Lesson 2: Let's understand the features of public chains.

Let's review the characteristics of public chains

Public chains are characterized by the fact that all data is open to the public and managed by countless miners.

These characteristics make it possible to achieve the blockchain's goal of a transaction approval mechanism that does not require a third party, in other words, decentralization.

The concept of decentralized

Blockchain was a technology that enabled transactions to be executed correctly without the need for a third party.

This state is referred to as a "decentralized" state in industry practice.

In order to achieve this decentralization, the public chain emphasizes two elements: Trustless, which means trustless, and Transparency, which means transparency.

Let's understand the benefits of Trustless

In the conventional system, transactions are completed based on trust in the intermediary.

For example, when you transfer money through a bank, it is based on the trust that the bank will not misuse the money and will deliver it to the recipient.

In the case of a bank, we don't really feel it, but when we send an email using Gmail provided by Google, for example, we can't be sure that Google is not snooping on the contents of the email.

When you do something through a third party, this kind of risk is actually lurking.

Blockchain is a trustless system that eliminates these risks.

Let's understand the advantages and disadvantages of Transparency

All data recorded in the blockchain is completely public.

And this data is held by all administrators (Miners) exactly the same.

Therefore, even if a malicious miner records incorrect data in the blockchain, it can be detected instantly because all other miners have the correct data.

This feature makes it possible to prove that the data recorded in the blockchain cannot be tampered with and is the correct data.

This is the benefit of transparency.

On the other hand, there are some disadvantages to the transparency of blockchain.

For example, blockchain is not suitable for recording personal information.

In addition, according to the Personal Information Protection Law, the custodian of personal information must be able to delete it from the database at any time at the will of the provider of the personal information.

If personal information is recorded on a blockchain that is not only public but also cannot be altered (modified or deleted), it will be irretrievable.