Public vs private blockchains are two distinct types of blockchain networks, each offering unique features in terms of accessibility, security, and scalability. Understanding their differences is essential for choosing the right solution for your business or project.
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Blockchain technology is widely adopted for developing Cryptocurrency, NFT, and crypto tokens. However, not all blockchain works similarly. Moreover, Blockchain technology can primarily be categorized into two main types: Public blockchain and Private blockchain technology.
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Public vs Private Blockchains: Which One is Right for You?
Public Blockchains Advantages
Security: Security is the primary concern of public blockchain networks. Any transaction in a public blockchain network is immutable because the changes cannot be altered or removed once added. Additionally, transaction validity is recognized when the majority agrees that the transaction is valid, thus making it secure from external tampering.
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Transparency: The public blockchain solution is implemented on open-source computing codes, thus making the transactions wholly transparent and verifiable.
Anonymity: Anonymity is considered the biggest flaw of a public blockchain.
Public Blockchain Disadvantages
Power Consumption: Public blockchain networks generally have high power consumption.
Scalability: Public blockchain is less scalable because the transaction speed impacts the scalability.
Private Blockchain Advantages
Complete Privacy: Private blockchain is not publicly available and has more restrictions.
More centralized:
Private blockchains are more centralized than public blockchains.
High Efficiency and Faster Transactions:
Private blockchains have more efficiency and faster transactions because the nodes are distributed locally. So, there are fewer nodes to participate in the ledger.
Better Scalability:
Private blockchain is scalable because it has high efficiency and faster transaction speed.
Public and Private Blockchain Comparison Chart
Here’s the comparison in a table format:
| S.No | Basis of Comparison | Public Blockchain | Private Blockchain |
|---|---|---|---|
| 1 | Access | In a public blockchain, anyone can access, read, write, and participate. It is a permissionless blockchain. | In a private blockchain, reading and writing are done upon invitation. |
| 2 | Decentralized vs. Centralized | Decentralized. | Centralized. |
| 3 | Order of Magnitude | The order of magnitude of a public blockchain is generally lesser because it is lighter and provides transaction throughput. | The order of magnitude is generally more significant than the public blockchain. |
| 4 | Native Token | Yes | Not Necessary. |
| 5 | Speed | Slow | Fast |
| 6 | Transactions per Second | Public blockchain has a lower transactions per second. | Private blockchain can handle more transactions per second. |
| 7 | Security | More secure | Less secure |
| 8 | Energy Consumption | Consumes more energy due to extensive electrical resources. | Consumes less energy and power. |
Narinder Sharma is a highly skilled Full Stack Developer with a deep passion for Web3 technology and blockchain innovations. With a strong background in Fintech API development, smart contracts, and decentralized applications (dApps), he is committed to building scalable and secure Web3 solutions. Narinder stays at the forefront of emerging tech trends, bridging the gap between traditional software development and the decentralized future.
🚀 Passionate about smart contract development, DeFi, NFTs, and Layer 2 scaling solutions.📈 Dedicated to pushing the boundaries of Web3 adoption and blockchain infrastructure.