Are The Public and Permissioned Blockchains Same? chains?

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Are The Public and Permissioned Blockchains Same?

The blockchain technology can transform many industries and economies, allowing you to quickly transfer data (do transactions) so that, if necessary, you can check and track them.

Since its inception, the blockchain concept has undergone tremendous changes. Now, thanks to constant research, technology can be used almost everywhere: from payment systems to the Internet of Things (IoT). Developers are trying to find ways to use technology so that they can become part of our lives.

What is the difference between public and private blockchain? What’s better? Today, both public and private blockchains have their pros and cons, but time and convergence — this term is becoming increasingly important in the blockchain community — will lead to the erasure of the clear boundary between them.

So what is the difference?

The most famous public blockchains are used in the field of cryptocurrency. For example, a bitcoin blockchain is used to perform bitcoin transactions, and it is completely transparent. Anyone can join such a blockchain, read or write information to it. Public blockchains are decentralized, that is, there is no one authority that has control over the network, and the data verified by the participants and recorded in the blockchain cannot be changed, and any member who connects to the network can use the public blockchain to record transactions and data. This type of platform is not suitable for organizations that deal with confidential information, such as commercial contracts or personal data of individuals.

Private organizations prefer to join a permissioned blockchain, which allows “invited and authorized” users to make transactions in such a way that no information about this is open and cannot be accidentally dropped into the hands of third parties. Permissioned blockchains, or blockchains with access control, work similarly to the public, but here not everyone can join the network, so such systems are more similar to our usual centralized databases. In permissioned blockchains, the network is usually managed by one or several centers, which means that transactions are carried out with the help of third parties. Permissioned blockchains provide different levels of authority for users, and therefore access may be limited, and information may also be encrypted with varying degrees of complexity in order to protect confidentiality.

As long as they are needed – today, public and permissioned blockchains have enough problems, and first of all, it is confidentiality and scalability. The blockchain structure inevitably raises the issue of confidentiality, but public blockchains gradually solve it, and, probably, in time, the need for permissioned blockchains will disappear. Another problem that affects both public and permissioned blockchains is compatibility between platforms, that is, the ability to share values for users of different networks.


It is very difficult to determine which blockchain is better – both options have their own advantages and disadvantages. Productivity depends on conditions and goals. The main difference is in the definition of those who are allowed to participate, add and confirm transactions. Permissioned blockchains do not disclose information to the general public, while public ones are accessible to everyone, ensuring full transparency of the information contained in them.

Despite the fact that they have a clear division by functional and purposeful tasks, the potential for combining public and permissioned blockchains has great prospects for both individual and corporate units.

I’m a freelance writer and full-time curious person. My main interests are philosophy, politics, art, culture, science, and how they’re all interlinked. When I’m not writing, I’m fronting a band, producing records, and making videos. I’m also currently working on launching a YouTube channel that will focus on culture and politics. I think blockchain technology is fascinating because of the huge potential it has to revolutionise not only the financial sector, but society as a whole.