With growing concerns about whether open, public blockchains can govern themselves, more people are exploring the potential of private blockchains. But what is the difference and why are they seen as a potential alternative?
Distributed ledgers and cryptocurrency systems are fundamentally different. The key difference involves how transactions are validated: Bitcoin uses pseudonyous and anonymous nodes to validate transactions whereas distributed ledgers require legal identities – permissioned nodes to validate transactions. Consequently, distributed ledgers are able to legally host off-chain assets due to their authenticated, permissioned approach to validation. […]