Blockchain technology has transformed how we manage and verify digital transactions, providing a decentralized, transparent, and secure way to record data. At the core of this innovation lie two main types of blockchains: public and private.

While both Blockchain networks rely on the principles of decentralization and immutability, they do have some serious distinctions. There’s a lot of difference between public and private blockchain in terms of accessibility, governance, architecture, and real-world usage. 

In this guide, we’ll break down public vs private blockchain differences​ to help you better understand blockchain types comparison according to different business needs.

Whether you’re a blockchain enthusiast, tech entrepreneur, or simply curious about how dapps work, this blog will serve as your go-to resource for comparing public vs private blockchain.

So, without further delay, let’s begin!

 

What is Blockchain App Development?

Before discussing public vs private blockchain in a nutshell, let’s learn what is blockchain app development in the most simplistic way. The Blockchain is a shared, immutable digital ledger that enables the recording of transactions and tracking of assets within a business network, providing a single source of truth.

It operates as a decentralized and distributed database, where data is stored across multiple computers (nodes), making it highly resistant to tampering or unauthorized changes.

 

 

What is a Public Blockchain?

A public key blockchain is a “permissionless” distributed ledger network that is open to anyone. The public blockchain for businesses allows any individual with an internet connection to join, read, write (submit transactions), and participate in the validation process without needing permission from a central authority.

 

Key Features of Public Blockchain

 

 

i. Permissionless

In public blockchain for businesses, there’s no need for restrictions on participation. Anyone can join, view all transactions, and become a node to validate transactions.

 

ii. Decentralization

The difference between public and private blockchain is that in public blockchain, control is distributed among all network participants. There is no central governing body, making it highly resistant to censorship or single points of failure.

 

iii. Immutability

Another thing to notice when stating public vs private blockchain difference​ is that in public blockchain, after adding the transaction or block of data to the blockchain, it is virtually impossible to alter or delete it due to cryptographic linking.

 

iv. Transparency

According to the stellar blockchain development company, in public blockchain, all transactions are publicly visible and auditable by anyone on the network, ensuring a high degree of accountability.

 

v. Consensus Mechanism

Relies on algorithms like Proof of Work (PoW) or Proof of Stake (PoS) for all nodes to agree on the valid state of the ledger.

 

vi. Pseudo-anonymity

Participants are identified by cryptographic addresses rather than real-world identities, offering a degree of anonymity.

 

Popular Examples

 

i. Bitcoin

The first and most well-known public blockchain, primarily used for peer-to-peer digital currency transactions.

 

ii. Ethereum

A highly versatile public blockchain that supports not only cryptocurrency (Ether) but also smart contracts and decentralized applications (dApps).

 

What is a Private Blockchain?

A private blockchain (often called a “permissioned blockchain”) is a distributed ledger network where participation is restricted.

It is typically controlled by a single organization or a consortium of organizations that determine who can join the network, what roles they have, and what data they can access. According to a top  Blockchain Development Services, here are some of the key 

 

Key Features of Private Blockchain

 

 

i. Permissioned Access

Participants must be invited and/or granted explicit permission to join the network. Identities are usually known and verified.

 

ii. Centralized or Partially Decentralized

While still distributed among authorized nodes, there is often a governing body or a limited number of entities. It controls the network, manages permissions, and can potentially alter or rollback transactions (though immutability can still be high within the authorized group).

 

iii. Faster Transaction Speeds

With fewer participants needing to reach consensus, private blockchains can process transactions much more quickly than public ones.

 

iv. Enhanced Privacy

Data visibility can be restricted to authorized participants, allowing for greater confidentiality of sensitive information.

 

v. Scalability

According to companies providing Web3 development services, private blockchains are easier to scale due to fewer nodes involved in consensus and less network traffic from anonymous participants.

 

vi. Customization

More adaptable to specific business rules and industry regulations as the governing entity has direct control over the network’s protocol.

 

Popular Examples

 

i. Hyperledger Fabric

An open-source, permissioned blockchain framework hosted by the Linux Foundation, designed for enterprise use. It allows businesses to create private networks for specific applications like supply chain tracking or interbank settlements.

 

ii. Corda (R3)

Developed by the R3 consortium, Corda is a distributed ledger platform specifically designed for businesses, particularly in the financial services sector. It focuses on privacy and direct transaction execution between involved parties rather than broadcasting to the entire network.

 

Use Cases and Applications

Here are some of the top real world examples of Permissioned vs. permissionless blockchains: 

 

 

1. Public blockchain Use Cases

While drawing blockchain types comparison, you need to remember that public blockchains are ideal for applications demanding maximum decentralization and transparency.

 

2. Cryptocurrencies & Digital Assets

Application: Powering digital currencies (like Bitcoin) and facilitating the secure issuance and trading of various digital assets (like NFTs). Their open nature allows anyone to participate and verify transactions, removing central intermediaries.

3. Decentralized Finance (DeFi)

According to the companies offering ethereum development services, the DeFi involve the usage of public blockchain, building financial services like lending, borrowing, trading platforms. It operates entirely without traditional banks or institutions, offering greater accessibility and transparency.

 

4. Private Blockchain Use Cases

Before drawing comparisons between public vs private vs consortium blockchain, let’s talk about private blockchain use cases. Private blockchain for businesses are best suited for enterprise applications requiring controlled access, high transaction speeds, and enhanced privacy within a defined group.

 

5. Supply Chain Management

Providing a shared, immutable ledger to track goods and materials from origin to consumer. This enhances transparency, traceability, and reduces fraud among consortium members.

 

6. Healthcare Record Management

Securely managing and sharing sensitive patient data among authorized healthcare providers and insurers. The permissioned nature ensures data privacy and regulatory compliance.

 

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Let’s Understand By Example

 

Core Differences Between Public and Private Blockchains

Here are some of the core public and private blockchain comparisons, striking a balance between brevity and detail:

 

 

1. Accessibility

 

i. Public Blockchain

These are permissionless, meaning anyone can join the network, read all transactions, submit new ones, and even participate in validating them. There are no barriers to entry.

 

ii. Private Blockchain

These are permissioned, requiring users to be invited or pre-approved by a central authority or consortium. Access levels can be configured, so some participants might only have read access, while others can write.

 

2. Consensus Mechanism

 

i. Public Blockchain

They rely on decentralized consensus algorithms like Proof of Work (PoW) or Proof of Stake (PoS) to validate transactions and add new blocks. These mechanisms ensure agreement among a vast number of unknown and untrusting participants.

 

ii. Private Blockchain

They often use more efficient consensus mechanisms such as Proof of Authority (PoA) or Practical Byzantine Fault Tolerance (PBFT). Since participants are known and typically trusted, these mechanisms can be simpler and faster, often involving a pre-selected set of validators.

 

3. Speed and Scalability

 

i. Public Blockchain

Generally slower in transaction processing and can face scalability challenges (fewer transactions per second). This is due to the need for global consensus across a very large network.

 

ii. Private Blockchain

Typically offer much higher transaction speeds and better scalability. With a limited number of known participants and streamlined consensus, they can handle significantly larger volumes of transactions.

 

4. Security and Privacy

 

i. Public Blockchain

Highly secure against manipulation or censorship due to their vast decentralization and cryptographic immutability. However, transactions are usually transparent and visible to all, offering pseudo-anonymity rather than true privacy.

 

ii. Private Blockchain

Secure within their defined network due to access controls and cryptography. They offer enhanced privacy, as data visibility can be restricted only to authorized participants, which is crucial for sensitive business information.

 

5. Governance

 

i. Public Blockchain

Governed by decentralized processes, involving widespread community participation (developers, users, miners/validators) in decision-making regarding network upgrades and protocol changes. This can be slower.

 

ii. Private Blockchain

Governance is typically more centralized, controlled by the single organization or consortium that owns and operates the network. This allows for faster decision-making and easier adaptation of rules and protocols.

 

Advantages of Public Blockchain

 

 

Here are some key advantages of public blockchain that you should know: 

• Decentralization: No single authority controls the network, increasing trust and reducing the risk of manipulation.
• Transparency: According to developers who provide private blockchain development,. All transactions are visible and verifiable by anyone, promoting accountability.
• Security Through Consensus: Secured by proof-of-work or proof-of-stake, making it highly resistant to tampering and attacks.
• Immutability: Once data is recorded, it cannot be altered, ensuring a reliable record of events.
• Open Participation: Anyone can join, contribute, or validate transactions, fostering innovation and inclusivity.
• Global Accessibility: No borders or permissions needed—open to anyone with an internet connection.

 

Advantages of Private Blockchain

 

 

Here are some of the core advantages of private blockchain that you should know: 

• Faster Transactions: Fewer nodes and participants allow for high-speed processing and reduced latency.
  
• Scalability: Easier to scale due to controlled access and simplified consensus mechanisms.
  
• Enhanced Privacy: Access is restricted to authorized users, ensuring data confidentiality and security.
  
• Custom Governance: Organizations can tailor rules, permissions, and access levels to suit their needs.
  
• Regulatory Compliance: Easier to implement legal and compliance controls (e.g., KYC, GDPR) in closed environments.
  
• Low Energy Consumption: More efficient consensus mechanisms like PBFT (Practical Byzantine Fault Tolerance) use less energy than proof-of-work.

 

Decision-Making Factors: Which One Should You Choose?

Here are some of the decision making factors that will help you choose the right blockchain technology for your business. 

 

1. Transparency Needs

• According to experts that offer solana blockchain development services, you should choose a public blockchain if full transparency and public verifiability are essential (e.g., in voting systems or public audits). 
• Opt for private blockchain if you need controlled visibility and privacy (e.g., financial institutions).

 

2. Scalability & Performance

• Private blockchains typically offer faster transactions and better scalability due to limited nodes and participants.
• Public blockchains can face performance bottlenecks, especially under high network load.

 

3. Security & Trust Model

• If you need trustless systems where anyone can verify, go public.
• If you’re working in a trusted environment (like within an enterprise), private blockchains are more efficient.

 

4. Control & Governance

• Public blockchain: No central authority; anyone can participate.
• Private blockchain: Controlled by a central entity or consortium with permissioned access.

 

5. Cost Considerations

• Public chains often involve transaction (gas) fees.
• Private chains may have higher setup and maintenance costs but no per-transaction fees.

 

 

Industry-Specific Recommendations

Private vs public blockchain explained based on industry recommendations:

 

Industry	Recommended Blockchain	Why?
Finance & Banking	Private	Enhanced privacy, compliance, faster transactions.
Healthcare	Private	Protect sensitive patient data; meet regulations like HIPAA/GDPR.
Supply Chain	Hybrid / Public	Public for transparency, private for internal tracking.
Government & Voting	Public	Open verifiability and trustless operation are crucial.
Retail & Ecommerce	Public	Consumer trust, loyalty rewards, and transparent reviews.
Education	Public	Credential verification and open academic records.
Real Estate	Hybrid	Public records for ownership, private for internal transactions.
Legal & Contracts	Private	Controlled access and compliance with legal procedures.

 

Conclusion

Both public and private blockchains serve unique purposes and offer distinct advantages depending on the use case. Understanding the differences between these two models is crucial for selecting the right blockchain solution for your business or project.

Whether you’re building a decentralized app, securing supply chain data, or exploring enterprise blockchain solutions, choosing the right type of blockchain can be a defining factor in your success. If you are a business looking for a top-notch blockchain app, then contact Dev Tech, a leading blockchain development company, and stay tuned for more informative updates.  

 

FAQs

 

Q1. What is Blockchain App Development?

Blockchain app development refers to building applications that run on a decentralized, distributed ledger system. These apps often use smart contracts to automate processes and ensure transparency, security, and immutability.

 

Q2. How do Public and Private Blockchains Differ?

• Public blockchains are open to everyone, decentralized, and transparent (e.g., Bitcoin, Ethereum).
• Private blockchains are permissioned and controlled by a single organization or group, offering more control, speed, and privacy (e.g., Hyperledger, Corda).

 

Q3. How Much Does it Cost to Develop a Blockchain app in 2025?

The cost varies depending on complexity, features, platform, and team location. On average:

• Simple dApp: $8,000 – $13,000
• Medium Complexity App: $15,000 – $20,000
• Advanced Enterprise App: $22,000 – $30,000+

 

Q4. How Long Does it Take to Develop a Blockchain Application?

Depending on the complexity, team size, and scope of the app, it usually takes 3 to 12 months.

 

Q5. What Industries Benefit From Blockchain Apps?

Blockchain apps are widely used in:

• Finance & banking (DeFi, payments)
• Supply chain & logistics
• Healthcare (medical record tracking)
• Real estate
• Government (voting, identity verification)
• Gaming & NFTs