Private and Public Blockchains
There are private and public blockchains. On public blockchains (Bitcoin, Ethereum, Avalanche), all the information is open source and thus publicly available. Data on public blockchains is also decentralized, which means that the data from the transactions is stored on many computers, referred to as nodes. Nodes are distributed around the globe, and there’s no specific party or authority to control the network.
In private blockchains, the number of nodes and parties that can access stored data is typically limited to a single or a few organizations, shared internally and thus not publicly available.
Asset Leveraging via Staking
In essence, asset leveraging through staking will provide security to many of the next-generation blockchains. Investors will eventually be able to participate in asset leveraging through staking by delegating tokens to pools.
The role of the validator is to participate in different tasks to further secure a blockchain network, such as ensuring transactions are not flagrant (e.g. no double-spending). Protocols like Ethereum and Avalanche accept tokens from validators as a type of ‘skin-in-the-game’ collateral. In turn, validators are rewarded in tokens for acting in line with the rules of a network, participating in network validation, and being available.
Blockchain in Two Minutes