Private Chain

A private chain is a type of blockchain where access is restricted to a select group of participants, typically used by businesses or consortiums for internal or permissioned operations.

How Private Chains Work

Unlike public blockchains like Bitcoin or Ethereum, a private chain is controlled by one organization or a group that decides who can read, write, or validate transactions. The network operates in a closed environment, often with faster performance and greater control over data and user permissions.

Why Private Chains Are Used

Private chains are ideal for enterprises that need data privacy, regulatory compliance, and high efficiency. They’re commonly used in supply chain tracking, financial settlements, and inter-company collaboration. While they sacrifice decentralization, they offer better scalability, speed, and governance.