How Does a Private blockchain'S Consensus Mechanism Differ from a Public One like Bitcoin's Proof-of-Work? ▴ Learn

How Does a Private Blockchain’s Consensus Mechanism Differ from a Public One like Bitcoin’s Proof-of-Work?

Public blockchains like Bitcoin use permissionless consensus mechanisms, such as Proof-of-Work (PoW), which rely on computational competition to validate transactions and secure the network. Private blockchains use permissioned mechanisms, often Proof-of-Authority (PoA) or variations of Byzantine Fault Tolerance (BFT).

In a private chain, only pre-approved, known entities (validators) participate in consensus, which allows for much faster transaction finality and higher throughput.

What Is the Difference between Permissioned and Permissionless Blockchains?

How Does the Concept of ‘Finality’ Differ in a BFT System versus a Proof-of-Work System?

How Do Private Blockchains Handle the Concept of ‘Mining’?

How Does PoA Differ from Proof-of-Stake (PoS) in Terms of Node Selection?