A private blockchain is a network where the users need to have permission to participate from the center, which manages the entire system. Mostly, the organizations such as banks use this system to manage their workflow conveniently.
It is a partially decentralized network where a certain number of people are allowed to participate and have access. However, they will need the permission of the central authority to make the work done.
A user needs to have the approval of the network initiator to be able to take a part in the system. Thus, they will be able to have access to the certain process to be done.Know More
The private blockchain offers a much more secure network as the transactions or data sharing is held within a small group. It is the best possible solution to manage the back-end services such as database management in an organization.
No one can participate in the network without confirmation from the central authority who is accessing it. They can create the groups that will be responsible for confirming transactions. Another amazing feature of the private blockchain network is that it provides better speed.
When you opt for a private network, your data remains protected within your system. Also provides the ability to slowly grow from a private blockchain network into a widely accessible public blockchain network.
Apart from being faster than the public blockchain, the private blockchain provides better security as no outsiders can enter the system without permission. This helps in maintaining the privacy of the network.
In a private blockchain network, permission is required by an authority for completing the process, Whereas in a public network, no confirmation is required. To give control access or the transaction rights to other parties, it's not open for all. The sectors that require better flexibility, security, and high speed are moving towards betterment with blockchain technology.