Permissionless Blockchain, or Public blockchain, is considered to be the network that has the most resemblance to the original blockchain concept of Satoshi Nakamoto. Suggested by its name, permissionless blockchain is a network where anyone can enter to participate, contribute, and even become a validator. In any case, users don’t have to verify their identities. Theoretically wise, there is no limit to joining such a network, hence, anyone can take part in this ecosystem. Additionally, when using a permissionless blockchain, you can choose to work anonymously or pseudonymously.
Prime examples of public blockchain include Ethereum and Bitcoin. In these ecosystems, transaction information is transparent as they are validated by nodes. The network is completely decentralized with no govern agents or third parties that regulate the chain. In return, permissionless blockchain can maintain its nature of self-governance. Moreover, when users are free to perform on a decentralized, authority-free platform, the network becomes transparent and trustworthy.
In general, a public blockchain offers users:
Such permissionless network like Ethereum is completely decentralized. This means that all the users are equal, no single agent can alter the protocols, edit the ledger, or shut down the network. This helps create a fair system.
Moreover, a decentralized environment increases data security, improves data reconciliation, reduces weak points in the system, optimizes the distribution of resources, as well as exhibits high fault tolerance.
In addition, decentralization means that the community’s strength relies on the number of its users. Huge blockchain such as Ethereum features an extensive number of validators that can enhance the network’s security.
Transparency in transaction
In a public blockchain, users have access to view the same data on the blockchain. This peer-to-peer network makes it easy to trace any data movement and transaction on the chain. Additionally, data transparency helps improve security in blockchain. Each member holds an exact copy of the same data in the distributed ledger in this network. Therefore, if this ledger is corrupted through any means, then the majority of the members reject it within the network of data security.
Permissionless blockchain provides users high security through its decentralized environment as well as its immutable data through the hash function.
Hashing is an encryption function that gives a unique hash value to the original data. Through this process, any size of data will be converted into a fixed value. It is important that this value collates with the original text’s value. If there is any interference with the original text, the outcome value will alter completely. Moreover, unlike cryptography, hashing is an indecipherable one-way encryption. As a result, it is impossible to convert a hash to its original form. These characteristics mean that data recorded on a blockchain is immutable. Such restricted access to data makes blockchain handle privacy problems more effectively.
The main pain point of permissionless blockchain relies on the number of its user. While it is desirable for the network to grow, this increased number of participants comes along with the decrease in transaction speed and scalability.
A prime example is the Ethereum network. With 6 years of development, Ethereum has grown rapidly and so has its community. Currently, the blockchain is facing an expensive price for using the network, as well as low scalability. To resolve the situation, Ethereum introduced a protocol update to Proof-of-Stake. Nevertheless, this solution is facing delays and lacking a secured online.
While the Mainnet faces scaling problems, Layer 2 solutions such as BLOOCK are developed. These L2 Dapps aim to improve the transaction processing rate as well as lower the total gas fee while keeping all the advantages of a permissionless blockchain.
At BLOOCK, our solution focuses on helping enterprises to record their data securely on the Ethereum blockchain. As our digital space grows, the need to secure your data is urgent. Nowadays, organizations have enormous proportions of information in every sector. Therefore, enterprises need to take quick action and normalize data storage as well as high-security plans to adjust their functional construction to industry prerequisites. It will consistently be with you as a safe digital wallet in an application with blockchain records verification.
With BLOOCK, we guarantee your project with high scalability, extreme privacy, and an easy adaptation to blockchain data recording.
To further understand how our application works, book a demo or contact us at: firstname.lastname@example.org