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June 3, 2021
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Public vs. Private Blockchain: What’s the Difference?

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Permission
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When Bitcoin launched as the first implementation of the blockchain in 2009, distributed ledger technology (DLT) disrupted multiple industries.

From finance and banking to supply chain management and healthcare, organizations have been leveraging blockchain technology’s benefits to innovate, create more efficient services, as well as provide viable solutions to long-known issues.

That said, if you hear the phrase “blockchain,” probably the first thing that comes to your mind is a highly decentralized, open, community-governed DLT network like Ethereum or Bitcoin.

However, in addition to public blockchains, there is another form of the technology called private blockchains tailored for enterprise usage.

But what is the difference between public and private blockchains, how do they work, and what are their core features?

Let’s find out in this article!

What Blockchain Types Are Out There?

The blockchain refers to a digital ledger that is duplicated and distributed across the devices of all participants in the network in a way that everyone stores the same records and sees related changes in real-time.

But, did you know that there are four types of blockchain networks currently available?

That’s right.

Below, you can find all DLT variations with a small description for each:

  1. Public blockchains: Appeared with the launch of Bitcoin, public blockchains are open for anyone to join and use solutions within the network. Since DLT networks are transparent in nature, everyone can audit and monitor records on public blockchains. For this blockchain type, the read access is open.
  2. Private blockchains: Unlike their public counterparts, private blockchains restrict access for users, only allowing those within a specific organization or who have passed Know Your Customer (KYC) checks and have been approved by the system administrator into the network. For this blockchain type, the read access is closed.
  3. Permissionless blockchains: In a permissionless blockchain, anyone can participate in the consensus mechanism to validate blocks and transactions. Since there are no access controls in place for validators, the write access is open for this blockchain type.
  4. Permissioned blockchains: To achieve higher throughput and tailor DLT networks for enterprise usage, permissioned blockchains limit the number of validators while having access controls in place to select who can participate in the consensus mechanism. For that reason, the write access is closed for this blockchain type.

Since they are similar concepts, the terms private and permissioned, as well as public and permissionless, are often used interchangeably in the cryptocurrency industry.

However, they don’t exactly refer to the same thing.

While the public and private terms focus on whether a DLT network restricts read access for standard users, permissioned and permissionless refer to the presence of access controls for validators (write access).

Generally, all permissionless blockchains are public (open read and write access), and all private blockchains are permissioned (closed read and write access).

On the other hand, not all public blockchains are permissionless, as there are permissioned public DLT networks out there that allow anyone to join and audit the data on the chain but that restrict who can validate blocks.

In the next sections, we will focus on the differences between public and private blockchain networks.

Public vs. Private Blockchains: What Is the Difference Between the Two?

Both public and private blockchains leverage the benefits of DLT technology.

However, the core difference between the two is how they manage user access and whether they control who can validate blocks within the network.

What Is a Public Blockchain?

Examples: Bitcoin, Ethereum, Litecoin,

Most of the blockchain networks on the market are public, meaning that anyone with a working internet connection and a compatible device can access them along with the products, services, and apps in the ecosystem.

At the same time – since everyone keeps the same records on their devices and all modifications are transparently recorded on the digital ledger, users can inspect the data recorded on the public blockchain, trace transactions, and view other information.

Also, as there are no controls in place to restrict access for standard users (thus, no need for KYC), a higher degree of privacy can be achieved in the network.

When a public blockchain is also permissionless, it means that the network is not only free to access for standard users, but it lacks restrictions for validators as well.

As a result, everyone can participate in the consensus mechanism by operating a full node or mining or staking the platform’s native cryptocurrency.

Since the number of validators is high and there’s no central authority that selects them in public DLT networks, it allows for a great level of decentralization.

At the same time, this architecture provides enhanced security against attackers as they would need to take over the majority of the network to succeed.

What Are the Most Important Features of Public Blockchains?

Now that you know what public blockchains are, let’s see their most important features.

  1. Decentralization: In public blockchains, every user is equal without anyone having more authority than others. For that reason, and since nodes and validators are scattered all over the world, this DLT type is highly decentralized. Also, instead of a centralized company, most public blockchains are governed by the community who uses the chains’ native tokens to vote on upgrades and other important matters related to the network’s future.
  2. Privacy: In public blockchains, no KYC or any other forms of identity checks are needed to enter the network and use solutions within the ecosystem. As a result, users can achieve a higher level of privacy.
  3. Transparency: Since anyone can view and audit data on the blockchain, public DLT networks operate transparently. For that reason, it’s much easier to spot malicious, dishonest, and illicit activities in the ecosystem.
  4. Immutability: Due to the nature of the blockchain, once a transaction is recorded on the ledger, it can’t be altered in any way unless the majority of the validators agree to do so. Since public blockchains feature a massive number of validators, it’s almost impossible to tamper with data recorded on the ledger, making public DLT networks immutable.
  5. Censorship-resistance: DLT networks operated by centralized companies are often subject to regulations in some jurisdictions that could lead to some forms of censorship within the ecosystem. On the other hand, public blockchains leverage the power of decentralization to become entirely resistant to censorship.
  6. High Security: In addition to eliminating all risks of a single point of failure, the large-scale participation in the consensus mechanism makes it hard for attackers to take over the network. For example, they have to acquire 51% of the hash rate (the total computing power of devices connected to the network) to gain control of chains using the Proof-of-Work (PoW) consensus algorithm. However, if many miners are maintaining the network, it could effectively prevent such scenarios due to the potential costs of the attack. To achieve such against Bitcoin, an attacker would need to purchase 1.75 million of a popular mining rig that is priced at $10,000 each and feature a hash power of 100 TH/s (the current BTC hash rate is around 175 million TH/s). As a result, malicious parties would have to spend a whopping $17.5 billion to buy the hardware capable of taking over 51% of the network (and we didn’t even take electricity fees into account).

What Is a Private Blockchain?

Examples: Hyperledger Fabric, ConsenSys Quorum

While public DLT networks are meant to be used by the general public for all kinds of purposes, private blockchains are instead tailored for enterprise usage.

For that reason, private DLT solutions have access controls in place both for writing and reading.

This means only users authorized by the system admin can enter the network while the enterprise managing the ecosystem selects the validators that can participate in the consensus mechanism.

As a result, the organization can leverage the benefits of DLT technology while effectively safeguarding sensitive data recorded on the ledger.

To achieve that, everyone seeking to join the network must confirm their identities by submitting to KYC checks.

Upon the approval of the documents, the system administrator will assign different roles with various levels of access to participants in the ecosystem.

For example, while the enterprise may allow all its employees to view standard records, it may give only executives and top managers authorization to access sensitive data.As a result, the enterprise could keep everything under control by setting its own rules in the network.

Furthermore, enterprises not only choose who can validate blocks but also limit the number of validators that can generate blocks and verify transactions.

This gives private blockchains a significant advantage over their public counterparts in terms of scalability and throughput.

While it comes with increased centralization, the fewer the participants are present in the consensus process, the more efficient the network becomes, and the quicker transactions can be processed.

What Are the Most Important Features of Private Blockchains?
  1. Enhanced Scalability: By centralizing the consensus process, private blockchains limit the number of validators, making the network more efficient. As a result, high scalability and transaction throughput can be achieved at much better speeds than with public DLT solutions.
  2. The Ability to Prevent Unauthorized Access: Since only authorized users can use the network with different roles assigned to every participant, sensitive data recorded on private blockchains can be effectively safeguarded by restricting access for the general public, competitors, and malicious parties. Also, with an effective KYC process, enterprises can significantly minimize (or completely eliminate) the presence of illicit activities within the ecosystem.
  3. Cost-Efficiency: As the number of nodes is significantly limited (e.g., 20-30 vs. 10,000+ for public chains), it substantially reduces the costs of maintaining the network.
  4. Regulatory Compliance: Since most private blockchains are operated by businesses, they have to comply with regulations in multiple jurisdictions. While it may be hard to achieve that in a public DLT network, a private blockchain allows the enterprise to set and enforce rules according to regulators’ laws, frameworks, and policies.
  5. Enterprise Customizability: Since they have increased control over the network, enterprises can easily customize private blockchains to fit their needs.

Public vs. Private Blockchains: The Verdict

Both public and private blockchains have an important role in the industry.

While public DLT networks are more suited to fulfill the needs of the general public, private chains are tailored for enterprise usage.

Via an open, decentralized, transparent, and community-governed network, participants of public blockchains can benefit from increased privacy, censorship resistance, and enhanced security.

On the other hand, this DLT type lacks the level of customization for enterprises while suffering limited scalability and network efficiency.

Private blockchains seek to solve these issues by sacrificing decentralization and privacy to achieve better throughput at lower fees by limiting the number of validators.

At the same time, by performing KYC checks and setting their own rules and policies, enterprises can easily customize private chains to fit their preferences, comply with regulations, and prevent unauthorized access.

—

Frequently Asked Questions (FAQ)

1. Is Bitcoin a public or private blockchain network?

Bitcoin is a public blockchain that allows anyone to access the network as well as solutions within the ecosystem without any restrictions. Furthermore, you can also audit transactions, addresses, and other data recorded on the distributed ledger.

All you need is a compatible device and a working internet connection to do so.

In addition to being public, Bitcoin’s blockchain is also permissionless, which means that everyone is free to participate in the consensus process by running a full node or mining BTC.

2. Is a private blockchain centralized?

Since private blockchains have access controls in place for both validators and standard users – who have to be approved by the system administrator (a centralized authority) based on KYC documents –, private blockchains are increasingly centralized.

3. What is the use-case of private blockchains?

Private blockchains are tailored to fit the needs and preferences of enterprises, governments, non-profits, and other organizations.

Some example use-cases of private blockchains for businesses include supply chain management, digital identity, finance, B2B, healthcare, and food tracking solutions.

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We've partnered with Coinbase to bring best-in-class wallet technology to our community.

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What Is Family Friendly AI™?

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Only 15% of people globally say they trust AI systems, and 72% of parents are concerned about AI’s impact on their children.

AI is quickly becoming part of everyday family life, but Big Tech wasn’t built with families in mind. Family Friendly AI is technology intentionally designed for families, giving parents visibility into their children’s digital lives, guidance when they need it, and tools to encourage positive behavior.

5 Things That Make AI Family Friendly

1. Your family owns its data.

‍Your family’s data is never sold. It belongs to your family, and you stay in control of it.

2. Parents know what’s happening online.

‍Family Friendly AI gives parents visibility into their children’s digital lives, helping them fully understand how their children use and interact with technology.

3. It motivates children with rewards and incentives.

‍Parents can set rewards and incentives to encourage positive behaviors and help their children build better habits around technology and beyond.

4. It gives parents coaching and inspiration.

‍Parenting in a digital world comes with challenges that screen-time limits alone can’t help with. Family Friendly AI gives parents personalized AI-insights and guidance to help them navigate what their children are doing online and decide what to do next.

5. It earns families' trust.

‍Technology for families should have a higher bar. The companies building it should stand behind it with an unconditional, no-questions-asked money-back guarantee.

It’s time for AI, crypto, and the technology shaping our children’s lives to meet the family-friendly standard.

Big Tobacco Had Its Reckoning. Now It’s Big Tech’s Turn.

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The floodgates are open.

Thousands of lawsuits are moving forward. States are writing new rules for kids online. And lawmakers are beginning to tell AI companies what they can and cannot do when children use their products.

And you don't have to look far to see it happening...

The courts: 3,000+ lawsuits get the green light

On August 10, the Ninth Circuit allowed more than 3,000 lawsuits against Meta, Google/YouTube, TikTok and Snap to move forward.

The cases allege that the companies deliberately designed features of their platforms to be addictive, particularly for young users.

The tech companies had argued that Section 230 of the Communications Decency Act protected them from the claims. The court rejected their attempt to use Section 230 to stop the litigation at this stage, finding that it provides a defense rather than immunity from being sued.

At their core, these cases are allegations about the platforms themselves: how they were designed, how they kept people engaged, and what responsibility the companies bear for the consequences.

The companies will still have the opportunity to defend themselves against those allegations.

But with more than 3,000 cases now getting the chance to be heard, this is getting harder to argue away.

New Jersey: families get a way to enforce the rules

One day later, New Jersey Governor Mikie Sherrill signed the New Jersey Kids Code Act into law.

The law establishes new design and privacy requirements for covered online services likely to be accessed by minors. Among other provisions, it requires high privacy settings by default, restricts certain push notifications, prohibits dark patterns for minors, limits how children's personal data can be used and retained, and places restrictions on targeted advertising.

But one provision in particular changes the accountability equation: a private right of action.

An individual under 18 who is injured by a violation can bring a claim under the law, with statutory damages of $5,000 per violation. Parents may also bring an action on a minor's behalf.

Which is legal language for something pretty simple: families don't have to wait around for a regulator to act. They can take companies to court themselves.

Colorado: AI safety starts becoming a legal requirement

Then there's Colorado.

Earlier this year, Governor Jared Polis signed Colorado HB 26-1263, establishing specific requirements for operators of conversational AI services.

And this one is worth paying attention to because the law doesn't simply tell AI companies to "keep kids safe." It starts defining what that actually means.

Operators must estimate users' ages. When dealing with minors, the law requires recurring disclosures that they are interacting with AI rather than a person and establishes protections around sexually explicit interactions.

It also addresses one of the most unsettling questions surrounding companion-style AI: emotional dependence.

The law requires safeguards designed to prevent conversational AI from producing statements that simulate emotional dependence. It also requires protocols for responding to suicidal ideation and self-harm, privacy and account-management tools for minors and parents or guardians, and reporting requirements intended to help regulators evaluate whether those safeguards are actually working.

The law takes effect January 1, 2027.

For companies building conversational AI, that's a meaningful shift. Child safety is moving beyond a set of voluntary guardrails companies write for themselves. In Colorado, some of those guardrails are becoming law.

It's no coincidence that this is all happening at once.

Big Tobacco didn't wake up one morning and discover the world had changed its mind. The reckoning came piece by piece, until lawsuits became regulation and an industry that had spent decades setting its own standards was finally forced to take responsibility for the harm its products caused.

We're watching that shift happen again.

For years, the responsibility for keeping kids safe online has fallen on parents.

Set the parental controls. Check the privacy settings. Watch the screen time. Know which apps they're using. Figure out who they're talking to. Keep up with every new platform, algorithm and now AI chatbot entering their lives.

All while the technology on the other side of the screen gets more sophisticated by the month.

Now courts and lawmakers are starting to ask the companies building that technology a much more uncomfortable question:

If children are using your products, what are you doing to keep them safe?

For families, that's the shift that matters most.

This isn't another round of false promises to "do better."

This is legislation. These are lawsuits. This is accountability beginning to have teeth.

Parents will always have the role of protecting their children online. We happen to believe they should have far more visibility and control over the technology entering their families' lives, not less.

But parents cannot be the entire safety system.

The law is making clear that the companies designing the products, writing the algorithms and building the AI our kids interact with have a responsibility, too.

And when they fail to meet it, they'll finally be held accountable.

ChatGPTs Births A Parenting Tool That Needs Some Image Repair

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Sam Altman keeps pitching AI as a co-parent. The reason parents aren't buying isn't nostalgia, it's the lawsuits.

Last Friday, Sam Altman had an idea he was excited about. Hook your family calendar up to ChatGPT, tell it what your kids are into, and every morning on the drive to school it'll produce a little podcast: one kid's soccer game that afternoon, another kid's birthday coming up, maybe some news. He called it a "cool use case."

What should’ve felt really innovative, landed like the opening scene of a bleak dystopian movie. Two kids in the back, one parent up front, and a smooth synthetic voice narrating, to everyone present, the lives of everyone present. "Later today, Maya has soccer." Maya, who has soccer, looks out the window. Nobody says anything, because the podcast is saying it for them.

The internet population caught what we caught. The reply that stuck came from Alex Hirsch, creator of Disney’s Animated series, Gravity Falls. It was seven poignant words: "What if you just talked to your children?" That was the entire rebuttal, and it traveled a great deal further than the thing it was rebutting. Altman's post drew somewhere around 9,600 likes. Hirsch's reply cleared 120,000. On the CEO's own platform, the crowd took a vote, and the crowd chose the small talk.

Now, we want to be fair here, because the easy thing is to dunk and move on. But we’re parents here at Permission and anyone who has done the 7:40 a.m. drive on four hours of sleep, refereeing a backseat dispute about who touched whom first, knows the exact fantasy of a button that handles the morning. That instinct isn't a character flaw. It's a Tuesday.

But this wasn't a one-off. Altman has been quietly auditioning AI for the co-parent role for a while now. On The Tonight Show in December 2025 he said he couldn't imagine having to "raise a newborn without ChatGPT" then added that people had managed the trick for a few hundred thousand years without it. Also, last year, in a podcast hosted by Andrew Mayne, Altman admitted that people might form “problematic parasocial relationships” to a chatbot. (You know, the one-sided kind that we usually reserve for celebrities we've never met.) He sees the hazards clearly. He's pitching the product anyway.

When visibility turns into vulnerability.

The reason parents flinched at the idea of carpooling with a chatbot for school drop off isn't that they're allergic to convenience. It's that the company making the offer is, right now, being sued by multiple families who say its chatbot played a role in their loved ones' spiraling delusions and, in the worst cases, their deaths. OpenAI says it is continually improving how its models handle sensitive conversations, and that work genuinely matters. But you can see the problem. "Let me into your calendar, your commute, and your kids personal details" is a big ask from anyone. It is a much bigger ask from a company currently explaining itself in court.

Trust isn't a feature you ship in the next update. It's something people hand you slowly, and take back all at once.

Here's where we should admit an interest. We build Permission on a belief that sounds boring until you sit with it: your data belongs to you. With Permission your kids’ browsing history doesn’t get shipped out to the open internet. Not to a model, not to a growth chart, not to whoever posts the next cool use case. And the closer AI creeps toward our kids (and it is creeping, because kids are already asking it everything) the more one question starts to outrank all the others:

Where is the line between parenting and outsourcing parenting?

Because "parenting tool" is doing a lot of quiet work in that phrase. A tool is a hammer. It lives in a drawer, it does one honest thing, and it does not ask to read your child's messages or move into the family calendar. When a company calls its chatbot a "parenting tool," it's worth asking, gently, which word they mean. The tool part, or the parenting part.

We happen to think AI can be genuinely, unglamorously useful to families. Not by doing the talking for you, but by handing you the context you'd otherwise miss instead of a thousand panicked notifications, and then getting out of the way so you can make the call. That's a real distinction, and it deserves its own piece.

So take this as Part One: the news, the flinch, and the reason the flinch is earned. In Part Two, we'll make the harder and more hopeful argument that you can let AI help you parent without completely handing over your family secrets. There is a version of this where the grown-ups stay in charge. We think it's the only version worth building.

For now, the seven best words anyone has offered on the whole affair still belong to Hirsch. So we'll give him the last one, too.

What if you just talked to your children?

‍