What is Public Blockchain?

This decentralized technology (namely cryptocurrencies) is what makes a public blockchain, one of the most mind-blowing ideas from our digital age. This is a base layer for the majority of today's known cryptocurrencies i.e. Bitcoin, Ethereum, etc. Here you will learn about the meaning of a public blockchain, how it functions and why this plays such an important role in the overall context of blockchain technology.

Public Blockchain Definition

A public blockchain is a distributed digital ledger open for any participant and maintained collectively according to allowable consensus protocols whereby transactions are recorded across multiple computer systems in such a manner that once entered; they cannot be altered retroactively. This type of transparency and immutability is what has made public blockchains so secure by design, and trustless — i.e., you don´t need a central authority or intermediaries to verify and validate transactions.

Characteristics of Public Blockchains

Decentralization: Public blockchains are also lacking decentralization Instead, they allow a network of computers to all independently maintain the same blockchain. The network is based on decentralization management, so no single administrator or entity has overall control of the whole chain.
Transparency: All transactions are publicly visible and verifiable on a public blockchain. It is this transparency that helps make public blockchains unique, giving users the ability to prove transactions on their own. Every transaction is recorded in a public ledger and open for everyone to see and audit.
Security: The public chain utilizes powerful cryptographic techniques for data and transaction security. Because of its decentralized structure, these networks are toughened against attacks. Since there is no central point of failure, it becomes virtually impossible for any bad actor to interfere with the blockchain.
Immutability: Once the data is recorded on a public blockchain, it cannot be changed or removed. Because of this immutability, the data on the blockchain can be trusted and are valid. Unchangeable transactions are permanently recorded and tamperproof.
Anonymity and Pseudonymity: Public blockchains that maintain user anonymity, however not pseudonymous. Although all transactions are visible, the identities of these users are not necessarily linked to their real-world identities. This can be useful in that it gives users a level of privacy.

How Public Blockchains Work

Transaction Creation: When a user initiates a transaction, it broadcasts itself onto the whole network A transaction consists of the sender address, destination address, and the quantity of BTC being sent.
Validation: Nodes on the network (miners or validators) validate the transaction. This involves checking if the sender has enough balance and the type of transaction matches network rules.
Consensus Mechanism: Consensus techniques like Proof of Work and Proof of Stake are used by public blockchains to reach agreements over the veracity of transactions and the composition of the blockchain. In PoW, miners solve complex mathematical puzzles to validate transactions and create new blocks. In PoS, validators are chosen based on the number of tokens they hold and are willing to stake.
Block Creation: The validated transactions are added to a block, which is then chained to the previous block. New blocks are connected to the previous one creating a long chain of block.
Broadcasting the Block: When a block is created it is broadcast to the network The nodes will update their copy of the blockchain to include this new block thereby ensuring all copies for everyone in possession of the blockchain stay consistent.

Examples of Public Blockchains

Bitcoin: The first public blockchain in history designed to be a decentralized medium of exchange, free from the meddling hands of governments and central banks.
Ethereum: Ethereum expands public blockchains functionality and smart contracts making dApps possible. Developers can use it to write code that will run on the blockchain and handle sophisticated transactions & processes.

Benefits of Public Blockchains

Trustless Transactions: In this public blockchain network, you do not need to know anyone and trust each other. Consensus on the contents of transactions is reached through a logical computational algorithm and monetarily validated automatic role validation in the network.
Open Participation: Does not provide a central privacy disclosure that the host on the network can use to run public blockchain more secure and decentralized. This kind of openness gives rise to innovation and collaboration.
Data Integrity: The immutability of the block provides a durable record so that all transactions can be broadcasted through it to the world on the public blockchain.

Problems Of Public Blockchains

Scalability: Public blockchains are slow and resource-sizeable, which results in a lack of scalability. R&D are already working with how to achieve an improved balance in the performance-security tradeoff.
Energy Consumption: Machined proof like PoW requires a lot of computing power in the network, which results in high energy consumption. This is causing concerns about how public blockchains will scale sustainably.

In summary, public blockchains are a transformative way to transact and manage data in the digital realm. Decentralization, transparency and security are the three main components of a smart contract that makes it very feasible to use in trustless systems wherein no central or intermediaries are required. In the future, public blockchains are expected to grow rapidly in many vertical industrial fields and trigger breakthrough innovation and process reformation.