Quickly Understand What are Public Chains, Private Chains, And Alliance Chains in Three Minutes?

The chain circle has sorted out the types of blockchains, which are mainly divided into public chains, private chains and alliance chains, each with different application scenarios and characteristics, and the different characteristics of blockchains can be used to form hybrid chain applications.

Public Blockchain

You can see that there are so many public chains on the DappRadar webpage!


  • Anyone can use it, get data, and some data can be stored (requires fuel fee).
  • More decentralized, using open source systems, there are foundations or many developers to discuss directions, interactive open source methods.


  • It is difficult to update, involving too many people and too many aspects.
  • Efficiency is limited by the consensus algorithm used, if it is POW (Proof of Work), it will be even slower. Such as Bitcoin, Ethereum, and TERRA, BSC, Avalanche, Solana, Polkadot, and Cardano, which currently occupy the top ten market capitalizations, are all types of public chains.
  • In terms of privacy, users have no privacy. Although they don’t know who the wallet address holder is, they can track the so-called whale wallet address, know the large transfer of cryptocurrency and which account holds which NFT, so many project parties will airdrop Free NFT to the wallets of some opinion leaders, KOL, celebrity artists, etc., to create the illusion that everyone owns it!

Private Blockchain


  • It is usually used in the internal use of enterprises or business applications of enterprises, such as cooperation between financial departments.
  • No native currency, no mining mechanism, user privacy protection, internal use, fast speed.
READ ALSO  What Is The soul of Blockchain? Three Mainstream Consensus Mechanisms of Blockchain 2023

Consortium Blockchain


  • Between public and private chains, only pre-determined individuals/organizations/nodes have permission to use it.

For example, if several banks decide to build an alliance chain together, everyone can share some user information, such as the credit score of the loan and the credit status of the depositor, which can greatly reduce the consumption of repeated manpower and resources, and even It is possible to produce more accurate and valuable data analysis and so on.

  • Use by a small number of people/organizations, partial decentralization (different organizations), privacy management, fast speed.
  • Compatible with Ethereum, replaceable consensus mechanism (voting to POW, POS, POA, etc.), smart contracts can be set to public/private, no native currency, and only designated users/organizations can use it.

Representative application: JP Morgan-Quorum

It can implement the bank cash flow system “Interbank Information Network (IIN)”. The project has more than 300 bank partners around the world. It has also expanded to the Middle East, Africa, Latin America and other places.

Summarize the difference between public chain, private chain and alliance chain

With the development of the underlying technology of the blockchain, in addition to financial applications, many companies are gradually trying to apply it in various industries. I believe that there will be more industrial applications in the future. Let everyone look forward to it!

View Also –

How Will Cryptocurrencies Revolutionize the Financial World? Cryptocurrency Future with Implications For Global Public Utilities?

Why Is Web3 The Future?

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READ ALSO  What Is The Difference Between Blockchain And Bitcoin? What Is The Use Of Blockchain?

What is Leveraged Trading of Cryptocurrencies? What Does Cryptocurrency Leveraged Trading Mean?

What Is Ethereum Merger?


Puneet Kantiwal

Puneet Kantiwal is an experienced professional in the field of blockchain and cryptocurrency technology. With a strong background in computer science and programming, Puneet Kantiwal has been involved in the crypto space since its early days. He has worked on various projects related to blockchain technology, including the development of smart contracts, decentralized applications, and blockchain-based platforms.

Learn More →

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