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Understanding Public Blockchain Vs Private Blockchain

Blockchain technology has revolutionized the world in recent years. Businesses can now handle data in a more secure manner. It is clear that blockchain will continue to have a significant impact on business operations in the next decade.

As blockchain technology continues to gain ground in various industries, its innovative applications are growing exponentially. Despite its importance to the cryptocurrency industry, it is rapidly gaining acceptance in other, more traditional industries as it becomes increasingly useful. The way blockchains operate differs from one to another. Various types of blockchains exist, some of which are private, while others are public.

Both private, as well as public blockchains, have different roles to play in business. In which case, how can you choose which is most appropriate for your organization? Let’s compare the two concepts in order to help you decide on this crucial question.

What is a public blockchain?

Public blockchains are those that are open to the public and can be joined by anyone without special permission. Anyone who joins this network can read, write, and participate in it.

What is a private blockchain? 

A private blockchain is accessible by invitation only and anyone who wishes to access it must request permission from its governing body. The blockchain allows users to write, read, and audit it based on their access levels.

Decentralization in public vs private blockchains

Among the two, public blockchains are immutable and decentralized in nature. Upon validation, entries can’t be changed or deleted, so users can trust that their transactions won’t be tampered with.

In the case of private blockchains, although organizations implement distributed ledger technology, they never make their data public. Since entries can be edited by the owner in private blockchains, they offer relatively less decentralized security than public blockchains. 

Where exactly are public and private blockchains used?

Public Blockchain

A public blockchain is primarily a B2C solution. The most popular cryptocurrencies such as Bitcoin, Litecoin, and Ethereum, use public blockchains. In near future, public blockchains are most likely to be deployed by governments for maintaining healthcare records or as a voting mechanism. Transparency and anonymity are key characteristics of these platforms.

Private Blockchain

A private blockchain is more of a B2B solution. The access level of each user on a private blockchain is determined by the type of identity they possess. The use of these solutions allows organizations to control the resources and activities that employees engage in. Private blockchains are more energy efficient compared to their public counterparts and also enable faster transactions.

Hire professional services of Dappsmint, a leading blockchain development company. We have experience in working on both Public and Private chains such as Ethereum, Binance, Polygon, Hyperledger and other Blockchains.Our skilled team of developers have experience working on Frontend and Backend with the languages such as Solidity, Web 3, Rust, React JS, Node JS and Fullstack.

Comparing Public Vs Private Blockchain

Let’s evaluate which private or public blockchain suits your needs now that we have covered the fundamentals.


Depending on how they operate, public and private blockchains have different authority models. Public blockchains operate on a decentralized system, where there is no central authority monitoring them. There is an even distribution of power between the various user groups. However, private blockchains only partially decentralize power. All system operations are managed by a single authority at the top of the network.

Who can access

There are huge differences in access between private and public blockchains. Open-source platforms, where there are fewer restrictions, are better suited for the public version. Every user can check the ledger at will and participate in decision-making. On the other side, a private blockchain sets limitations on access. Those who have been authorized to enter the network have access to it, but it is not available to the general public.

Transaction charges

Unlike private blockchains, public blockchains largely deprive users of resources since they are not allocated based on the number of users. Performance in the network is significantly slowed down by the excess number of nodes on the network. Because of this, transactions take longer to process, resulting in higher costs. Private blockchains, however, have fixed resources for users, and an increase in transactions does not increase costs.


Public blockchains are usually the best choice if you are looking to reach full consensus. There are no differences between users when it comes to the nodes and permissions of the network. As a result, every user joining the network can access and contribute to the ledger in a consensus manner. In contrast, private blockchains work differently, with a central authority determining who has access to them.

Speed of transaction

A key consideration when it comes to the debate about private vs. public blockchains is transaction speed. In a private blockchain, only a few nodes take part in a  transaction. Consequently, the resources do not get too constrained, meaning the transaction speeds remain constant.

Public blockchains, however, have no limit on the number of nodes. Hence, if the users carry out too many transactions, it might slow down the process. The speed and efficiency is generally the same at the initial stages.

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Data control

You will have the option read and write in a public blockchain that provides a common ledger. However, after it is documented, participants cannot undo the action or make changes to it. On the other hand, a single governing entity has the provision to write on the ledger in a private blockchain with a limited set of nodes.

System efficiency

There are significant dissimilarities between public and private blockchain when it comes to system efficiency. In the public blockchain, participants can access all the nodes in the network. This leads to an increase in the number of processes which may slow down the whole network. Private blockchains operate with a limited number of nodes and transactions which makes them more stable. Resultantly, system efficiency is better in a private blockchain than in a public blockchain.


One of the most defining factors of a blockchain in terms of security and authenticity is its immutability. In a public blockchain, blocks that have been written and inserted into the chain cannot be changed or removed. This process makes the public blockchain more reliable despite its open nature. 

Private blockchain, on the other hand, is partly immutable. It is prone to data breaches or manipulation as the central authority has access to add or remove blocks from the chain.

So, there it is. A detailed analysis of private vs public blockchain can always be undertaken to determine the compatibility of your industry with these blockchains. The above-mentioned points should definitely be a helpful guide for your foray into blockchain. What do you think about it? Do let us know.

If you are looking for an experienced team for blockchain development services, don’t hesitate to reach us at 

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