By: Sameer Zubairi | 5 min read | 11/01/2019

Compare Public And Private Blockchains

A blockchain network is fully transparent, continuously updated, decentralized and extremely secure against hacking. However, these conditions can vary depending on the network being public or private. Although transactions on both types of networks are executed in the same way, the criteria for authorizing participants is very different. Knowing these discrepancies can be invaluable when finding new cryptocurrency investment opportunities.


A public blockchain network allows anyone to participate on the ledger. This means that anyone is able to make a transaction on the network or even become a miner and run consensus algorithms to verify transactions. Since the distributed structure of the blockchain prevents hacking attempts while remaining transparent, the security of the network is not compromised. However, because public blockchains allow anyone to participate, the computing power and time required to execute transactions is significantly increased. This is because there are literally thousands of nodes that must validate the transaction before it can be entered in the blockchain.

Furthermore, public blockchains offer their users little to no privacy. Anyone’s wallet and transaction history is visible through their public wallet address. So, if you send someone your wallet address to receive Bitcoin, that person can basically view your wallet’s entire transaction history on a Bitcoin explorer application. Bitcoin explorers are online search engines for wallets and transactions of a particular cryptocurrency. There is the obvious upside of being able to verify whether a transaction occurred or not. Therefore, transparency can be a double-edged sword.


Unlike a public blockchain, a private blockchain requires the user to receive an invitation before being able to participate on the network. These networks are often called Permissioned Networks. A regulatory authority, usually the Network Starter, is designated with the responsibility of authorizing invited users as participants on the blockchain. This authority can also be established as rules or criteria created by the Network Starter, which, when met, authorize participants. To be a part of a private blockchain, you are often welcome to apply online, however, most commonly, you must know a participant on the network to get an invitation.

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