Module 2/5
Topic 3/3

Different Types of Blockchains (Public, Private, Consortium)

4m Read

Blockchain technology has evolved to accommodate various use cases, leading to the development of different types of blockchains. Each type offers distinct features tailored to specific needs in terms of privacy, control, and accessibility. This lesson will introduce you to the three primary types of blockchains: Public, Private, and Consortium.

Public Blockchains

Public blockchains are open and decentralized networks that anyone can join and participate in. They offer a high degree of transparency and security, as all transactions and blocks are visible to all users. Bitcoin and Ethereum are prime examples of public blockchains.

  • Transparency and Security: Due to their open nature, public blockchains provide a transparent environment where transactions are verifiable by anyone.
  • Decentralization: No single entity controls the network, enhancing security and reducing points of failure.

Private Blockchains

Private blockchains are permissioned networks where access is restricted to specific members. They are typically governed by a single organization or a group of entities that control who can participate in the network, view transactions, and access data.

  • Privacy and Control: Private blockchains offer more privacy and control over the network, making them suitable for businesses that require confidentiality in their operations.
  • Efficiency: With fewer participants to validate transactions, private blockchains can be more efficient than public ones, albeit at the cost of decentralization.

Consortium Blockchains

Consortium blockchains are a middle ground between public and private blockchains. They are partially decentralized and governed by a group of organizations rather than a single entity. Access to the network and the right to participate in the consensus process are restricted to a consortium of members.

  • Collaboration: Consortium blockchains enable multiple organizations to work together and share information in a secure and efficient manner.
  • Control and Decentralization: They offer a balance of control with some level of decentralization, as no single member has complete authority over the network.

Choosing the Right Type of Blockchain

The choice between public, private, and consortium blockchains depends on the specific needs and goals of a project. Public blockchains are ideal for applications that value transparency and decentralization, while private blockchains are suited for those that require privacy and control. Consortium blockchains are best for collaborative projects among multiple organizations.

Key Takeaways

  • Public Blockchains: Open, decentralized, and transparent, ideal for cryptocurrencies and open-source projects.
  • Private Blockchains: Restricted and permissioned, suitable for enterprises that need privacy and efficiency.
  • Consortium Blockchains: Governed by a group, offering a balance between decentralization and control, perfect for collaborative efforts among businesses.


Understanding the different types of blockchains is crucial for anyone looking to delve into the blockchain space. Each type serves unique purposes, catering to the varying requirements of transparency, control, privacy, and efficiency. Recognizing the distinctions and applications of public, private, and consortium blockchains will enable you to better assess and engage with blockchain-based projects.

Self Custody crypto is made easy with Elbaite. Start your journey today.