What Are the Main Differences Between Private and Public Blockchains?

Since its inception in 2009, Blockchain technology has been used in various industries, including finance, healthcare, and logistics. Blockchain Developers are in high demand these days. You can also become a Blockchain Developer by applying for an online Course like Blockchain Training Course.

Blockchains are of two types: Public and Private Blockchains. Private Blockchains are designed for use within a specific organisation or group. In this article, we explain the differences between Public and Private Blockchains along with their use cases.

Table of Contents

  1. What are Public Blockchains?
  2. What are Private Blockchains?
  3. Differences Between Public and Private Blockchains
  4. Use Cases for Public and Private Blockchains
  5. Conclusion

What are Public Blockchains?

Public Blockchains are decentralised networks that allow anyone to participate in and validate transactions. These networks are not owned or controlled by a single entity, making them accessible to anyone with an internet connection. Public Blockchains rely on a consensus mechanism to ensure the ledger’s integrity, where participants validate transactions and earn rewards for their work.

Examples of public Blockchains

Bitcoin: Bitcoin is the first and most famous public Blockchain. It was developed in 2009 by Satoshi Nakamoto, whose identity is yet to be known to the public. 

Ethereum: Ethereum is another popular public Blockchain that allows developers to build decentralised applications (dApps) on top of the Blockchain.

What are Private Blockchains?

Private Blockchains are similar to public Blockchains in that they are distributed ledgers that store transaction data. Still, they are controlled by a single organisation or group of organisations rather than being open and accessible to anyone. Private Blockchains are used primarily in enterprise settings where data privacy and control are essential.

Examples of private Blockchains

Hyperledger: Hyperledger is an open-source private Blockchain project led by the Linux Foundation. 

Corda: Corda is another popular private Blockchain platform developed by R3. Both platforms are designed for enterprise use cases like supply chain management, healthcare, and finance.

Differences Between Public and Private Blockchains

Public Blockchains and private Blockchains differ in several key characteristics. Public Blockchains are decentralised, transparent, and immutable, while private Blockchains are centralised, permissioned, and often designed with scalability in mind.

Differences in security and privacy

Public Blockchains are generally considered more secure than private Blockchains due to their decentralised nature, which makes them more resistant to attacks and manipulation by a single entity. However, public Blockchains are less private than private Blockchains, as all transactions are visible to anyone on the network. Private Blockchains, on the other hand, are designed to be more private, as only authorised parties can access the network and participate in validating transactions. However, this increased privacy comes at the cost of transparency and accountability.

Differences in governance and consensus mechanisms

Public Blockchains rely on a consensus mechanism that validates transactions. In addition, it also maintains the integrity of the ledger, typically through proof of work or proof of stake. Governance on public Blockchains is typically more decentralised, with decisions made by a community of participants. On the other hand, private blockchains are often governed by a single organisation or group of organisations. The consensus is often achieved through a more centralised mechanism, such as voting or consensus among a smaller group of authorised participants.

Overall, public and private Blockchains serve different purposes and have different strengths and weaknesses. Public Blockchains are ideal for applications requiring transparency, accountability, and data integrity, while private Blockchains are better suited for enterprise use cases prioritising data privacy and control. As technology evolves, new solutions may emerge to bridge the gap between public and private Blockchains and create new use cases.

Use Cases for Public and Private Blockchains

Public and Private Blockchains have several use cases like Cryptocurrencies, digital assets and healthcare. In this section, we explore them.

Use cases for Public Blockchains

Public Blockchains have several potential use cases, including:

Cryptocurrencies and digital assets: They are used to create, transfer, and store cryptocurrencies and digital assets. Some examples of Public Blockchains are Bitcoin and Ethereum. 

Decentralised applications (dApps): Public Blockchains can be used to develop and run decentralised applications, or dApps, which run on a decentralised network instead of a centralised server.

Supply chain management: Public Blockchains create a transparent and secure supply chain management system, where each step in the supply chain is recorded on the Blockchain, allowing for greater visibility and traceability.

Use cases for Private Blockchains 

Private Blockchains have several potential use cases, including:

Financial services: Private Blockchains are well-suited for financial services use cases, such as cross-border payments and settlement, due to their scalability and faster transaction processing times.

Healthcare: Private Blockchains can store and share patient data securely and privately, allowing healthcare providers to access patient data in real-time while maintaining patient privacy and control over their own data.

Government: Private Blockchains can be used by governments for several use cases, such as voting systems, identity management, and secure record-keeping.


By reading this article, you would have understood the differences between Public and Private Blockchains. Apart from this, you would have also learned about the various use cases of these two different Blochains.