What is the Difference Between Public and Private Blockchains?

While blockchain technology changed the world, not all blockchains are created equal. There are two major categories of blockchains: public and private. And for any person who is at least somehow related to the crypto space, understanding the differences between these kinds of blockchains will be important. That is exactly what we shall tell you about in the following Dex-Trade Academy post-describing to you the most crucial differences that distinguish a public blockchain from a private blockchain.

What is a Public Blockchain?

A public blockchain is an open, decentralized network in which, for all intents and purposes, anyone can participate. On this type of network, anyone can join the network, see transactions occurring, and help in its ongoing maintenance. Examples include Bitcoin and Ethereum.

Key Features of Public Blockchains:

1. Decentralization: The network relies on no central authority.

2. Transparency: All transactions are totally visible.

3. Security: While public blockchains are secure, transactions may be processed more slowly because of their decentralized nature.

What is a Private Blockchain?

A private blockchain is a network in which access and control over transactions that are taking place are limited. Companies typically use private blockchains for internal processes, as it gives them even more control.

Key Features of Private Blockchains:

1. Controlled Access: Only invited people can join.

2. Speed: Transaction times are faster because there are fewer participants.

3. Privacy: Transactions are only visible to those who are granted access to them, keeping confidentiality.

Main Differences Between Public and Private Blockchains:

1. Access: Public blockchains are open to anyone, while private ones are reserved.

2. Control: Public networks are decentralized, whereas private blockchains are centrally managed.

3. Transaction Speed: The private blockchain transactions are faster due to the limited number of users.

Which Blockchain is Better?

There’s no definitive answer. Public blockchains are great when it comes to decentralization and transparency; hence, they are perfect for cryptocurrencies. For the sake of control and privacy, private blockchains work better for organizations.

Conclusion

Both of them are needed for various reasons when their intents are considered, and they have several benefits accordingly. While the focus of public blockchains is on the aspect of transparency, private blockchains aim to control and be efficiently run.

 

Within Dex-Trade Academy, we provide you with all the means to understand the model of Blockchain: from the very beginning to the most experienced traders. Our materials will help you get your head around Crypto.