thus, public chains are able to safeguard users’ data more effectively.
2. Public chains can generate a certain degree of network effect.The success of an information product lies in its ability to build interconnections as people produce and use them to collect and communicate information more effectively. As the network scales up, it can offer more value to users and better satisfy users’ demands. Due to their openness, public chains stand a good chance to be adopted by external users, thus bringing a certain degree of network effect.
3. Public chains can be applied to actual business scenarios.Other than the financial domain, public chains play a prominent role in Web 3.0 which requires a high level of trust, security, and durability, such as asset registration, voting, management, and IoT.
Source Link: Huobi Learn
This article came directly from the Hyobi Global blog, found on https://blog.huobi.com/2023/08/10/what-is-public-chain/