How permissioned private blockchain is differ from centralised system?

Question

What is the difference between a private blockchain and a centralized system? Both seem to be the same especially in case of the permissioned private blockchain. If there are not many nodes, What is the need to create a decentralized system?

In the case of the public blockchain, it seems to be a good idea not to have a centralized architecture as there are many identities involved.

Answer 1

A blockchain is always more secure than a Centralized system and is beneficial for several reasons.

If you have some sensitive data you don't want to lose it. Blockchain can act as a backup service for your data.

A node goes down the data is still there, that easy. For a private blockchain, it builds trust. Imagine a finance company or a bank. Since the customers have a copy of the data and it's not centrally controlled by the bank they would trust it more. Also, have a look at smart contracts. They are one of the key points that makes a private blockchain extremely powerful.

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