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This places restrictions on who’s allowed to participate within the network and in what transactions. Participants need to obtain an invite or permission to join. A private blockchain network, just like a public blockchain network, is a decentralized peer-to-peer network. However, one organization governs the community, controlling who’s allowed to participate, execute a consensus protocol and maintain the shared ledger. Depending on the use case, this will significantly boost belief and confidence between participants. A personal blockchain can be run behind a corporate firewall and even be hosted on premises.

Drawbacks may include substantial computational power required, little or no privacy for transactions, and weak safety. These are essential considerations for enterprise use instances of blockchain. 4 Blockchain builds trust Blockchain creates belief as a result of it represents a shared report of the reality.

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