Public vs Private Blockchain

Blockchain technology has taken the earth by storm over the previous few years. it’s given businesses a replacement way of handling data and doing so securely. there’s little question that within subsequent decade we’ll see blockchain still impact business operations. Public vs Private Blockchain

There are effectively two kinds of blockchains – public and private . Each of these types features a special role to play in business. But how do i know which one will better suit your own organization’s purpose? Here we take a deep dive and compare the two concepts to help you decide between public and private blockchain.

What is public blockchain?– Public vs Private Blockchain

A public blockchain, because the name suggests, could also be a public portal. It means anyone can join: it is a shared network with no restrictions on participation. This was essentially the first quite blockchain to make its presence felt within the shared network space. A public blockchain is true for you if you’re trying to seek out a completely decentralized system. On the flip side, it does become a challenge to incorporate public blockchain within the enterprise blockchain network: having said that, there is definitely plenty in its favor, as we’ll see in additional detail below, including the granting of equal rights to every participant and thus the safety issue.

Benefits of public blockchain

Here are variety of advantages that public blockchain has over the private variety.

Maximum security

Each platform that’s a neighborhood of the overall public blockchain is supposed to figure with maximum security. Too often, shared networks are victims of online hacking attacks, which is why public blockchains exerting to require care of a high standard of security protocols.

Open for everyone 

One of the key assets of a public blockchain is its open environment. Anyone, regardless of location and type of device, can log into the system, because all you’d like is just a stable and reliable Internet connection. Since it’s hospitable everyone without restrictions, you’ll use this environment to reap the blockchain technology benefits during a totally secure and reliable portal.

Anonymous nature

One of the reasons the overall public blockchain has won over numerous enthusiasts is thanks to its anonymous nature. Yes, it is a secure open platform where you’ll make transactions properly and efficiently, but at the same time, you are not required to reveal your real name or your identity so on participate. If your identity is securely protected, nobody can track your activities on the network.

No regulations required

There aren’t any specific rules for the overall public blockchain regarding network server usage. you’ll create this platform with none limitations. this is often ideal for consumer platforms where the blockchain isn’t limited to internal networking.

Truly decentralized

For all public blockchain companies, true decentralization is one of the core attractions. This feature is usually absent within the private blockchain domain. there is no single central platform that maintains the network: instead, it operates as a distributed system where every user features a replica of the ledger. Maintenance activities are performed from different nodes and thus the ledger is updated on a consensual basis.

Complete transparency

There is nothing to beat full transparency in any shared network system. The policy here is simple: if you’ve a reproduction of the ledger, public blockchain companies will make the system completely visible to others. As a user, you will have full access to the ledger at any given time. This does away with discrepancies or grey areas and eliminates any chances of corruption within the network.

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The public blockchain is immutable. What does it mean? Basically, this refers to the thought that when blocks are created and inserted into the chain, there is no because of alter, modify, or delete them. This makes it impossible for anyone to regulate the network. If any user wants to vary the block, they go to wish to start out a replacement separate chain.

Complete power to user

In the other network chain, users are bound by sort of protocols, rules, and regulations. things is kind of different during a public blockchain. Since there is no central authority maintaining the network, users are given complete freedom to work with the system and contribute their ideas.

Disadvantages of public blockchain

As well as their pros, public blockchains even have their share of cons. as an example , the actual fact that they are unregulated means they are not suitable to be utilized in any internal system. In other words, they’re difficult to use for projects that have strict criteria to follow. What’s more, their anonymous nature can make them vulnerable to infiltration by people who wish to use the network for illegal activities.

Public blockchain examples

  • Bitcoin blockchain
  • Ethereum network
  • Litecoin

What is private blockchain? – Public vs Private Blockchain

A private blockchain is particularly used for developing internal networking within a limited group of users. It differs from its public counterpart in its mode of management. it’s always managed by a centralized system, with a network administrator sitting at the highest of the network. To utilize this type of blockchain, users need permission to hitch the network.

The main idea here is that a central entity controls how the blockchain operates or functions. this means dependence on third-party systems to run the show. Also, only the precise users who have access to the blockchain and are involved within the transaction would see what’s happening. These private transactions cannot be accessed by the opposite participant within the blockchain.

Benefits of private blockchain– Public vs Private Blockchain

Fast speed and better efficiency

Public blockchains allow all users to need part within the network: this compromises their efficiency and speed. On the other hand, a private blockchain uses as many resources as required and thus is quicker and more efficient.

Complete privacy

Network sharing at the enterprise level often requires an increased level of privacy for data confidentiality reasons. If this is often often one of your requirements, then a private blockchain is your best-suited option.

Empowering organizations

Private blockchains are usually aimed toward empowering businesses rather than individuals. Every organization or enterprise relies on a strong network to support its processes. Since private blockchains have a smaller network initially, there are fewer participants. This makes it easier to manage their ecosystem with less downtime and optimal maximum uptime.

Balanced and stable

Private blockchains are definitely a more stable network option because of the actual fact that only a few of users have access to certain transactions. And since the nodes are allocated to each user group, they provide high stability for the users to work on the network. Private blockchains use fewer nodes than public ones, which significantly improves their performance and simplifies transactions.


Compliance is clearly vital in any industry. Any technology lacking strict compliance protocols goes to hit trouble at some point. Private blockchains follow and incorporate all the compliance requirements into their ecosystem to make the transactions seamless and easy .


Private blockchains can process a far better number of transactions per second since only a few of users are authorized to participate. This reduces the time needed to achieve a consensus.


Together with professional blockchain developers, you’ll scale your private blockchain supported your requirements. Since only a few of nodes can control the network, a centralized system supports faster processes and simplifies decision-making.

Completely legal activity

Private blockchains are reliably shielded from illegal activities. this is often often primarily because of the actual fact that access to this network is restricted and requires a rigorous authentication process to enter it. this means that any criminal intrusion into the network is often filtered out. For a corporation environment, this feature is all the more valuable. Since only verified users are inside the system, the likelihood of criminal activity is reduced.

Disadvantages of private blockchain– Public vs Private Blockchain

On the downside, the centralized system often encourages an over-reliance on third-party management systems and tends to fall back on the same few industry players.

Private blockchain examples

  • Hyperledger
  • R3 Corda
  • Quorum

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