Private use of a public blockchain

Written by

Todd Price

Published On

17 Mar 2022

While the blockchain industry has been around for over a decade, it has only been in recent years that it has started to professionalise and mature into a technology which can provide legitimate solutions to enterprise use cases.

In the early days, expertise and professionalism in relation to the technology was scarce, and this opened a Pandora’s box for other radical narratives to emerge for the use of the technology.

This meant enterprises that dared to foray into the world of blockchain were sometimes tarnished with a degree of guilt by association. Couple this with the fact that many actions written to the blockchain are in clear text, and it’s natural to understand why legacy enterprises were reluctant to pursue it for their business use cases.

The false dichotomy between private and public blockchain

Out of this hesitancy arose the notion of private blockchains, whereby enterprises presumed they would have the benefits of a blockchain system while still maintaining the privacy and security required to handle their sensitive data.

Although this is understandable, it is also unfortunate for them to have been presented with the false dichotomy between public and private blockchains as in fact, there need not be any such choice between the two.

The disadvantages of a private blockchain

In developing a private blockchain, enterprises lose many of the attributes that make a blockchain powerful. The version of a ‘blockchain’ they will inevitably end up creating will have very little difference to a conventional permissioned database while at the same time inheriting all the challenges and vulnerabilities associated with securing and managing that.

The advantages of a public blockchain

Using the public blockchain as an external timestamp server means an enterprise can enhance the security and integrity of their internally managed databases in numerous ways. For example, by constructing a Merkle tree out of their data, an entire set of business activity can be securely summarised as a 32-byte value.  Scheduling an attestation of this value to the blockchain means many of the timestamping and data verification properties inherent to the public blockchain can be realised, while at the same time never exposing any sensitive details of the data.

Enhancing data privacy on a public blockchain

Other techniques such as masking can allow for the mutation of a data entry before it’s published to the blockchain. The details for this mutation scheme are kept securely within the enterprise, and the data can be easily converted back into its original form in the event of an audit, where these timestamped attestations can be used to verify the integrity of the internal records maintained by the enterprise.

Case study: banking records on a public blockchain

Imagine that multiple times a day a bank timestamped attestations of transactional activity that occurred on its payment network. It could then have an hourly granularity on anomalies in its accounting and a secure audit could be performed in a millisecond with the click of a button.

Leveraging the blockchain in this fashion comes with very little overhead, as pushing a 32-byte value as a data payload in a transaction adds no more than a fraction of a cent to the overall cost of the transaction.

When an enterprise publishes these ‘data proofs’ to the chain, as that data payload is not evaluated by the nodes to determine the validity of a transaction transferring funds, the data can be mutated or summarised, meaning there is no need to expose sensitive information.

In this respect, the company has now leveraged the major advantage of a blockchain-based system while simultaneously mitigating any of the security challenges and overheads of setting up their own private blockchain. Their legacy database systems may be simply plugged into an API endpoint that automatically creates that summary value and has it notarised by the miners on the network.

Having a public timestamp server allows enterprises to work smarter rather than harder to enhance their internal business practices. This is the whole intention behind the creation of blockchain with its data capabilities and flexible scripting language, allowing any type of transaction to occur for any lawful use case.

Latest News

Stay in the loop

News, tips, guides, and industry best practices

Useful eBooks to download

Expand your knowledge about BSV and blockchain technology.

usecase_testimonials

What the BSV blockchain is and why it is the infrastructure for the data economy (eBook)

Learn how the BSV blockchain can be used as infrastructure for a data economy in this informative ebook. Discover the benefits of using BSV for data storage, micropayments, and smart contracts. Download now and stay ahead of the curve in the ever-evolving world of blockchain technology.

usecase_testimonials

Unleash the value of Extreme Scale data with the BSV blockchain

Unlock the true potential of your data with the BSV blockchain. In this eBook, you'll learn about the traditional problems with data and how intermediaries lead to inefficiencies. Discover the detrimental effects of data silos across an industry value chain and the lack of native ways to transmit payments with data. Understand why the BSV blockchain is the best solution for implementing a blockchain solution and explore use cases of how it can solve data problems. Download now to start taking control of your data.

usecase_testimonials

The BSV blockchain an enterprise cybersecurity framework (eBook)

Learn how to protect your business against cyber attacks with our eBook. Discover how the BSV blockchain meets and exceeds critical information security requirements, including the CIA triad and the five core functions of CSF. With its trustless and resilient architecture, BSV is the future of cybersecurity

usecase_testimonials

Enterprise blockchain products using the BSV blockchain (eBook)

Unlock the full potential of enterprise blockchain with our comprehensive guide on using the BSV blockchain. Discover the unique properties of BSV that set it apart from other enterprise-scale blockchains and learn about the wide range of applications and products that can be built using BSV, from healthcare to eSports and beyond.

usecase_testimonials

BSV blockchain: what it is and how it restores the promise of enterprise blockchain (eBook)

Discover how the BSV blockchain restores the promise of enterprise blockchain in our eBook. Learn how to overcome the 'blockchain trilemma' and achieve scalability, security, and decentralisation for your organisation's implementation. Stop struggling with fragmented implementations and data silos and get the 'real' blockchain deal with BSV.

usecase_testimonials

Your introduction to the Metaverse (eBook)

Unlock the potential of the Metaverse with our eBook. Learn about the past, present and future of this immersive world and discover the opportunities it presents for big tech, multimedia software, gaming, art, entertainment, communications, advertising and more. Discover what enterprise leaders, government officials, and developers should know and do about the Metaverse to become early adopters.

usecase_testimonials

Revealed: The fallacy of private, permissioned blockchains

Discover the truth behind private, permissioned blockchains in our eBook. Learn about the complex problem of Internet's walled gardens, the benefits of a native digital cash system, and the reality of permissioned blockchain for enterprise and government. Understand why the best way to secure data is to keep it in the public eye with public blockchain technology. Download now to learn more about the fallacy of private, permissioned blockchains.

usecase_testimonials

What is Blockchain? (eBook)

Looking for an intro to blockchain technology and its applications for your projects? This eBook streamlines the concept of Blockchain by comparing it to other commonly used data management systems so you can gauge how to use it for your enterprise or government project.

usecase_testimonials

What is Bitcoin? (eBook)

Are you an Enterprise Leader or Government official doing your due diligence on Bitcoin? Although Bitcoin has many aspects in common with other data management systems, it is its differences that translate into unique benefits for organisations.

usecase_testimonials

The Next Era in Miner Economics: Embracing Coopetition and Infrastructure

Explore the history and current state of miner incentives, from the race for hash power to the upcoming reward halving events.

usecase_testimonials

What the BSV blockchain is and why it is the infrastructure for the data economy (eBook)

Learn how the BSV blockchain can be used as infrastructure for a data economy in this informative ebook. Discover the benefits of using BSV for data storage, micropayments, and smart contracts. Download now and stay ahead of the curve in the ever-evolving world of blockchain technology.

usecase_testimonials

Unleash the value of Extreme Scale data with the BSV blockchain

Unlock the true potential of your data with the BSV blockchain. In this eBook, you'll learn about the traditional problems with data and how intermediaries lead to inefficiencies. Discover the detrimental effects of data silos across an industry value chain and the lack of native ways to transmit payments with data. Understand why the BSV blockchain is the best solution for implementing a blockchain solution and explore use cases of how it can solve data problems. Download now to start taking control of your data.

usecase_testimonials

The BSV blockchain an enterprise cybersecurity framework (eBook)

Learn how to protect your business against cyber attacks with our eBook. Discover how the BSV blockchain meets and exceeds critical information security requirements, including the CIA triad and the five core functions of CSF. With its trustless and resilient architecture, BSV is the future of cybersecurity

usecase_testimonials

Enterprise blockchain products using the BSV blockchain (eBook)

Unlock the full potential of enterprise blockchain with our comprehensive guide on using the BSV blockchain. Discover the unique properties of BSV that set it apart from other enterprise-scale blockchains and learn about the wide range of applications and products that can be built using BSV, from healthcare to eSports and beyond.

usecase_testimonials

BSV blockchain: what it is and how it restores the promise of enterprise blockchain (eBook)

Discover how the BSV blockchain restores the promise of enterprise blockchain in our eBook. Learn how to overcome the 'blockchain trilemma' and achieve scalability, security, and decentralisation for your organisation's implementation. Stop struggling with fragmented implementations and data silos and get the 'real' blockchain deal with BSV.

usecase_testimonials

Your introduction to the Metaverse (eBook)

Unlock the potential of the Metaverse with our eBook. Learn about the past, present and future of this immersive world and discover the opportunities it presents for big tech, multimedia software, gaming, art, entertainment, communications, advertising and more. Discover what enterprise leaders, government officials, and developers should know and do about the Metaverse to become early adopters.

usecase_testimonials

Revealed: The fallacy of private, permissioned blockchains

Discover the truth behind private, permissioned blockchains in our eBook. Learn about the complex problem of Internet's walled gardens, the benefits of a native digital cash system, and the reality of permissioned blockchain for enterprise and government. Understand why the best way to secure data is to keep it in the public eye with public blockchain technology. Download now to learn more about the fallacy of private, permissioned blockchains.

usecase_testimonials

What is Blockchain? (eBook)

Looking for an intro to blockchain technology and its applications for your projects? This eBook streamlines the concept of Blockchain by comparing it to other commonly used data management systems so you can gauge how to use it for your enterprise or government project.

usecase_testimonials

What is Bitcoin? (eBook)

Are you an Enterprise Leader or Government official doing your due diligence on Bitcoin? Although Bitcoin has many aspects in common with other data management systems, it is its differences that translate into unique benefits for organisations.

usecase_testimonials

The Next Era in Miner Economics: Embracing Coopetition and Infrastructure

Explore the history and current state of miner incentives, from the race for hash power to the upcoming reward halving events.

usecase_testimonials

What the BSV blockchain is and why it is the infrastructure for the data economy (eBook)

Learn how the BSV blockchain can be used as infrastructure for a data economy in this informative ebook. Discover the benefits of using BSV for data storage, micropayments, and smart contracts. Download now and stay ahead of the curve in the ever-evolving world of blockchain technology.

usecase_testimonials

Unleash the value of Extreme Scale data with the BSV blockchain

Unlock the true potential of your data with the BSV blockchain. In this eBook, you'll learn about the traditional problems with data and how intermediaries lead to inefficiencies. Discover the detrimental effects of data silos across an industry value chain and the lack of native ways to transmit payments with data. Understand why the BSV blockchain is the best solution for implementing a blockchain solution and explore use cases of how it can solve data problems. Download now to start taking control of your data.

usecase_testimonials

The BSV blockchain an enterprise cybersecurity framework (eBook)

Learn how to protect your business against cyber attacks with our eBook. Discover how the BSV blockchain meets and exceeds critical information security requirements, including the CIA triad and the five core functions of CSF. With its trustless and resilient architecture, BSV is the future of cybersecurity

usecase_testimonials

Enterprise blockchain products using the BSV blockchain (eBook)

Unlock the full potential of enterprise blockchain with our comprehensive guide on using the BSV blockchain. Discover the unique properties of BSV that set it apart from other enterprise-scale blockchains and learn about the wide range of applications and products that can be built using BSV, from healthcare to eSports and beyond.

usecase_testimonials

BSV blockchain: what it is and how it restores the promise of enterprise blockchain (eBook)

Discover how the BSV blockchain restores the promise of enterprise blockchain in our eBook. Learn how to overcome the 'blockchain trilemma' and achieve scalability, security, and decentralisation for your organisation's implementation. Stop struggling with fragmented implementations and data silos and get the 'real' blockchain deal with BSV.

usecase_testimonials

Your introduction to the Metaverse (eBook)

Unlock the potential of the Metaverse with our eBook. Learn about the past, present and future of this immersive world and discover the opportunities it presents for big tech, multimedia software, gaming, art, entertainment, communications, advertising and more. Discover what enterprise leaders, government officials, and developers should know and do about the Metaverse to become early adopters.

usecase_testimonials

Revealed: The fallacy of private, permissioned blockchains

Discover the truth behind private, permissioned blockchains in our eBook. Learn about the complex problem of Internet's walled gardens, the benefits of a native digital cash system, and the reality of permissioned blockchain for enterprise and government. Understand why the best way to secure data is to keep it in the public eye with public blockchain technology. Download now to learn more about the fallacy of private, permissioned blockchains.

usecase_testimonials

What is Blockchain? (eBook)

Looking for an intro to blockchain technology and its applications for your projects? This eBook streamlines the concept of Blockchain by comparing it to other commonly used data management systems so you can gauge how to use it for your enterprise or government project.

usecase_testimonials

What is Bitcoin? (eBook)

Are you an Enterprise Leader or Government official doing your due diligence on Bitcoin? Although Bitcoin has many aspects in common with other data management systems, it is its differences that translate into unique benefits for organisations.

usecase_testimonials

The Next Era in Miner Economics: Embracing Coopetition and Infrastructure

Explore the history and current state of miner incentives, from the race for hash power to the upcoming reward halving events.

Ready to add blockchain solutions to your business or government agency?

Send us a message and let us know about your needs. Please contact

Join Our Community

Stay updated with the BSV Blockchain Association's latest news and events.
Subscribe to our weekly newsletter.