I ask this questions is there seem to be 2 flavors of blockchain: 1. Public think bitcoin and ethereum. 2. Private hyperledger, SAP Leonaro, etc. The public network charges for transactions which make it popular with the public. The private network does not charge for transactions which is why it is popular with businesses. Why is there no network that can do both? For example eosio | Blockchain software architecture is trying to make it cheaper to process transactions which I assume is meant to appeal to businesses and consumers. Why cannot a private blockchain such as Hyperledger Sawtooth/ Fabric which are private be free for businesses to use because businesses validate transactions but also accept a token which has value and when a consumer users the token to purchase an item from a business in the network either charge a fee for validating the transaction or do not charge for it.
2 Answers
The public network charges for transactions which make it popular with the public.
It's more complicated than this. Charging for transactions creates an incentive structure for miners. In a public system, where trust between transacting parties doesn't exist, cryptoeconomics comes into play.
The private network does not charge for transactions which is why it is popular with businesses.
It's more complicated than this. The trust model is different, and cryptoeconomics plays a much less important role.
Why is there no network that can do both?
Lots of people use Ethereum privately. Further, lots of people set up their private Ethereum network to run without transaction fees, which can be done by tweaking the code. I'd assume similar things can be done with the codebases of other other blockchains.
But that's missing the point: these are two completely different use cases, to the point where you could claim that "blockchain" technology itself makes less sense for private business networks. Which is where the Digital Leger Technology (DLT) vs. "blockchain" comparison comes in.
See: Blockchain vs. Digital Ledger Technologies (external Consensys link)
For example eosio | Blockchain software architecture is trying to make it cheaper to process transactions which I assume is meant to appeal to businesses and consumers.
At the cost of security. EOS uses a Delegated Proof of Stake consensus mechanism, which increases transaction throughput at the expense of decentralisation. This is like possible with businesses, who own their entire private network, and thus can guarantee security. But popular with customers on a public network? That would depend who you ask.
Why cannot a private blockchain such as Hyperledger Sawtooth/ Fabric which are private be free for businesses to use because businesses validate transactions but also accept a token which has value and when a consumer users the token to purchase an item from a business in the network either charge a fee for validating the transaction or do not charge for it.
It's not entirely clear what you're asking, but it sounds like you're wanting to create interactions between a private network and a public network, which would require some complicated economic/cryptoeconomic design to work.
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Thank you so much for the response. It has bee very helpful.I would like to address your statement about my comment: Why cannot a private blockchain such as Hyperledger Sawtooth/ Fabric which are private be free for businesses to use because businesses validate transactions but also accept a token which has value and when a consumer uses the token to purchase an item from a business in the network either charge a fee for validating the transaction or do not charge for it. Commented Apr 25, 2018 at 17:39
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WOLD THE BELOW BE WHAT I'm talking about? Hyperledger Blockchain Consortium Reveals Hybrid 'Sawtooth Ethereum' Tech coindesk.com/… Commented Apr 25, 2018 at 17:40
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I'm trying to describe is businesses are always going to prefer useing something that is free. For example, it would be too costly to have to pay a transaction fee for a high volume manufacturing company when they wanted to add data to the blockchain. At the same time, businesses want to accept tokens for purchasing their items. Why can't businesses use blockchain/ Hyperledger Fabric for the private networks internal use but have a Fabric token to use when businesses on the private network purchase items from eachother or consumers purchase products from the business? Commented Apr 25, 2018 at 17:44
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It's a fallacy to assume Delegated Proof of Stake lowers security guarantees.– robrigoCommented Apr 26, 2018 at 3:06
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EOS is more decentralized than ETH because the distribution is better. The distribution represents a PoW scheme. 21 active independent producers chosen in an infinite election based on their reputation and ability provides more decentralization when compared to the 11 mining pools that control block production on the ETH network. EOS is decentralized because the community always has the last say in who the active producers on the network are. Due to the wide distribution, no single entity can choose all of the producers.– robrigoCommented Apr 26, 2018 at 3:23
You can run private EOS networks to take advantages of the fee-less transaction feature in a controlled setting.
