What is a Private Blockchain?

What is a Private Blockchain
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Before moving on to the full comparison, let’s see what a private blockchain is. This is a special type of blockchain technology in which only a single organization has authority over the network. That means it is not open to public participation.

In reality, all private blockchain solutions will have some sort of authorization scheme for the identity entering the platform. Basically, custom blockchain solutions enhance these platforms for a company’s internal network system.

Therefore, you will need the confidence to use this platform. Without trust between nodes, this network model will not work. Thus, only employees within a business can access it.

Then you might think how is that decentralized? Well, technically not. A private blockchain is not fully decentralized like public blockchain platforms

However, with private blockchain platforms, you will have regulations that other platforms do not have. Therefore, all nodes must follow certain rules to ensure the smooth flow of a company.

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There is also a lot of discussion regarding private blockchain platforms. Basically, people believe that the authorities can void a transaction if they see fit. But it’s unlikely.

Also, since businesses need privacy, private blockchain use cases seem like a perfect fit in this case. Without proper secrecy, their rivalry can enter platforms and leak valuable information to the press.

This can greatly affect brand value in the long run. Therefore, in some cases, companies need a great deal of privacy.

Top Features

 High efficiency

  • While the public blockchain comes first, they tend to lack inefficiency. Why? Well, because they introduce everyone to the network. As a result, when more people try to use the features, it consumes too many resources for platforms to back up.
  • Thus, it slows down rapidly. On the other hand, a private blockchain only allows a handful of people on the network. In many cases, they even have specific tasks to complete. So there’s no way for them to take extra resources and slow down the platform.
  • To do this, private blockchains use eco-friendly consensus protocols to reach an agreement.
  • Let’s take a look at the next feature in this private vs public blockchain comparison guide.

Complete Privacy

  • Unlike public blockchain platforms, these solutions tend to focus on privacy concerns. If you’re looking for technology that can offer the highest level of privacy for your business, this is the one for you.
  • It may seem a bit extreme, but it’s the truth. Businesses always deal with security ad privacy issues. Moreover, they also deal with such sensitive information on a daily basis. If even one of them is leaked, it could mean a huge loss for the company.
  • That’s why a company needs to use a network that can secure this information. This is where private blockchains come into play.

Empowering Organizations

  • Private blockchain solutions work to empower businesses as a whole, rather than individual employees. In reality, companies need great technology to back up their processes. Moreover, these solutions are mainly for the internal systems of a business. This is one of the best use cases of private blockchain.
  • Since companies are quite capable of providing backup and security, you should start implementing your own blockchain solutions based on that.


•           Private blockchain solutions are stable and you will get the peace of mind you want from them. Basically, you have to pay a certain fee to complete a transaction on every blockchain platform. However, on public platforms, the fee can increase drastically due to pressure from nodes requesting transactions.

•           When there are a lot of transaction requests, they take time to complete. Moreover, the fee increases significantly as time increases. But not on private blockchain platforms. There are no delays as only a handful of people can request a transaction.

Why Should You Use It?

Low Fees

Transaction fees on private blockchain platforms are extremely low. Unlike public blockchain platforms, the transaction fee does not increase with the number of requests. Therefore, no matter how many people request a transaction, fees will always remain low and accurate.

Therefore, there are no hidden costs.

Money Saving

Maintaining a private blockchain is quite simple compared to public blockchains. platforms use only a few resources. But on the other hand, the public blockchain takes a lot to support the massive crowd of platforms.

But that doesn’t mean it’s very cheap or something.

Anyway, let’s look at the next in this private and public blockchain guide.

No Illegal Activity

As you know, private blockchain platforms have authentication processes before logging into the network. What this process does is filter out intruders trying to break into the system.

I have already told you that public blockchain solutions have a bitter history in connection with criminal activity. Frankly, this is not something you want in a corporate setting.

Thus, only verified people can enter the system and get rid of all illegal activities.

Now let’s see the main comparison in this private vs public blockchain guide.


If you are looking for the perfect technology for your corporate company, private blockchain may be the right choice. Why? Well, in businesses you have to follow a lot of rules and regulations. And if you don’t follow them accordingly, there are certain consequences. In reality, it allows you to summarize all the rules and your employees must abide by them.

The Ultimate Comparison


On a public blockchain, you will get real decentralization. This is something quite absent in private blockchain networks. It creates a distributed nature just as everyone has a copy of the notebook.

On the other hand, the private blockchain has great authority over the system.

Then you might think how is that decentralized? Well, technically not. A private blockchain is not fully decentralized like a public platform.

This is where public and private blockchain differs in a smaller way. While private blockchains can be partially decentralized, they still work best for the enterprise environment.


In reality, all private blockchain solutions will have some kind of authorization scheme to determine who is accessing the platform. Therefore, only selected members can access the network.

On the other hand, in a public blockchain network, anyone can join at any time.  Moreover, anyone can view the ledger and participate in the consensus process.

Let’s see the next point of comparison in this specific blockchain versus the public blockchain guide.

Transaction Cost

Public blockchain platforms tend to have higher transaction costs compared to private blockchain platforms. In reality, the enormous number of nodes across platforms allows performance to degrade. As a result, it takes a lot of time to process requests. As a result, prices rise drastically.

On the other hand, transaction fees on these platforms are extremely low. Unlike public blockchain platforms, the transaction fee does not increase with the number of requests. Therefore, no matter how many people request a transaction, fees will always remain low and accurate.

Anyway, check out the next point in this public and private blockchain guide.


In a public blockchain, nodes have no restrictions on participating in the consensus process. As a result, everyone is free to participate and enjoy the benefits of the platform.

On the other hand, the private blockchain decides in advance who can and cannot participate in the consensus. As a result, many nodes do not really participate in the process.

Transaction Speed

For a comparison of a private blockchain versus a public blockchain, we can look at transaction speeds. In reality, both platforms can perform the same up to a certain point. But after this point, the processing speed changes drastically.

Generally, anyone can request a transaction on a public blockchain. Therefore, when there are too many requests on the network, the network slows down relative to the processing speed. Then even processing a transaction can take a lot of time.

Data processing

Let’s see the data processing of these two technologies for a comparison of the private and public blockchain. On a public blockchain, anyone can read and write the ledger. But you cannot change it once it is in the notebook.

But in a private blockchain, only a single organization can read and write the ledger. Moreover, he can only write a handful of nodes in the notebook. It’s more of a similar situation for both public and private blockchain instances.


This is the endpoint of the public and private blockchain guide. In reality, the public is less efficient compared to private blockchain platforms. Therefore, they always remain efficient no matter what.


The public blockchain network is completely immutable. But what does this mean? This means that once a blockchain reaches the chain, there is no way to modify or delete it. Thus, it ensures that since no one can modify a particular block, it does not take advantage of the others. In some cases, authorities may delete a particular block if it seems appropriate.


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