Private Chain

Digital ledger technology in a private environment.

Blockchains require facilitation, either privately or publicly. Private chains subsidize the cost of a distributed network via operational practices.

Example: An internal blockchain used to verify employee IDs— remotely —without publishing the data externally to a network

A private blockchain makes sense for an enterprise requiring heavy authentication, industries that exchange sensitive data or when data needs indiscriminate verification.

Private databases are maintained by private organizations and the value of their ledgers are speculative because they are closed and require third party audits. Private companies choose when to reveal information— aside from regulated reporting requirements.

Given the regulatory environment, the vast majority of companies that are private do not have to report the same information as public companies. Many aspects of private chains remain opaque the same as a private company.

For example;

• Chain structure/design

• Scalability/Throughput

• Resource consumption

A private blockchain does not need a cryptocurrency to function. You can simply deploy employee/contractor 'credits' that get consumed when services are used, provided or value is exchanged. This won't mean your credits are not related to crypto.

Tokens and currencies deployed on blockchains get created using cryptographic principles and therefore are classified as either; cryptocurrency or cryptotokens. Tokens or currencies issued via blockchains are protected by strong cryptographic principles. (Same standards used to encrypt military communications)

A public chain is permission-less and open. No admin controls the network. There is 'no CEO' of a public blockchain.

With private chains, admins control entries, edits and can override functions and inputs as desired.