There are so many blockchain networks out there that it can be a daunting and costly experience when you want to transact. Making a knowledgeable decision is essential for a successful transaction. Knowing the right network based on your needs can save you a significant amount of time and trouble in the long run. This is especially true considering the sheer number of available platforms. Let us break down the basics of networks for you, to help you understand better. Primarily there are two types of blockchain networks, namely public and private networks.
Public networks are open networks that allow anyone to participate in the network, which means anyone can join the network and read, write, or participate within the blockchain. Transacting or running applications on this network necessitates a cryptocurrency payment which is often called ‘gas fees’. Bitcoin and Ethereum are the two largest public blockchain networks, but there are several secondary networks available as well.
Some of the main benefits of using public networks are high security (due to the mining 51% rule), openness for all, anonymity in nature, full transparency and gives the user’s full empowerment as there is no central authority looking over every transaction or build. Public networks also of course offer the very basic benefits of blockchain which are immutability and it is decentralized, as the responsibility of maintaining the network is solely on the nodes and not a centralized entity.
A private blockchain is a permissioned blockchain, in other words, it is managed by a network administrator and those who want to use/build on them, need consent to join the network. In a private blockchain, there are one or several entities which control the network which could mean that it relies on third parties to transact. Only the entities participating in the transaction would know about the transaction happening and no one else.
Some of the benefits of private networks include full privacy, higher efficiency and faster transactions (as there are a lot fewer nodes participating and they are distributed locally), and better scalability. However, private networks are mostly centralized and more prone to risks, and data breaches and hence are seen as less secure. A few examples of private blockchains are Hyperledger and R3 Corda (which are mostly used by banks).
Which blockchain platform should I use?
Most users would normally only have access to applications built on public blockchains as private blockchains are only accessible to those who are directly related to specific projects. Hence almost all cryptocurrencies are on public networks. One of the most popular and established blockchain networks is Ethereum. While Ethereum coins can be utilized as cryptocurrency, Ethereum is also utilized as a platform for developing smart contracts and decentralized applications. Ethereum is built on smart contracts, code-based automation programs stored on Ethereum that implement a linear action when certain conditions are fulfilled.
At Paywong, we accept all Ethereum-based cryptocurrencies (among others) including stablecoins such as USDT and USDC. So those who are in the Ethereum-based ecosystem can pay for goods and services easily through Paywong (other cryptocurrencies on main networks are also accepted). All transactions are executed through smart contracts and are non-custodial hence allowing instant and safe payouts to the merchants using Paywong.
Paywong launched a payment gateway with characteristics like an intuitive dashboard for managing funds, e-commerce integrations, and an invoicing system that generates a payment link that anyone can share. For the first 5,000 signups, they are currently offering a lifetime 0.5% merchant transaction fee. Book a demo to learn more, and you’ll be accepting cryptocurrency as payment from your customers in no time.
About The Company
Paywong is a product of Walawong Solutions Pte Ltd — a Web3 startup based in Singapore. We are on a mission to simplify crypto payments for businesses by leveraging the power of blockchain technology.