Difference Between Public and Private Blockchain | Private Vs Public Blockchain

Difference Between Public and Private Blockchain | Private Vs Public Blockchain

By Suffescom Solutions

April 20, 2022

Difference Between Public and Private Blockchain | Private Vs Public Blockchain

If you had asked someone about blockchain a few decades ago, you would have been derided and dismissed as trivial. Blockchains have grown into various varieties depending on their architecture and setup over the last several years.

The material stored on the blockchain's blocks and the activities conducted by the many participants on the blockchain networks can be controlled based on how the blockchain is built and how it is anticipated to execute the desired business function.

Public and private blockchains are the two most prevalent types. Numerous cryptocurrency networks and individual businesses heavily utilize them.

Enterprises are perpetually unsure about public and private blockchain technologies. Here, we'll delve deeper into the features of public and private blockchains and compare them. Once you understand the similarities and differences between them, you can easily choose the one that is most suited to your needs.

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What Is Public Blockchain Technology?

A public blockchain network is one that anyone, at any moment, can join. Public blockchains give all nodes equal access to the blockchain, the ability to create new data blocks, and the ability to validate existing data blocks. In general, there are no limits on participation. Additionally, anyone can access the ledger and participate in the consensus process.

Currently, public blockchains are largely used for bitcoin exchange and mining. On these public blockchains, nodes "mine" for cryptocurrency by solving cryptographic equations to create blocks for the transactions requested on the network. In exchange for their efforts, miner nodes receive a small quantity of bitcoin. The miners essentially operate as new-era bank tellers, facilitating transactions in exchange for a fee (or "mine").

For instance, Ethereum is a public blockchain platform.

Characteristics of Public Blockchains


Public blockchain firms consistently construct each platform with the utmost security in mind. In reality, businesses and organizations are subjected to cyber hacks daily. It's becoming a significant impediment as time passes.

Additionally, it results in billions of dollars in annual losses.

However, companies can easily avoid hacking difficulties with all the security procedures inherent in a public blockchain. Additionally, they can ensure actual value or improved data quality for every project.

Open Environment

As you may already know, the public blockchain is open to everybody, as its name implies. As a result, you can access these platforms regardless of your location. All you'd need is a computer and a reliable internet connection. As a result, you will always benefit from blockchain technology. Additionally, you can utilize it to do business in a secure atmosphere. Additionally, mining can earn you money.

Anonymous Nature

Everyone is anonymous on a public blockchain. There is no reason to use your true name or identity; everything will remain concealed, and no one will be able to follow you based on that.

Because it is a public domain, this provision is primarily for protecting one's personal property. Many criminals prefer to pay for unlawful acts on the dark web with bitcoin. This is also one of the public blockchain's downsides.

No Regulations

Nodes on a public blockchain are not required to follow any regulations. Thus, there is no end to how one might utilize this platform for their advancement.

Complete Transparency

Nothing, however, comes close to a completely transparent platform. Essentially, public blockchain companies construct their platforms to be completely transparent to anyone on the ledger.

This means that you can access the ledger at any time. As a result, there is no room for corruption or inconsistency. In any case, everyone is responsible for maintaining the ledger and participating in consensus.

Authentic Decentralization

True decentralization is achieved with a public blockchain. This is something that private blockchain networks completely lack. Because everyone has a copy of the ledger, it also has a distributed nature.

Essentially, this sort of blockchain does not have a centralized entity. As a result, nodes are completely responsible for network maintenance. They are updating the ledger using a consensus algorithm to improve fairness.

Additionally, these aspects ensure that the system maintains a decentralized environment.

Complete User Control

Typically, any network requires the user to adhere to many rules and regulations. However, this is not the case with public blockchain networks. Because there is no central authority monitoring their every step, all users are empowered.

Additionally, these platforms are accessible to the public, so no corporation can prevent you from downloading the nodes and participating in the consensus.

This is something that private blockchain platforms do not offer. Additionally, if you examine private blockchains, you'll notice that users do not have complete freedom. Our ICO experts can help you enter the crypto space.


When data is stored on the blockchain, it cannot be altered.


As opposed to a client-server model, the database is not centralized, and all nodes in the blockchain participate in transaction validation.

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What is a Private Blockchain Technology?

A network administrator administers a private blockchain, and participants must obtain permission to join the network, making it a permissioned blockchain. A central authority selects who is eligible to be a node in a private blockchain. The central authority does not always grant each node equal rights to execute functions.

The network is controlled by one or more entities, which results in a dependency on third parties for transactions. Only the parties to the transaction will know about it, while others will be unable to access it, i.e., private transactions.

Private blockchains are only partially decentralized due to their restricted public access. Ripple, a business-to-business virtual cryptocurrency exchange network, and Hyperledger, an umbrella project for open-source blockchain applications, are two instances of private blockchains.

Characteristics of Private Blockchains

Complete Confidentiality

Private blockchain solutions are typically more concerned about privacy than public blockchain systems. If you're seeking a solution that can provide your organization with the highest level of anonymity, this is it.

While this may appear a bit extreme, it is the reality. Enterprises are constantly confronted with security and privacy concerns. Additionally, they deal with such sensitive data daily. If even one of them is disclosed, it might suffer a catastrophic loss.

That is why a business must utilize a network capable of securing sensitive information. This is where private blockchains enter the picture.

Increased Efficiency and Speed of Transactions

While public blockchains were the first, they are notorious for their inefficiencies. Why? That is because they are the ones who introduce everyone to the network. As a result, as more individuals attempt to use the features, the platforms cannot support them.

As a result, it accelerates swiftly. On the other hand, private blockchain networks are restricted to few participants. They frequently have specific responsibilities to accomplish. As a result, they have no method of using additional resources and slowing down the platform.

Private blockchains utilize environmentally friendly consensus algorithms to reach an agreement.

Increased Scalability

Private blockchain solutions are reliable, and they will provide you with the peace of mind you desire. Essentially, each blockchain platform requires you to pay a charge to conduct a transaction. However, the cost might significantly increase on public platforms due to the pressure from nodes seeking transactions.

When there are too many transaction requests, completing them takes time. Additionally, as time passes, the charge climbs significantly. However, this is not the case with private blockchain platforms. Because only a small number of people can request transactions, there are no delays.

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Public vs. Private Blockchain

  • The public blockchain enables everyone to join and participate in the complicated blockchain network's essential functions. On the other side, private blockchains ensure that participants' entries are regulated and validated by operators who have the authority to amend, veto, or delete any essential blockchain entries. Said, a network that is public/private+closed is a permissioned network, whereas a network that is public/private+open is permissionless.
  • Permissioned blockchains are gaining popularity among users due to their ability to assign certain permissions to specific individuals within the network.
  • Popular cryptocurrencies such as Litecoin, Bitcoin, and Ethereum often operate on a public network. The use, however, is not confined to cryptocurrency. Governments can employ public blockchain networks to create a secure voting platform or automate healthcare information management. Public blockchains are more of a business-to-consumer solution.

Permissioned Blockchains Use Cases

Whether public or private, both types of blockchains are permissioned. They frequently limit a user's access to a network to a small number of nodes. Additionally, it limits a user's rights on the network's nodes. Other users on the same blockchain are aware of the permissioned blockchain user's identity. Several popular frameworks adhere to the permissioned blockchain development protocol, including Corda, R3, Quorum, B3i, and Hyperledger.

These blockchains have gained popularity as a result of their well-designed governance structures. They are well-organized and assist administrators in maintaining data or updating the network quickly. They are significantly quicker than public blockchain networks.

Consortium/federated blockchains fall within this group when it comes to implementation. External parties are not permitted to participate in these networks. It provides customers with increased scalability, making it an ideal alternative for organizations needing command and control. A public blockchain is completely free, whereas a permissioned blockchain is not.

However, the expense is justified due to the transaction's rapidity and efficiency. Additionally, permissioned blockchains consume little energy, which results in cost savings and benefits the environment.


Due to scalability, computation and energy power, transaction validation speeds, and security, private blockchains look more viable and promising for business adoption than public blockchains. However, a closer examination of private blockchains reveals that they fundamentally contradict the feature that makes blockchain solutions attractive and promising — decentralization.

Each business organization must decide which blockchain type to adopt, public or private, considering their respective company strengths and limitations, aims, and objectives.

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