From the start of blockchain technology, people have had different thoughts or arguments about what is best? public vs private blockchain. In an industry environment, it’s actually dominant to know the big differences between these two. But how? if you don’t identify the difference and got the wrong platform, then your solution won’t be useful. Of course, nobody wants to happen this to them. So you should be aware of the difference really well.
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You can achieve true decentralization, in a public blockchain. This is something that is not present or available in private blockchain networks. It creates a distributed nature, as everyone has a copy of the ledger. A private blockchain is more of a partially decentralized situation as it isn’t fully decentralized, unlike public blockchain platforms. However, it does have a big authority looking over the system. I
Basically, all the private blockchain solutions will have some form of authorization scheme to identify who is entering the platform. Only a single organization has rights over the network. So, the public people can’t participate. Thus, only a handful number of selected members have access to the network. Where in a public blockchain network, there are no restrictions when it comes to participation. Anyone can join whenever they want. That’s the reason why anyone can see the ledger and take part in the consensus process.
Private blockchain platforms tend to have a lower transaction cost compared to public blockchain platforms. Because a huge number of nodes on the platforms allows down the performance. As a result of this, it takes a lot of time to process the requests. Thus, prices increase drastically in the public blockchain.
On the other hand, in private blockchain platforms, the transaction fees are quite low. Because it doesn’t increase based on the number of requests. So, it doesn’t matter how many people request a transaction, the fees will always stay low.
Transaction speed plays a vital role in the private and public blockchain. Actually, both platforms can perform quite the same, until a certain point. But once we hit a certain point, the transaction speed varies drastically.
Usually, in a public blockchain, the network relatively slows down with the transaction speed, when there are too many requests on the network. It can take a lot of time to even process a transaction then.
But this doesn’t happen in private blockchain platforms. Here, speed always remains constant as only a handful of nodes can participate in the transaction process.
In a public blockchain, anyone can do read and write on the ledger. But you can’t change or modify it once it gets on the ledger. However, in a private blockchain, only a few nodes can write on the ledger as only a single organization has access to read and write on the ledger.
A public blockchain is less efficient compared to private blockchain platforms as it has to deal with scalability issues, and its transaction speed slows down when there are too many nodes on the platform. While a private blockchain has to deal with a few nodes on the platform. So it is more efficient.