A public blockchain network is completely open to anyone who wants to be a part of the network. This network usually contains an inbuilt incentive system for more customers to attract, participate and join. For instance, Bitcoin is one of the most widely used public blockchain networks in the world today.

On the other hand, a private blockchain network needs an invitation for private sale crypto that must be approved by the network starter or a set of rules established by the network initiator. Businesses that create a private token sale often do it on a network that requires permission. This limits which are authorized to engage in the network and just for specific transactions. To participate, users must first get an invitation or authorization. Existing participants might decide on potential entrants; a regulatory body could issue participation licenses, or a consortium could choose alternatively. Once a crypto mining companies joins the network, it will help keep the blockchain running in a decentralized network that helps for IDO crypto private sale.

What Are the Similarities Between Public and Private Blockchain?

There have been several variations of blockchain, and the concept is sometimes misunderstood. This is simply due to the numerous parallels between public and private blockchain:

1. Private and public blockchain are both decentralized coequal networks in which each member keeps a duplicate of a shared append-only ledger of digitally verified transactions.
2. They both use a common mechanism called Consensus, used by them to keep the replicas in sync.
3. Both provide their users with rudimentary assurances about the ledger’s immutability, even when some participants are flawed or hostile.

What Are the Differences Between Private and Public Blockchain?

Although public blockchain is available to anyone and anywhere, it still comes with a few disadvantages.
The public blockchain network sends an enormous amount of processing power necessary to maintain a distributed ledger so that it keeps functioning to a large extent. Permeability is another issue for a public blockchain network, as it does not provide any kind of transaction privacy or security. Both of these factors are crucial in industrial blockchain applications.

However, a private blockchain network for any crypto token private sale will have a limited list of participants in a particular transaction.