What are public chain, private chain, alliance chain, cross chain and side chain
What do these various chains mean? Let me popularize it for you:
These blockchains have their own characteristics and different application scenarios.
Public chain refers to a blockchain in which anyone in the world can enter the system at any time to read data, send confirmatory transactions and compete for bookkeeping.
Public chains are often considered “completely decentralized” because no individual or institution can control or tamper with the reading and writing of data.
The public chain generally encourages participants to compete for bookkeeping through the token mechanism to ensure the security of data. Bitcoin and Ethereum are typical public chains.
Private chain refers to a blockchain whose write permission is controlled by an organization and institution, and the qualification of participating nodes will be strictly limited.
Because the participating nodes are limited and controllable, the private chain can often have extremely fast transaction speed, better privacy protection, lower transaction cost, not easy to be attacked by malicious attacks, and can meet the necessary requirements of the financial industry such as identity authentication.
Alliance chain refers to a blockchain managed by several institutions. Each institution runs one or more nodes. The data in it only allows different institutions in the system to read, write and send transactions, and jointly record transaction data.
The design privacy permissions between private chain and alliance chain are different, and the permission design requirements in alliance chain are often more complex.
Cross chain, as the name suggests, is a technology that allows value to cross the barriers between chains and carry out direct circulation.
Blockchain is a kind of distributed general ledger. A blockchain is an independent ledger. Two different chains are two different independent ledgers. The two ledgers are not related. In essence, there is no way to transfer value between account books, but for a specific user, the value stored by the user on one blockchain can become the value on another chain, which is the circulation of value.
If consensus mechanism is the soul and core of blockchain, then for blockchain, especially alliance chain and private chain, cross chain technology is the key to realize the value network. It is a good medicine to save the alliance chain from scattered and isolated islands and a bridge for the outward expansion and connection of blockchain.
What is the side chain? This concept comes from the bitcoin community and was proposed in December 2013.
The birth of the side chain is due to some problems in the mechanism of bitcoin itself or a blockchain itself. However, if it is modified directly on the bitcoin protocol or bitcoin chain, it is easy to make mistakes. Moreover, the bitcoin block has been running all the time. In case of mistakes, the amount of funds involved is too large. This is not allowed.
In this case, the side chain was born.
In essence, the side chain mechanism is a mechanism to move money between two blockchains, which allows assets to transfer between bitcoin blockchain and other chains. Reduce the number of transactions on the core blockchain.
In essence, sidechains do not specifically refer to a blockchain, but all blockchains that comply with the side chain agreement. This term is relative to the bitcoin main chain.