Blockchain · Question 6 of 6

What is the difference between public and private blockchains?

A public blockchain is open for anyone to use and verify. A private (or permissioned) blockchain restricts who can participate, and is typically run by an organization or group.

Public

Anyone can read the ledger, submit transactions, and often help maintain it. Most well-known cryptocurrencies use public blockchains.

Private / permissioned

Access is limited to approved participants. Businesses sometimes use these for internal record-keeping where openness isn't desired.

Trade-offs

Public chains maximize openness and censorship-resistance; private chains trade that for control and privacy among known parties.

Why it matters

The public/private distinction shapes who can see and control a network — relevant when evaluating business or enterprise blockchain claims.

A practical way to picture it

A public blockchain is like a noticeboard in a town square; a private one is like a shared document inside one company.

Risks & common mistakes
  • 'Private blockchain' marketing can overstate benefits.
  • A private chain controlled by one party reintroduces the trust you were trying to remove.
  • Openness vs privacy is a genuine trade-off, not a free choice.
Put it into practice

See the ecosystem map

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Last reviewed 2026-06-25. This topic can change over time; always confirm current specifics from primary sources.