What Is a Private Blockchain?
A private blockchain is a type of blockchain in which only a single organization has authority over the network.
This implies that it is not open to anyone from the public to join.
Existing private blockchain solutions implement an authorization system to identify who is accessing the platform.
Private blockchain solutions and platforms are typically developed for use in the internal networking system of an enterprise.
The network model relies on trust, and only the employees within a specific firm can be part of it.
Balancing Centralization and Distribution
Unlike a public blockchain, a private blockchain is not decentralized.
However, aspects of the system may be decentralized or distributed in their structure.
Private blockchain platforms often involve regulations that public platforms do not have; for example, all nodes may need to abide by certain rules to ensure a proper workflow.
The upside of private blockchains is their high level of efficiency.
This is in contrast to public blockchains, where many people use many resources that the platform may be unable to support.
Empowering Enterprises
Private blockchain solutions are useful for enterprises that need sophisticated and robust technologies to back up their processes and facilitate their workflows.
Implementation within the internal system of an enterprise remains the best use case for a private blockchain.
Private blockchain solutions are also known to be relatively stable, as only a handful of people can initiate transactions, implying fewer delays and lower congestion.