I am being told to use a private blockchain instead of the public one in an attempt to cut gas costs. But I was hit with the problem of the value of ether and tokens in this private blockchain.
I am implementing an ERC20 Token to be used in value exchanges between wallets that are controlled by our backend system.
In a public chain, the token value is measured by ether which has a certain known value in USD. In case it is a private chain this value ( of ether and consequently erc20 tokens ) will have to be set manually.
So my question is: is the value of ether, in the private blockchain, set manually based on some off-chain calculations? is using ERC20 tokens in a private blockchain when it s meant to serve as Fiat currency equivalent, a design flaw?