# What Is the Difference between a Public and a Private Blockchain? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

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## What Is the Difference between a Public and a Private Blockchain?

A public blockchain, like Bitcoin or Ethereum, is permissionless, meaning anyone can view the ledger and participate in the consensus mechanism. A private blockchain is permissioned, meaning participation is restricted to a select group of authorized participants, often within a single organization or consortium.

Private blockchains offer greater speed and control but sacrifice decentralization.

- [In Options Trading, Which Participants Would Require Permissioned Access to Sensitive Trade Data?](https://learn.greeks.live/path/in-options-trading-which-participants-would-require-permissioned-access-to-sensitive-trade-data/)

- [What Is a ‘Consortium Blockchain’?](https://learn.greeks.live/path/what-is-a-consortium-blockchain/)

- [What Is the Difference between a Public and a Private Blockchain for DAO Operations?](https://learn.greeks.live/path/what-is-the-difference-between-a-public-and-a-private-blockchain-for-dao-operations/)

- [What Is the Difference between Permissioned and Permissionless Consensus?](https://learn.greeks.live/path/what-is-the-difference-between-permissioned-and-permissionless-consensus/)

- [What Is the Difference between a Public and a Private Mempool?](https://learn.greeks.live/path/what-is-the-difference-between-a-public-and-a-private-mempool/)

- [How Does a Decentralized Autonomous Organization (DAO) Differ from a Permissioned Blockchain’s Governance Model?](https://learn.greeks.live/path/how-does-a-decentralized-autonomous-organization-dao-differ-from-a-permissioned-blockchains-governance-model/)

- [Why Is Decentralization Considered a Key Advantage of Algorithmic Stablecoins despite Their Risks?](https://learn.greeks.live/path/why-is-decentralization-considered-a-key-advantage-of-algorithmic-stablecoins-despite-their-risks/)

- [What Is the Difference between Permissioned and Permissionless Blockchains?](https://learn.greeks.live/path/what-is-the-difference-between-permissioned-and-permissionless-blockchains/)

## Glossar

### [Private Blockchain](https://learn.greeks.live/area/private-blockchain/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Control ⎊ A private blockchain operates under the control of a designated entity or consortium, allowing for tailored governance over transaction validation and data access.

### [Bitcoin](https://learn.greeks.live/area/bitcoin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Architecture ⎊ Bitcoin, within a cryptocurrency context, represents a decentralized, peer-to-peer electronic cash system predicated on cryptographic proof rather than requiring a trusted third party.

## Discover More

### [What Is the Relationship between a Public Key and a Private Key in ECDSA?](https://learn.greeks.live/path/what-is-the-relationship-between-a-public-key-and-a-private-key-in-ecdsa/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Relationship between a Public Key and a Private Key in ECDSA?](https://learn.greeks.live/wp-content/uploads/2025/10/Symmetrical-Bifurcation-Visualizing-Decentralized-Finance-Derivative-Contract-Settlement-Mechanics.webp)

The public key is mathematically derived from the secret private key; the private key signs, the public key verifies.

### [How Does a "Seed Phrase" Relate to the Generation of the Initial Private Key?](https://learn.greeks.live/path/how-does-a-seed-phrase-relate-to-the-generation-of-the-initial-private-key/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a "Seed Phrase" Relate to the Generation of the Initial Private Key?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Finance-Protocol-Configuration-Representing-Complex-Volatility-Surface-Dynamics-in-Digital-Asset-Hedging.webp)

The seed phrase is a human-readable master key that deterministically generates the initial private key and all subsequent keys in the wallet.

### [What Is a Private Transaction Relay and Why Is It Effective against MEV?](https://learn.greeks.live/path/what-is-a-private-transaction-relay-and-why-is-it-effective-against-mev/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is a Private Transaction Relay and Why Is It Effective against MEV?](https://learn.greeks.live/wp-content/uploads/2025/10/Robotic-Sensor-Array-Visualizing-Algorithmic-High-Frequency-Quant-Trading-Protocol-Execution.webp)

A private relay sends transactions directly to block producers, bypassing the public mempool and thus hiding the order from front-running bots.

### [What Is the Primary Use Case for a Private Blockchain in Financial Derivatives?](https://learn.greeks.live/path/what-is-the-primary-use-case-for-a-private-blockchain-in-financial-derivatives/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Primary Use Case for a Private Blockchain in Financial Derivatives?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Actuation-Mechanism-Over-Blockchain-Data-Ledger-Illustrating-Tokenized-Asset-Settlement.webp)

Streamlining post-trade clearing and settlement by providing a shared, immutable ledger among authorized counterparties.

### [In Derivatives, How Does the Concept of 'Hedging' Resemble the Use of a Public Key to Secure a Position?](https://learn.greeks.live/path/in-derivatives-how-does-the-concept-of-hedging-resemble-the-use-of-a-public-key-to-secure-a-position/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![In Derivatives, How Does the Concept of 'Hedging' Resemble the Use of a Public Key to Secure a Position?](https://learn.greeks.live/wp-content/uploads/2025/10/Advanced-Algorithmic-Trading-Blade-Interface-Precision-for-Decentralized-Options-Hedging-Mechanisms.webp)

Both hedging and the public key are mechanisms used to protect or secure an asset or position from a specific type of risk.

### [How Does Delta Hedging Relate to the Need for Large, Non-Public Trades in the Underlying Asset?](https://learn.greeks.live/path/how-does-delta-hedging-relate-to-the-need-for-large-non-public-trades-in-the-underlying-asset/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does Delta Hedging Relate to the Need for Large, Non-Public Trades in the Underlying Asset?](https://learn.greeks.live/wp-content/uploads/2025/10/Deconstructed-Decentralized-Finance-Mechanism-Revealing-Embedded-Volatility-Surface-and-Hedging-Instrument-Mechanics.webp)

Delta hedging requires large, immediate trades in the underlying asset; non-public venues prevent these trades from causing adverse price movement.

### [What Is the Difference between "Confirmation Time" and "Finality" in a Blockchain Transaction?](https://learn.greeks.live/path/what-is-the-difference-between-confirmation-time-and-finality-in-a-blockchain-transaction/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between "Confirmation Time" and "Finality" in a Blockchain Transaction?](https://learn.greeks.live/wp-content/uploads/2025/10/Metallic-Trunk-Latch-Mechanism-Reflecting-Digital-Asset-Volatility-Under-Dark-Pool-Illumination.webp)

Confirmation is inclusion in a block (reversible); finality is the point where the transaction is cryptographically or economically irreversible.

### [How Are Smart Contracts Used in a Private Blockchain Environment?](https://learn.greeks.live/path/how-are-smart-contracts-used-in-a-private-blockchain-environment/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Are Smart Contracts Used in a Private Blockchain Environment?](https://learn.greeks.live/wp-content/uploads/2025/10/Macro-Photography-of-Hard-Disk-Platter-Spindle-Assembly-Symbolizing-On-Chain-Settlement-Latency.webp)

Smart contracts automate agreements and business logic between known, authorized parties on a private chain, streamlining operations and reducing risk.

### [What Are the Liquidity Risks on Public Crypto Exchanges?](https://learn.greeks.live/path/what-are-the-liquidity-risks-on-public-crypto-exchanges/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Are the Liquidity Risks on Public Crypto Exchanges?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Entanglement-Visualization-Abstract-Geometric-Structure-Optimizing-Liquidity-Provision-in-Decentralized-Exchanges.webp)

The risk of not being able to sell your crypto quickly without causing the price to plummet due to a lack of buyers.

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**Original URL:** https://learn.greeks.live/learn/what-is-the-difference-between-a-public-and-a-private-blockchain/
