Private vs Public Blockchains: Use Cases and Trade-offs

Imagine a technology that shares information across many linked servers worldwide. That’s blockchain! It’s decentralized, cutting out middlemen. Its key benefits include security and transparency, making it pretty popular lately. People who build tech and pour funds into it are drawn to blockchain since it can revolutionize numerous sectors.

Blockchain trends

Did you know there are several types of blockchains? This blog will discuss two common types: private and public blockchains.

Private vs Public Blockchains

Public blockchains are open networks that allow any user to participate and are permissionless. Anyone can join to read, write, or participate in this type of blockchain.

It is decentralized, as no single body controls the network. Public blockchain data is secure because it cannot be altered once it has been validated on the blockchain.

Private blockchains are managed by an administrator, and users must obtain permission to join the network, making it a permissioned blockchain. The network is controlled by one or more central entities, so users rely on intermediaries to transact. Only the entities involved in the transaction will have the details of it, and others will not be able to access them, which means, transactions are private.

Read more: What are Blockchain Layers 

Pros and Cons of a Public Blockchain


  • Users are authenticated using a public key.
  • Crypto data cannot be modified once recorded on the blockchain.
  • It is hard to hack this network due to the high number of nodes.


  • Transactions that need to be modified will require a new transaction to be placed with the changes detailed.
  • Users can lose access to the network if the private key is lost.

Pros and Cons of a Private Blockchain


  • They can scale business operations quickly due to fewer nodes.
  • More throughputs can occur as they are usually smaller networks.
  • There are no costs to placing blocks on these blockchains.


  • They require central intermediaries to validate transactions.
  • They have significant costs related to maintenance and security.

Use Cases of Private Blockchains

Supply Chain

Private blockchains in the supply chain industry offer more safety and privacy. They aid in tracking assets, keeping records of who owns what, and logging shared records. This helps key supply chain partners like shipping services and buyers. They can trace products from where they started to where they end up.

Financial services

In finance, businesses can use private blockchains to identify users and comply with regulations using smart contracts.


Blockchains can be used in healthcare to track and safeguard patient data. It can also help to chronologically log patient claims, reducing duplication, using its distributed ledger technology.

Use Cases of Public Blockchains

Public blockchains typically host crypto tokens and NFTs the most. Bitcoin, the earliest crypto, introduced peer-to-peer global transactions. Other uses include voting and fundraising. Voting gains more trust using public blockchains. 


Both private and public blockchains offer their own unique benefits. Which one to choose depends on a crypto project’s goal. Think of the future of blockchains as a blend, where you can create a blockchain by mixing features from both private and public versions.

Companies wouldn’t need to worry about choosing the perfect blockchain; they could just improve their work process by using aspects of both. In the future, hybrid solutions will probably be the favourites of businesses planning to surpass their rivals.

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