A Basic Guide On The Comparison Of The Public And Private Blockchain Applications

blockchain applications

A Basic Guide On The Comparison Of The Public And Private Blockchain Applications

Around the globe, debates about the many possible applications of blockchain technology in the corporate sphere are on the rise. There is a solid reason why blockchain technology has become a catchword in recent years. The implications of this technology on a wide range of markets are significant. Several businesses across many sectors, including food, banking, and logistics, are now using blockchain technology.

Despite that, not all blockchains are the same; there are critical differences between public blockchains, which anybody can access, and private blockchains, which are brought about centrally within an organization. Both approaches have advantages and disadvantages for most organizations, but deciding can soon be unnecessary.

In this blog, Sky Potentials UK, the best custom software and blockchain app development company, will discuss the differences between Distributed Ledger Technologies vs. Blockchain, its types, and the advantages of blockchain for business solutions. We will also breakdown down the key dissimilarities between public and private blockchains. So let’s dive into it.

Differentiated Distributed Ledger Technologies VS. Blockchain

blockchain technologies

Before we start, it is essential to make clear misunderstandings between distributed ledger technologies (DLTs) and blockchain.

Distributed ledger technology (DLT) is a decentralized system of database where multiple participants manage and govern all decentralized database services across multiple nodes.

Blockchains are a category of DLT. Both DLTs and Blockchains are digital logbooks of records where data is shared between groups of people over the internet. Yet, there is where the similarity stops.

Most people recognize blockchains as a list of timestamped “blocks” or “data” that users of the network must periodically confirm; in other words, no new block can be added without the agreement of all nodes in the network.

However, not all DLTs involve cryptographic data validation before you can add it to the network. In some DLTs, the administrator has complete control over the network’s administration of the platform’s objectives, framework, and operations.

Commonly, all blockchains are DLTs, whereas all DLTs are not blockchains.

Varieties Of Blockchains

The following are the three categories that define them:

Public Blockchains: These permissionless blockchains are a type of distributed ledger that allows anybody to join as a user, developer, miner, or community member. All dealings and acts here are entirely public and viewable, allowing any interested party to view and control all data at any moment.

Private Blockchains: Often called permissioned blockchains. It allows only certain groups of people to access the network or use their data if they provide the required credentials or identification.

Hybrid blockchains: It combines the best characteristics of public and private blockchains to create a distributed ledger that protects sensitive information while still allowing verified transactions to view it publicly.

Comparison Between Public And Private Blockchains

blockchain apps

Here is the comparison between public and private blockchains:

Magnitude: Compared to public blockchains, which are overloaded by the constant arrival of transactions, private blockchains are quicker and have higher transactional throughput because of the lower volume of transactions that occur on them.

Accessibility: People everywhere can verify data, add to it, and use it in public blockchains. In a private network, only approved users can access the system.

Control: Public blockchains are preferential because network control is distributed evenly among its users, whereas private blockchains concentrate power in the hands of a select group of people.

Security: Decentralization and user participation in a public blockchain contribute to robust security. Because of the limited number of participants in a private blockchain, it is more vulnerable to outside interference.

Essential Functions/Advantages Of Public Blockchains

Advantages Of Public Blockchains

Generally, public blockchains were the original distributed ledger technology that would eventually become blockchains. Anyone in the globe with an internet connection can use them to transmit, receive, and verify transactions, and you can also audit them.

By some consensus mechanism, all network nodes require approval before a transaction for validation. Ethereum Bitcoin, and Litecoin are some famous cases of the several public blockchains presently in use. It most practical benefits are:

Open Access: In public blockchains, everyone in the world can add data, use the data, and participate in the governance of the network.

Distributed Ledger: Public blockchains, which house distributed ledgers, eliminate the need for a centralized server to store data. On the blockchain network, every node is responsible for updating its copy of the distributed ledger and contributing to the verification of new transactions. It’s a step towards reducing the intermediaries required for centralized financial dealings.

Security: Due to public blockchains’ distributed and decentralized design, the likelihood of manipulation, hacks, and attacks is low since it would be hard to simultaneously change all of the copies of databases present on each node in the network.

Anonymity: Users can remain anonymous, a significant advantage of public blockchains. In other words, using public keys as cryptographic identities protect users from prying eyes.

If you wish to create a blockchain app for your company to improve your data security and protect digital information, then approach the best blockchain app development company, Sky Potentials UK. We are the USA’s top-notch blockchain app and custom software development company.

Characteristics And Advantages Of A Private Blockchain

Advantages Of A Private Blockchain

For optimal success, private Blockchains require authorized participation from a select group of users. Typically, the admin or originator of a platform will set the guidelines for joining and accepting new users. Business blockchains are often used internally, with access limited to authorized people.

If outside parties need to be a part of the chain, they are only given access based on how much they need to know. Hyperledger Fabric, Quorum and R3 Corda are the applications of notable private blockchain. Some of the useful advantages of this blockchain are as follows:

Controlled Access: In private blockchains, the administrator has a complete say over who can and cannot use the system. A corporate identity management system aims to verify and authorize new users before granting them access to sensitive company data.

Faster Transaction: Corporate blockchains contain less nodes as compared to public blockchains, letting for quick transaction times. Because fewer participants are required to reach a consensus, processing, and validating transactions or activities performs relatively quickly.

Effective Management and Regulation: One entity controls the entire network with private blockchains. The administrator defines the norms, procedures, methods, and instruments that will be used to maintain the platform daily.

Federation And Consortium Blockchains

Consortium blockchains are closely related to private blockchains. Consortium blockchains differ from private blockchains primarily because a collection of people regulate them instead of a single entity. It is a sub-category of private blockchains, as they express nearly all the characteristics that make them so appealing.

In a nutshell, they provide a cooperative framework for use cases in which rivals in the business world can plan and compete. And boost productivity in a group and the individuals inside it by working together.

A Hybrid Blockchain Is The Best Option

Hybrid Blockchain

With a hybrid blockchain, public and private blockchains are brought together. Many hybrid blockchain implementations incorporate private blockchain privacy and public blockchain security and transparency.

Business owners have a lot more option when determining what information to make public and what to keep private. A public blockchain makes the platform available to anybody worldwide, a private blockchain keeps track of who can make changes to the ledger and who can’t.

Dragonchain is one such well-known product.

Advantages Of Hybrid Blockchains

Advantages of hybrid blockchains are as follows:

Low Transaction Cost: As hybrid transactions where a few numbers of highly-powered nodes confirms it, the operation of this blockchain requires very little in the way of computational resources, energy, or fees to keep it up and to run.

Fused Privacy & Communication: In the same way that private blockchains excel at resolving concerns with corporate data privacy, they struggle to communicate with the outside world. With the assistance of hybrids, businesses can set up blockchain models that allow for secure yet straightforward contact with the public, including their many shareholders.

Closed Ecosystem Workings: Methods of operation in a self-contained ecosystem hybrid blockchains’ primary benefit is their superior performance in isolated environments. Companies adopting blockchain technology can feel confident that their data will remain private.


Private Blockchains are more suitable for business use than public ones due to factors including processing and energy power, scalability, transaction validation times, and security.

Yet, a closer inspection of private blockchains would show that they fundamentally depart from the one feature of blockchain solutions that makes them appealing and promising—decentralization. And hybrid blockchains, which combine private and public blockchains, are the superior option to both.

Last but not least, each company must decide between public, private, and hybrid blockchains based on its unique set of strengths, weaknesses, goals, and ambitions.

Feel free to check out what we offer to build your company’s best IoT technology strategy. Don’t wait to contact the USA’s best custom software and blockchain app development company.

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