Private vs Public Blockchains: Which One Should Your Business Choose?

By Pankit Chapla

Chief Technology Officer

Published

December 24, 2025

Private vs Public Blockchains: Which One Should Your Business Choose

Blockchain is no longer a term that is tied to crypto.

Enterprises around the industries are exploring blockchain actively. It is to improve transparency, security, automation and trust. But once a business decides to adopt blockchain, question raises is…
‘Private blockchain or public blockchain? Which one fits your business?’

The answer is not universal. Each blockchain type offers different needs, risk levels and operational models. If choosing the wrong one, it can lead to scalability issues or compliance challenges or unnecessary complexity.

This blog will provide info on private vs public blockchain. So, you can decide what works best for your organization.

Before choosing a Blockchain... know what you are Solving

It is easy to get caught in a race of blockchain. But jumping into technology decisions too early often leads to overcomplicated systems. These systems do not solve real problems.

Most businesses do not need blockchain. They need shared trust.
They want:

  • Data that multiple parties can rely on
  • Fewer intermediaries
  • Clear audit trails
  • Tamper-proof records

Private blockchain and public blockchain can deliver this. But in very different ways.

Public Blockchain and the Power of Transparency

Public blockchains did not start as enterprise tools. They were created to remove gatekeepers by giving individuals the power to transact, verify and build. It was done without needing approval from a central authority. This philosophy of openness is what defines how public blockchain networks operate today.

Public blockchains are designed with one idea that says, ‘anyone can participate.’

No approval.
No gatekeepers.
No central authority.

Anyone can read data, submit transactions and verify records. This openness is exactly why public networks work so well for decentralized ecosystems.

The Power of Public Blockchains

  • Open marketplaces
  • Token based platforms
  • Community owned network
  • Systems that benefit from transparency

This is why public networks play a major role in Web3 and crypto ecosystems. But openness comes with trade-offs.

Public blockchains:

  • Process transactions more slowly
  • Expose all data publicly
  • Depend on community governance

For some businesses, that is a feature. For others, it is a risk.

Private Blockchain and the Power of Authority

Private blockchains are designed with businesses in mind. Here data access, participation and governance need clear boundaries. Instead of complete openness, they focus on controlled collaboration between known parties. They still want the benefits of blockchain’s immutability and transparency.

Private blockchains turn the tables

Access is restricted.
Participants are known.
Governance is defined upfront.

This is why private networks are often called permissioned blockchains.

Instead of asking “Who can join?”, private blockchains ask, “Who should be allowed in?”

Private blockchains making sense

  • Enterprises handling sensitive data
  • Regulated industries
  • Internal or consortium workflows
  • Systems requiring predictable performance

Private blockchain adoption is not about secrecy. It is about responsibility and control.

Private vs Public Blockchain

Instead of listing differences, here is a more useful way to think about private vs public blockchain.

If transparency is your strongest asset ➡ Public blockchain fits naturally.

If privacy is non-negotiable ➡ Private blockchain is safer.

If your users are unknown and global ➡ Public blockchain scales better.

If participants are verified partners ➡ Private blockchain reduces complexity.

This is the core blockchain network comparison most businesses actually care about.

Security is not about “Which is Safer”

Security debates around blockchain are often misleading.

Both models are secure. But just differently.

Public blockchains rely on:

  • Decentralization
  • Cryptographic consensus
  • Business reward

Private blockchains rely on:

  • Identity control
  • Permissioned access
  • Network governance

So, when businesses compare blockchain security types, the question arises is, ‘who do you trust? Code or known participants?

There is no wrong answer. Only context.

Best Applications of Public Blockchains

Public blockchains work when trust needs to be global and verifiable.

They are commonly used for:

  • Open digital assets
  • Decentralized applications
  • Token-based ecosystems
  • Public registries

Public blockchain becomes an advantage if your business model depends on openness and community participation

Best Applications of Private Blockchains

Private blockchain adoption is driven by practicality.

Enterprises choose private networks when:

  • Regulations demand data control
  • Transactions must be fast
  • Participants are already trusted
  • Auditability matters more than openness

This is why most early enterprise blockchain options start private and evolve over time.

Hybrid and Consortium Models as the Middle Path

Not every business fits cleanly into one category.

Some need privacy internally but transparency externally. Others collaborate with partners but not in public.

This is where hybrid blockchains and consortium blockchains are used.

They allow businesses to share control without sacrificing security and compliance.

So... Which Blockchain to choose?

Businesses should choose the blockchain that aligns with how your business already works.

If your processes are open and distributed, public blockchain fits. If your operations are regulated, structured and permission-based, private blockchain fits.

Blockchain should reduce friction and not introduce new ones.

Ending

The debate around private vs public blockchain is not about technology superiority. It is about business alignment.

When blockchain supports your workflows quietly by improving trust, transparency and efficiency. That is the point when it delivers real value.

The right blockchain is the one your business does not have to fight against.

Start Your Blockchain Journey!

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Frequently Asked Questions

1. How private blockchains and public blockchains are differed?

Public blockchains are open to any individual. It is fully decentralized. Private blockchains are permissioned networks. Here, access is controlled by an organization or consortium.

2. For business, which blockchain is useful and better? Private or public?

It depends. Businesses which are handling sensitive data or internal processes usually prefer private blockchains. While public blockchains suit open ecosystems, tokens and decentralized applications.

3. Are private blockchains secure than public blockchains?

Private blockchains offer controlled access and governance. This reduces exposure risks. Public blockchains rely on cryptographic security. They also depend on decentralization by making them secure in a different way.

Pankit Chapla

Chief Technology Officer

Pankit Chapla is the Chief Technology Officer at Yudiz Solutions Limited. He has 12+ years of experience in the software development industry and specializes in technologies like blockchain, AI/ML, IoT, and app/game development. He is passionate about latest trends in technologies and has provided various solutions to clients to improve the efficiency and profitability of their businesses.

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