Differences Between Private and Public (Public) Blockchain Networks

Blockchain ​​networks are generally open to the public but private blockchain ​​networks are also growing quickly.

Blockchain is a distributed database where many transactions are continuously recorded, where nodes and miners in the network secure those transactions and records. Blockchain is generally public, just like Bitcoin. In public blockchain networks, all transactions are transparent and data cannot be changed. There is no restriction for anyone to enter the network, anyone can read, write or join. That is why it is decentralized and cannot be controlled by any person or group.

However, many businesses and public enterprises do not prefer public networks due to data security and privacy concerns. Special Blockchain networks have been developed for these people. Private Blockchain networks are commonly known as permission networks. In these networks, which are closed and only authorized people can join, certain people are given special rights or the activities of some participants are restricted. This centralizes private blockchain networks and makes them one that a small audience can control. The best example of this is Hyperledger.


You can think of public blockchain as a public park. It resembles a park where everyone can picnic, walk their animals and play ball. Everyone has certain obligations, such as keeping the park clean. The rules are established by a common consensus by everyone in the form of convention. Private Blockchain networks can be thought of as a horse farm. Imagine that entry to the horse farm requires membership, that certain rules are set in order to enjoy the services inside, and that these rules and management of the farm are carried out by a small minority of owners. While public-public Blockchain networks are more common, private networks are also increasing day by day.