Blockchain is the underlying technology on which the world’s first Cryptocurrency “Bitcoin” is based upon. Not only in financial sector, the revolutionary technology is also gaining huge popularity among other sectors as well. have already explained What is Blockchain?” In this article, the two kinds of networks, i.e., Public & Private Blockchain is explained and differentiated.

Types of Blockchain Network

->Private (Permissioned)

->Public (Permissionless)


Private and Public Blockchain have many similarities:

->Both networks are decentralized peer-to-peer networks, where each participant maintains a replica of a shared append-only ledger of digitally signed transactions.

->Also,both networks provide certain guarantees on the immutability of the ledger, even when some participants are of bad intentions

->And, both maintain the replicas in sync through a protocol referred to as “Consensus”.


Private Blockchain Network

A Private Blockchain  Network requires an invitation to participate in the  network. The invitation must be validated either by network starter or by the rules/conditions placed by the network starter.

Permissioned Blockhain Network puts restriction to the entry of participant and allows only the kind of participant that is required in the network.

Any entity willing to participate must be invited or obtain a permission to join the network. Once the entity has joined the network, it can start the activity of maintaining the Private Blockchain Network in a decentralized manner.

The entry of the enitity can be controlled/allowed or disallowed by as follows:

->Existing participants can decide the entry of new participants,

->A regulatory authority can be set up which can issue licenses for participation,

->A consortium can be formed to make the decision of entry of future participants,

->Or any other way that the network founders may think fit.

Only the entities participating in a particular transaction carried out in a private Blockchain network will have knowledge and access to it — other entities will have no access to it. Also, in case any faulty transaction is carried out deliberately, the culprit verifying the transaction can be known as entities in Private Network are limited.


->Increased privacy

->Enviornment-friendly as less computational power is required to achieve the consensus.(as in the case of Public Network)


->Less secured as compared to public network


Hyperledger Fabric is an example of a permissioned network

Public Blockchain Network

A public Blockchain network or permissionless Blockchain network is completely open-ended and anyone willing to participate in this kind of network can participate without any permission. This is the major and only difference between public and private Blockchain network

Anyone can participate in the permissionless network, execute the consensus protocol and maintain the shared open public ledger.

Public Blockchain network has a system of providing incentives to the participants, which encourages entities to participate.More the number of participants, more is the security and accuracy of the transaction.


More secured as compared to Private Network


Low privacy

Huge computational power and energy is required, less eco-friendly.


Bitcoin, is the most famous example of Public Network. posts articles about Blockchain technology, Bitcoin and Cryptocurrencies. Subscribe to our newsletters to stay updated.

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