What are the differences between a public and a private Blockchain?

Not all blockchains are the same. In general, we distinguish between public and private blockchains. While both use the same basic technology – such as distributed data structures and cryptographic security – they differ significantly in terms of access control, governance, and use cases.

This article explains how these two types work, what they’re best used for, and how they compare.

What is a public blockchain?

A public blockchain is open to everyone. Anyone with internet access can:

• View transactions
• Send their own transactions
• Participate in consensus (e.g., mining or staking)

Well-known examples of public blockchains:

• Bitcoin (BTC)
• Ethereum (ETH)
• Polygon (POL)

Public blockchains are decentralized, transparent, and censorship-resistant – but they can be slower and less efficient.

What is a private blockchain?

Private blockchains are restricted to authorized participants. A central authority (such as a company or consortium) controls who can:

• View data
• Submit transactions
• Participate in the consensus process

Typical applications include:

• Banking and insurance
• Supply chain tracking
• Healthcare records
• Government and administration

Private blockchains offer performance and confidentiality — but at the cost of decentralization and transparency.

When to use which type?

Public blockchains: Ideal for cryptocurrencies, open finance (DeFi), decentralized applications, and public registries.

Private blockchains: Better suited for internal business processes, sensitive data, and compliance-heavy environments.

Comparison Table: Public vs. Private Blockchain

Floin Insight

Floin uses public blockchains like Ethereum and Polygon to ensure maximum transparency, interoperability, and trust – all while operating within a regulated framework. For specific enterprise use cases, hybrid models may emerge that combine the strengths of both approaches.