2.3.2.4 Private Networks

return to Network Access Control

A private network limits access to the network to individuals or nodes granted and verified to have permission to participate in joining, leaving, reading, writing, and auditing activities on the network. A participant joins a private network only through an authentic and verified invitation; validation is performed either by the network operator(s) or using a clearly defined set of protocols implemented by the network1) “Public, Private, Permissioned Blockchain Compared”, Shobhit Seth, Investopedia, 10 April 2018, https://www.investopedia.com/news/public-private-permissioned-blockchains-compared/ .

Note: Recently, the idea of Private Networks as more secure is seriously challenged by the Zero Trust Security Model which basically states that establishing a secure perimeter is not enough to establish a trust to the individual or the machine. Especially with the advent of cloud-based architectures and people needing to use multiple devices from inside and outside the confines of the secure perimeter.

Benefits of Private Networks

Enterprise Permissioned2) “Public Vs Private Blockchain In A Nutshell”, Demiro Massessi, 12 December 2018, https://medium.com/coinmonks/public-vs-private-blockchain-in-a-nutshell-c9fe284fa39f :
The enterprise controls the resources and access to the blockchain, hence private and/or permissioned.Faster Transactions2):
When you distribute the nodes locally, but also have far fewer nodes that participate in the ledger, performance is faster.Better Scalability2):
Being able to add nodes and services on demand can provide a great advantage to the enterprise.Compliance Support2):
As an enterprise, you would likely have compliance requirements to adhere to; having control of your infrastructure enhances ability to satisfy this requirement more seamlessly. Consensus More Efficient (fewer nodes)2):
Enterprise or private blockchains have fewer nodes and usually a different consensus algorithm, such as BFT vs PoW.