What is the difference between public chains and private chains?
Public chains and private chains are two main types of blockchain, with core differences reflected in access permissions, applicable scenarios, and more, as follows:
Public Chain (Public Blockchain)
- Access Permissions: Completely open, anyone can freely join the network, read data, send transactions, and transactions can be acknowledged by the entire network. For example, Bitcoin and Ethereum blockchains are accessible to users worldwide.
- Degree of Decentralization: Highly decentralized, with no single institution or individual able to control the network, maintenance is performed collectively by all nodes in the network.
- Applicable Scenarios: Suitable for scenarios that require transparency and decentralization, such as cryptocurrency trading, decentralized application (DApp) development, etc.
Private Chain (Private Blockchain)
- Access Permissions: Restricted access, open only to specific organizations or groups, joining the network requires authorization. For example, blockchain systems within enterprises.
- Degree of Decentralization: Relatively centralized, usually controlled by a certain institution or organization that manages the network's nodes and maintenance.
- Applicable Scenarios: Suitable for scenarios with high demands for privacy and control, such as internal data management within enterprises, private segments in supply chain management, etc.
