What is the difference between a public blockchain and a private blockchain? Which is better? Currently there are pros and cons between both Private and Public Blockchains, but time and “convergence”, a term that is gaining prominence in the Blockchain Industry, are clearly showing that the lines between these categories, once clear, are starting to fade.
Public blockchains are just that, public. Anyone that wants to read, write, or join a public blockchain can do so. Public chains are decentralized meaning no one body has control over the network, ensuring the data can’t be changed once validated on the blockchain. Simply meaning, anyone, anywhere, can use a public blockchain to input transactions and data as long as they are connected to the network.
Some well know examples of Public Blockchains would be Bitcoin and Ethereum, with Bitcoin being among the first Blockchain application to prove that value could be moved across the globe without third-parties like banks or remittance companies.
Blockchains that are private or permissioned work similarly to public blockchains but with access controls that restrict those that can join the network, meaning it operates like a centralised database system of today that limits access to certain users. Private Blockchains have one or multiple entities that control the network, leading to the reliance on third-parties to transact.