Public Blockchain vs Private Blockchain

Public Blockchain Vs Private Blockchain

Blockchain technology is a relatively nascent technology that has caught on like wildfire. All most all businesses are adopting the technology in one form or the other. Blockchain application development is done on both public and private blockchain platforms depending on the utility and desired characteristics of the end product. This blog post will give you an insight and a comparison on the Public Blockchain vs Private Blockchain.

What is Blockchain?

Blockchains comprises a growing list of records called blocks and cryptocurrency links these blocks to one another.

It is an open, verifiable ledger that can record transactions between two parties effectively post verification and validation. Initially, blockchains were developed as the ledger for recording bitcoin transactions in order to solve the problems related to double spending of digital currency.

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Today, the blockchain technology has expanded to all sectors of business like smart contracts, notary, international money transfer, logistics, Initial coin offering and much more.

What are private and public blockchains?

In a public blockchain, anyone can join the network. The network is open and allows anyone to participate in the network, execute the consensus protocol and maintain the ledger. This openness of the network implies that there is no privacy in transactions. They are also known as permissionless blockchains.

The private blockchain restricts the entry of members into the network. One must receive an invitation to be a part of the network and the network starter validates the entry of a new member by setting up a set of rules. They are also called permissioned blockchains.

Businesses would set up a permissioned network and restricts who can participate in the network and in which transactions. Participants would receive an invitation or permission to join. They would add further participants to the network or there would be a regulatory authority who could issue licenses for participation. At times, there would be a consortium which makes the decisions instead.

Read the blog on future of blockchain technology

Features of Public Blockchain

High Security

Public or permission less blockchains guarantee a high level of security. Businesses have to deal with cyberattacks regularly. It has become a big problem in recent times. And these attacks have cost billions in losses worldwide. These attacks can be effectively blocked with the security protocols deployed in public blockchains. They can secure the integrity and quality of data. Security protocols may vary according to platforms, but it can be reliably said that public blockchains are more or less robust.

Open Environment

The public or permissionless blockchain is open for all, just as the name indicates. So, irrespective of where you are, you can access these blockchains. You would only need access to the internet.


Everyone is anonymous in a public blockchain. You don’t need to use your actual name or identity here. Your personal details are well protected, and you cannot be tracked. This feature is what enables criminals to use cryptocurrencies as a payment method for the trading of illegal goods and services. The technology is just a platform. Blockchain technology cannot be cast in a bad light because people choose to use its features for illegal purposes.

No Regulations

Public or permissionless blockchains don’t post any regulations for the nodes to follow. There is no limit to how this platform can be used. A downside to this is that enterprises can’t function in a non-regulated environment.

Without regulations, it’s hard to satisfy all the needs of enterprises.

Features of Private Blockchain

High Efficiency

Public blockchains are known to be inefficient because of the increased number of users. As the number of users on a blockchain increases, its efficiency tends to go down. But private or permissioned blockchains only permit a limited number of people in the network. So, the resources of the platform can be maintained at optimum efficiency to prevent slowing down of the platform.

Maximum Privacy

Private or permissioned blockchain focuses more on privacy. If the privacy of the enterprise is your primary concern, then this is the best option. Enterprises often deal with security and privacy concerns. That’s why a company must use a system like a private or permissioned blockchain which provides maximum security of their data.

Empowering Enterprises

Private or permissioned blockchain solutions empower businesses as a whole. Companies require the latest technologies to back up their processes. Deploying private blockchains for the internal systems of an enterprise optimizes their workflow.


Private blockchain solutions are highly stable. Because of its closed nature and the limited number of people using it, the stability of private blockchains is not compromised in any way.

Public Blockchain Vs Private Blockchain

How different is public blockchain versus private blockchain or permissioned blockchain vs permissionless blockchain from each other? Well, it is safe to say the differences are not so stark anymore. Nowadays, there are visible pros and cons or difference between public blockchain and private blockchain but with time, these lines will definitely blur.

Before we begin to compare the private blockchain and public blockchain, let us discuss why there is a need for them.

Well, the blockchain technology rose to the limelight due to its transparency in the validation of transactions. But the boon turned into bane soon, when people started worrying about the privacy of the data stored in such public blockchain and private blockchain were born.

Get to know about digital identity management with blockchain technology

Let us begin with the similarities that exist in private blockchain vs public blockchain. Public blockchain versus private blockchain are decentralized peer to peer networks and the mutual consensus determines the validation of the transactions. The ledger is immutable and it is almost impossible to hack the data.

How do public blockchain and private blockchain differ?

  • The major point of difference public blockchain vs private blockchain arises when it comes who is allowed to participate in the network and validate the transactions.
  • In case of a public blockchain, anyone can join the network since it is open. These networks ensure greater participation in the network through incentivizing mechanism. An example of one such network is the Bitcoin network which is one of the largest public blockchain networks in use today.
  • A major drawback of the public blockchain is that they require a substantial amount of computational power for the maintenance of a network that is this large.
  • Another major disadvantage is the openness of the network which supports a very weak notion of security and leaves no room for privacy in transactions.
  • Private blockchains solve this problem effectively by setting up permissioned networks which have restricted entries.
  • Public Blockchains has a lot of privacy concerns and private blockchains eliminate them to a convincing extent.
  • Know how to build permissioned blockchain applications

    Conclusion: Which one to vouch for?

    Well, we definitely can’t pitch one with the other. The best option is to strike a balance between the two. Interoperability is the key to overcome the hurdles faced by public blockchain vs and private blockchain by enabling them to interact with each other and exchange values across platforms.

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