Queries about private Blockchain and Mining

+2 votes
Hi, I am quite new with the concept of blockchain, As far as I know to make a transaction valid we need to mine (essentially, solve a complex math problem ). Now lets say I am using blockchain in a private network (semi decentralized network ) and moreover use it as a form of database. As I believe its more safe then any other form of database but slower. Now here are my questions :
1. Do I need to have any form of mining process for the private network?
2. Is it really safer than other form of data base without the mining process ?
asked Nov 6, 2017 by raihu

1 Answer

+1 vote
Best answer
1. If you're using a permissioned blockchain, then the "mining" is not about solving a complex math problem, but just about those permitted entities signing off on the blocks they create, and a consensus scheme to ensure that the chain of blocks represents consensus between those entities. Please see the section 'Mining in MultiChain' on page 7 of the white paper to understand the MultiChain consensus algorithm:


2. If the blocks in your permissioned blockchain are generated by multiple nodes, which are under meaningfully different control, and there is an appropriate consensus algorithm – then yes, it is safer than a regular database because no individual node (or small group of nodes) is able to retroactively modify or delete past transactions. That is indeed the point of using a blockchain instead of a regular database – to decentralize control and therefore make the transaction history much harder to corrupt.
answered Nov 7, 2017 by MultiChain
selected Nov 8, 2017 by raihu
Thank you very much.