Blockchain Private VS Public

Published by Botond Grépály on

Private vs Public Blockchain


Public Blockchain:
One of the main ideas is that anyone can access a public blockchain with some knowledge of how one can download the protocol and read, write, or participate in the network. A public blockchain is decentralized and distributed. The best-known public blockchains used for cryptocurrency are Bitcoin and Ethereum: open-source, smart contract blockchains.

Private Blockchain:
A private blockchain is an invitation-only network governed by a single entity. Entrants to the network require permission to read, write or audit the blockchain. There can be different levels of access and information can be encrypted to protect commercial confidentiality. Private blockchains allow organizations to employ distributed ledger technology without making data public. But this means they lack a defining feature of blockchains: decentralization. Some critics claim private blockchains are not blockchains at all, but centralized databases that use distributed ledger technology.


Public Blockchain

Private Blockchain


This is a permission less blockchain and that means anyone can write read or participate in the network.

In this type of blockchain read and write is done upon invitation.


Slow compared to the private one

Fast compared to the public one


A public network is secure due to decentralization and active participation. If there is a higher number of nodes in the network, it is nearly impossible for ‘bad actors’ to attack the system and gain control over the consensus network.

A private blockchain is more prone to hacks, risks, and data breaches/ manipulation. It is easy for bad actors to endanger the entire network. But in the other hand the company or the entity that gives out the permissions can do a background check before giving out the permission.

Energy Consumption

A public blockchain consumes more energy than a private blockchain as it requires a significant amount of electrical resources to function and achieve consensus.

Private blockchains consume a lot less energy and power. Due it is usually containing less participants.


Potential to disrupt current business models through disintermediation. There is lower infrastructure cost. No need to maintain servers or system admins radically. Hence reducing the cost of creating and running decentralized application (dApps).

Reduces transaction cost and data redundancies and replace legacy systems, simplifying documents handling and getting rid of semi manual compliance mechanisms.

We hope we could shine some light on what is the differnece between the two type. If you have any question leave a comment down below.

Categories: Blockchain

1 Comment

Public Blockchain - Kiss Consult · November 5, 2020 at 11:31 am

[…] For comparing Public vs Private Blockchain check out our article. […]

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