Private vs Public Blockchain

This article is discussing the differences and similarities between Private and Public Blockchain.

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Private vs Public Blockchain - Similarities and differences between two types of Blockchain

In this article we are going to discuss two types of Blockchain the Private and Public. These two types of Blockchain chains are used to develop applications for public and private network. Developer should learn the difference and similarities between these two. If you will find many tutorials explaining about Blockchain and Bitcoin but this article is for technical people working on the development of Blockchain based applications.

What is public Blockchain?

The public Blockchain allows anyone to write to the ledger and access it without any restriction. In Public Chain network anyone is allowed to participate. Public Blockchain is used in developing application for public domain where anyone can write to the Ledger without prior authorization.

What is Private Blockchain?

In the Private Blockchain only authorized and authenticated users are allowed to write to Ledger before proper authorization. In Private Blockchain only authorized users are allowed to participate in the Blockchain network. Private Blockchain is used to developed application where only authorized users are allowed to participate.

Similarities between Private and Public Blockchain

Let's first discuss the similarities between these two types of Blockchain.

  • Both these Blockchain are decentralized peer-to-peer networks where each party are maintaining/sharing their ledgers. Data into these ledgers can be appended only and its not updatable.  Blockchain Ledger can only be appended by parties participating in the network.
      
  • In both the Blockchain, data replicas (ledger replicas) are copied and maintained on different servers/network as per the Blockchain technology protocol.
     
  • Blockchain technology guarantees the immutability of the Ledger stored in the system. Even if parties are sending faulty data or the system is accessed by malicious (in case of malicious attack).

Differences between Private and Public Blockchain

Now let's see the Similarities between Private and Public Blockchain.

There difference between these two is based on the accessible of the system and who can write to the system. As earlier Blockchain maintains the Ledger of data in append only format and data to ledger can only be updated. In case of Public Blockchain anyone can write data to Ledger but in case of Private Blockchain only authorized users can perform append to the Ledger.

In Public Blockchain anyone can read the Blockchain network but in its not allowed in Private Blockchain. Private Blockchain authorizes users first to provide access to the Blockchain network.

Private Blockchain Public Blockchain
Authorized users can append to Ledger Anyone can perform Ledger update
Only authorized user can read Ledger Anyone can read Ledger
Only authorized users are allowed to connect to Blockchain network Anyone can connect to the Blockchain network
Private network is closed and one can join by invitation or admin can create account. Public Blockchain is open and anyone can participate.

Advantages of Blockchain

Now lets discuss the advantages of Blockchain technologies and what it offers?

Blockchain offers technologies and platform for creating applications which uses ledgers to store transactional data on the distributed cryptographically secured, fault tolerant Blockchain network. Blockchain ledgers are immutable and it allows the addition of new traction through Ledger append functionality. Here are the advantages of Blockchain:

  • Blockchain network is Fault tolerance
  • Its distributed and it offers Zero downtime
  • Blockchain Ledger is immutable: Data stored in ledger are immutable and saved for ever. Ledger is appended only and new data can be appended to the existing ledger.

Disadvantages of Blockchain

Blockchain network requires substantial amount of processing power to maintain big Blockchain network where very high number of ledgers are managed in distributed environment. System id designed to solve the cryptographic problem which requires lots of processing power.

Blockchain data is open in case of Public Blockchain and it imposes data privacy risk. Organization should think and make their plan before jumping into Public Blockchain network.

Once data is sent to the Public Blockchain network it can't be deleted or pulled back, this is one of major disadvantage of Public Blockchain.

In this tutorial we have leaned the differences between Private vs Public Blockchain. You can find more tutorials at Blockchain tutorials section in our website.