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Difference between Public and Private Blockchain

  • Vrinda Mathur
  • Feb 04, 2022
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Blockchain the new age technological development has made life simpler and more systemised for most of the people and industries out there. Blockchain is a ledger constructed in a digital format distributed across the network of computer systems, creating a block. 


Each number of blocks is depicting a transaction and as and when there is a new transaction is added to the ledger. These transactions are recorded with an unalterable cryptographic structure named, Hash. Private and Public blockchain are further types of blockchain technology available. Let us understand these one by one.


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What is Public Blockchain?


A public blockchain is an open network that does not require any permissions. Anyone is allowed to join the server, read, write or participate within the blockchain network. It is a decentralized form of network and no single entity controls the network. Security of the data stored on public blockchain networks is maintained as the data is unalterable once it has been recorded in the ledger. 


A public blockchain has a substantial amount of computational power which is necessary to maintain a distributed ledger at a large scale. In order to achieve a consensus, each node in the network must solve a resource- intensive, complex problem in order to maintain the sync. 


Privacy of transactions under public blockchain networks is almost none. This acts as a major limitation for such a network. Public ledger enables you to see any network at any time though there is no scope for discrepancies as the data once recorded cannot be tampered with later. 


Advantages of Public Blockchain


  • The data stored on public blockchain is easily accessible for all. From verifying the transactions to securing financial data a user can use this network for a number of uses. Transparency is one of the promising features of public blockchain networks. 


  • As known earlier, it is a decentralized ledger multiple nodes are created 


In the network and thus it is difficult for the hackers to crack all the nodes and steal a transaction or a deal. 


  • Since anyone can participate in the security and maintenance of public blockchain, the system sounds more secure. All the participants under the network are empowered to work on the network and validate the transactions in the network without any central authentication required. 


(Recommended blog - Hybrid Blockchain)



What is Private Blockchain?


It is a network managed by administrators and consent is required in order to join the network. There are one or more entities handling the controls of the network which leads to third party reassurance of the data stored. 


In this type of blockchain only the entities performing or participating in the transactions have knowledge about the transactions further leading to privacy of the data entered. 


The users here work on the basis of permissions and controls managed and granted by third parties. A notable example of private blockchain is the Hyperledger fabric. 


The access mechanism could vary: the existing participants can decide the future participants, a regulatory authority could issue a license for participation or an association could make future decisions. 


Advantages of Private Blockchain


  • The access is limited and therefore reaching a mutual consensus is much easier as coThe number of participants is restricted. mpared to  public blockchain networks. 


  • A private blockchain can regulate a higher number of transactions as there are a limited number of people involved in the chain. Unlike the public blockchain which is a decentralized network involving a number of participants. 


  • Private blockchain systems are centralized and thus decision making is faster. It also consumes comparatively lesser amounts of energy and material resources. 


  • In a private blockchain issues like constant alarm or confidence issues are not present. The result validity feature available in public blockchain is not available here as the integrity of data completely depends on the credibility of authorized participants and therefore, responsibility can be easily identified. 


  • Under a private blockchain participants are known and have credentials to have been granted access and be a part of the network. Therefore there are no chances of any contrary impact. 


(Recommended blog- Types of Blockchain)



Public Vs Private Blockchain


Public and private blockchain network can be differentiated on the basis of :-  

Public and Private Blockchain can be differentiated on the basis of:-1.Access2. Consensus 3. Transaction speed 4. Transaction cost 5. Data handling 6. Efficiency 7. Immutability

Differences between public and private blockchain


  • Access


In a private blockchain, the network is controlled by a single organization. This signifies that the public is not invited to participate. To identify which participant/user is joining the network, private blockchains employ an authorisation process. As a result, just a few people have access to the network.


In a public blockchain system, on the other hand, anybody may join; there are no limits on who can participate. Anyone may view the ledger, read it, write on it, and participate in the consensus process.


  • Consensus


In a private blockchain, it is established ahead of time who is qualified to join the consensus and who is not. Participants in a public blockchain, on the other hand, are free to engage and take use of the system's benefits; there are no limits on entering the consensus process.


  • Transaction Speed


Only authorized individuals have access to the transaction process and can participate in it. As a result, the speed remains constant. A public blockchain, on the other hand, allows anybody to see and request a transaction/record. 


Because there are so many customers requesting many transactions, the platform takes a long time to process each one, slowing down the network's performance.


  • Transactional cost


A private blockchain platform has very low expenses. The price does not change dramatically depending on the amount of requests made; it stays consistent, accurate, and inexpensive. 


When compared to private blockchain platforms, public blockchain platforms have a greater transaction cost. In fact, the platform has a large number of nodes, which slows down performance. As a result, responding to the requests takes a long time. As a result, costs spike.


  • Data Handling


Only a single organization may read and write a particular ledger in a private blockchain. Therefore, only a small number of users/participants have access to the ledger. They can even erase a block depending on the ledger's legality. 


As the name implies, this blockchain is open to the public, which means that anybody may view and write on the ledger. However, once completed, this type of ledger cannot be changed or edited.


  • Efficiency


A private blockchain is nearly always efficient since just a few nodes have authorization and access to the ledger. 


Because there are many users accessing the ledger in real-time, public blockchain platforms have scalability concerns. As a result, public blockchain platforms are less efficient than private blockchain platforms.


  • Immutability


As previously established, blocks can be erased from the ledger under certain circumstances. As a result, Private Blockchain is unchangeable (partially). 


We already know that once a block is added to the chain, it cannot be changed or removed. A public blockchain network is therefore completely immutable.


(Take a look at what are the Types of Blocks in a Blockchain Network)





These forms of blockchain networks have significant distinctions. However, in practice, one may access both of these networks at their leisure. Permissioned blockchains are a third type of blockchain. This is a middle ground that allows for the use of both public and private blockchains while also allowing for customisation. 


This sort of blockchain allows anybody to join the permissioned network, but only after their identity has been verified and they have been granted certain permissions to do only specific tasks on the network. If the right features are adopted, both private and public blockchains may be used in a corporate setting.

The final choice, however, is totally up to the individual. Blockchain technology is described as being on the cusp of digital disruption because of its enormous potential. It is considered that if we address the difficulties in a timely way and at an early stage, technology can help to develop the economy

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