In the previous few articles, we discussed what blockchain technology is and how it works. Blockchain can be of two different types, private blockchain and public blockchain. It is really important to understand the difference between the public and private blockchain. Depending on the business industry one can choose a specific type of blockchain. Some examples of public Blockchain are bitcoin blockchain, ethereum blockchain whereas private blockchain is hyperledger, ripple and many more.

Understanding private blockchain and public blockchain
Understanding private blockchain and public blockchain

Why do we need public blockchain and private blockchains?

Due to several integrity issues, and privacy issues, many times, companies do not want to share data with anyone or want only specific people to validate the transaction and add it in the blockchain. Private blockchain let us do the same. A private blockchain is useful for the companies or groups of companies, which do not want to share any information. Most of the time people do want to use such a blockchain when it contains sensitive data. 

For example, in the education sector, for a group of institutes, a private blockchain would work since it would be managed by only one organization. The benefit would be, it will bring more trust among the people regarding the certificates of the students. Here, the validation and adding up the data of certificate would be only available for the issuing authority. Hence there would be a great amount of trust that the data of certificates is valid and not tampered.

And, if we talk about the public blockchain, the best industry according to me would be the supply chain management. Also, several industries are using it.  supply chain management holds several stakeholders, from the seller to the buyer. And it is required to validate each and every tracking information about the product. 

Hence, these two were examples of the public and private blockchain use cases. In the next section, we will discuss some of the main differences between the public and private blockchain.

Understanding Private Blockchain- A to Z.

A private blockchain is one or the other type of blockchain technology that is managed by a single authority. Only authorised people are able to join that blockchain for reading and writing the data. So the main objective of the private blockchain is to build some form of authorization scheme that would let the user enter into the blockchain. And it is well suited for the internal networking of the authority. Hence, a public user needs to trust this network, because, without trust, it won’t work. Only certain employees in the company would have a chance to get access to that blockchain.

So Here, A big question Arises, Doesn’t the private blockchain is centralised.

Well, the answer is yes, the private Blockchain is not decentralised completely like the public blockchain. But still, in the company, it works in a decentralised way. Also, the private blockchain comes with the regulations and all the nodes in the network need to obey such rules and regulations. Well, you might find several controversies for private blockchain, because many times, the controlling authority may override the transaction. For big enterprises that do need privacy in their network, private Blockchain would work.

Some features of Private Blockchain are as follows.

  • Highly Efficient.
  • Since, it does not need to have a huge amount of resources for validating transactions, such as electricity and much more. Hence it is a highly efficient and sustainable solution. Only a few nodes have the authority to validate the transactions. So, all the nodes do not need to compete with each other to validate transactions.
  • Brings more stability.
  • It is more stable, as there are only a few numbers of nodes that take care of the validation. The transaction validation time remains the same. And it does not charge a huge amount of fees for validating the transactions.
  • Empowers several enterprises.
  • Private blockchains are promising technology since it empowers all the employees in the company. All of them have access to the data and using such technology in business would lead to the best working of the enterprise. 

Advantages of Private Blockchain.

  • Low cost.
  • If you know about blockchain, you must have heard about the POW and POS. Generally in a private blockchain, one does not need to give proof of work. as no one is competing with each other to validate the transaction. In private blockchain hence, there is less cost involved for validation of transactions.
  • Fewer Fees.
  • Since, all the miners, rather validators do not need to do the huge computation, hence they charge very fewer fees for validating the transaction.
  • Regulations.
  • A private Blockchain does have a large number of regulations that must be followed by all the participants in the blockchain network.
  • Less Illegal Activities.
  • Since it involves less number of participants, there are minimum chances of illegal activities to take place in the network.

Several examples of the Private Blockchain.

Some of the examples of private blockchain are the following.



Understanding Public Blockchain-A to Z.

Public Blockchains or permissionless blockchain is the legit Blcockhain that follow all the features of blockchain, such as decentralisation and distributed and immutable. In a public blockchain, any individual can join the network. It is a vast network of nodes, which is not bounded by any company. It lets everyone read and write the content on the public blockchain.

Some features of Public blockchain are as follows.

Highly Secure.

It is highly securable, as all the data stored in the blockchain is hashed and immutable, i.e. anyone cannot change the data once stored in the blockchain. Nowadays, since everyone is on the internet, some individuals do take advantage of it and try to hack the data. Such malicious activities can be prevented from introducing the public blockchain.

It is open for all.

Public Blockchain is open for all, anyone can just register themselves and become a part of the blockchain network. It could be used for transferring the funds to other peers or for just validating transactions.

Highly anonymous.

Public Blockchain keeps everyone ‘s identities anonymous, which means that the person does not need to reveal their identity on the blockchain network.

Non regulated.

Public blockchains are not regulated. Hence sometimes, it becomes the double edge sword as anyone can use this platform for betterment. As well as for illegal activities. It does not work on regulations because it brings the restriction in the network. Hence it becomes an internal network rather than an external one.

Reasons to go for public Blockchain.

Here are some best reasons why you should go for a public Blockchain.

  • It brings full transparency in the network. Public blockchains are designed in such a way that everyone has access to the data. And it is fully transparent in nature. Also, it highly avoids malicious activities.
  • Public blockchains are highly decentralized which means that no authority has control over it. It runs with the help of all the nodes available in the network.
  • All the data stored in the public blockchain is immutable. It means that any data stored in the blockchain technology could not be changed or tampered. Only data can be added in the blockchain.
  • Public Blockchain empowers all the users by letting them read and write in the blockchain. All the users do have the privilege to download the blockchain data. Here users do not need to follow any rules and regulations. Hence it is also a two-edged sword. Because due to non-regulations, it leads to criminal activities to happen.

How to decide, which Blockchain technology would be better for your business.

Deciding the nature of blockchain for your business is not a difficult task. You need to consider the following parameters such as.

  • Privacy laws of your business.
  • Nature of Data.
  • Accessibility.
  • A number of companies.

So if you want to decide about blockchain, then you should work on the privacy laws of your business. Like you need to know with whom you will share the data and who all would have access. Based on privacy, you can know if you want to keep transparency or not. If you want to keep data private then a private blockchain would work.

Nature of Data.

So, another main factor which decides about the nature of blockchain is data. Is your data-sensitive or confidential? If you need to share data with any layman, then public blockchain would work else private.


Based on the access of data to people, you can decide which blockchain you need to work on. For example, if you want to share your data with only specific people in the organization, then it is better to use a private blockchain. Since private blockchain would reduce the cost for validation and nodes will charge fewer fees.

The number of companies.

If you have very few companies dependent on your data, then private blockchain would be best. But in case there are several companies dependent on your data and it keeps on changing the public blockchain.


All these factors are basic, but if you are looking to integrate blockchain technology in your business and confused about which blockchain would work. You may contact me for consultation. 

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