Common Differences Between Public And Private Blockchains

As the wide acceptance of blockchain technology’s potential to transform different sectors continues to grow, grasping the fundamental distinctions between these two blockchain categories becomes of utmost importance.

How do these types differ?


Public blockchains provide open and unrestricted access to all members. On the other hand, private type restricts entry, usually requiring explicit permission. These private chains are primarily utilized by designated entities or organizations, with access meticulously governed by an appointed administrator.


Public type is highly decentralized, with no single entity having control. Nodes in such chains are dispersed worldwide, bolstering resilience and providing resistance against censorship attempts. On the contrary, private blockchains lean towards centralization, frequently overseen by a singular organization or consortium. This centralization can enhance efficiency but may come at the cost of relinquishing some of the decentralization advantages.

blockchain categories

Consensus Mechanisms

When speaking about public blockchains, energy-intensive consensus mechanisms like Proof of Work (PoW) or Proof of Stake (PoS) are commonly used to validate transactions. These mechanisms are designed to be secure in an open and trustless environment. In private blockchains, more lightweight consensus mechanisms like Practical Byzantine Fault Tolerance (PBFT) or majority voting may be more efficient for a known and trusted group of participants.


Public type provides transparent transactions and data that anyone can view. The ledger is open, ensuring trust and accountability. In private ones, transparency can be limited. Depending on the design, data may be visible only to select participants.

Use Cases

Public blockchains find their niche in applications such as cryptocurrencies, open-source applications, and use cases where transparency and decentralization take center stage. On the flip side, private blockchains are often employed for corporate solutions, optimizing supply chain management, and scenarios where participants are well-acquainted and trusted, with a strong emphasis on safeguarding data privacy.


Public type boasts considerable security, mainly attributed to their decentralized structure and the significant computational resources required to compromise them. Conversely, the security of private chains relies on the extent of control and centralization implemented, rendering them as secure as the entities responsible for their administration.

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