What Is a Public Blockchain? What Are Its Uses?
Blockchain: An Encrypted Distributed Ledger
Before diving into public blockchains, let's first understand the essence of blockchain technology. Here's a simplified explanation of how blockchain works:
At its core, blockchain is an encrypted distributed ledger system. All transaction data is packaged into "blocks" and encrypted through a specific mechanism. These blocks are then linked together using cryptographic techniques, ensuring that the data cannot be altered retroactively. This chain-like structure gives blockchain its name.
Once data is written into a block and added to the chain, it becomes immutable and publicly verifiable. These characteristics—immutability and transparency—are fundamental to blockchain technology. The blocks are distributed across countless nodes worldwide, achieving a decentralized network.
Decentralization, transparency, and immutability are the three defining features of blockchain technology.
When adding a new block to the chain, one node is responsible for packaging the data, while others validate it. But how is the packaging node selected among globally distributed participants? This is determined by a "consensus mechanism," with Proof of Work (PoW) and Proof of Stake (PoS) being the most widely used today. Different mechanisms involve various roles, such as validators or nominators, each with unique operational methods.
If these roles are open to everyone, allowing anyone to participate, the blockchain is referred to as a public chain.
Public Chain = Public Blockchain | Open for Anyone to Participate
A public chain (Public Chain) is a blockchain that allows unrestricted participation. With just an internet connection and the right equipment, anyone can join as a node or validator without needing authorization or approval.
Take Bitcoin as an example: according to Bitnodes, over 10,000 nodes worldwide maintain the blockchain's security and operations. If you have mining hardware and the required software, you can join as a node without needing permission.
Public Chain refers to a public blockchain—a decentralized ledger open for anyone to participate in.
Examples of public chains: Bitcoin, Ethereum, and other blockchains open for public participation.
Private Chain | Closed and Restricted Blockchains
Where there are public chains, there are also private chains. If blockchain data is sensitive or unsuitable for public access, organizations may opt for a private chain (Private Chain). Private chains use the same encrypted distributed ledger technology but restrict participation to authorized internal nodes.
These chains are typically used within enterprises for purposes like financial records, logistics tracking, or customer data. Since nodes are internally designated, private chains tend to be more centralized, lacking the decentralization and transparency emphasized by public chains.
Private chain examples: Internal blockchains used by corporations or organizations, accessible only to employees or members.
Consortium Blockchain | A Middle Ground Between Public and Private Chains
Consortium blockchains strike a balance between public and private chains, leaning closer to the latter. Participation requires meeting specific eligibility criteria, making them ideal for business-to-business (B2B) scenarios or collaborations between organizations. These chains ensure efficiency while maintaining data confidentiality.
Consortium chain examples: Partior, a settlement platform co-developed by JPMorgan, DBS Bank, Standard Chartered, and Temasek; Taiwan's Financial Information Service's blockchain platform.
The Three Core Features of Blockchain: Transparency, Decentralization, and Immutability
These foundational principles primarily apply to public chains. Private chains are neither transparent nor decentralized. Public chains, open to all, achieve decentralization while maintaining transparency—all on-chain data is publicly accessible through relevant tools.
However, cryptographic anonymity ensures partial privacy despite transparency.
| Feature | Public Chain | Private Chain | Consortium Chain |
|---|---|---|---|
| Open participation, transparent & decentralized | Restricted to authorized personnel (e.g., corporate use). Private and centralized. | Hybrid: Requires membership. Used for B2B collaborations. |
Why Do Public Chains Have Investment Value?
Public Chains Embody Blockchain's Core Values
When discussing blockchain's defining traits—immutability, decentralization, permissionless access, and censorship resistance—these apply exclusively to public chains. Private or consortium chains operate under different rules.
If you believe in blockchain's transformative potential, public chains are the vehicles carrying these values.
Public Chains Are the Infrastructure of the Blockchain Ecosystem
Blockchains record transactions and assets, but who processes them, and where are they stored? Public chains serve as the foundational infrastructure enabling decentralized applications (DApps) to function.
Just as modern life relies on the internet, blockchain applications require public chains to operate. DApps—like decentralized exchanges—must run on public chains, making public chains the bedrock of the blockchain world.
Investing in public chains is akin to acquiring prime real estate in a developing city. As activity grows, the ecosystem's value rises.
👉 Why Investing in Layer-One Blockchains Is a Smart Choice
Notable Public Chains
Here’s a brief overview of prominent public chains:
Bitcoin: The First Public Chain
Bitcoin operates on its own blockchain, pioneering decentralized cryptocurrency. Designed as an alternative payment system, Bitcoin has grown into the most recognized and valuable crypto asset, with prices surging millions of times over a decade.
Bitcoin Explained: The King of Cryptocurrencies
Ethereum: The First Platform Blockchain
Unlike Bitcoin, Ethereum was designed for smart contracts, enabling DApps. Its native token, ETH, powers transactions and operations on the network. Ethereum remains the most active platform for decentralized applications.
Ethereum’s Key Innovations: Layer-2 Scaling, Smart Contract Wallets, and Privacy
Solana: The High-Speed Blockchain
Once touted as an "Ethereum killer," Solana boasts speeds of up to 65,000 TPS (transactions per second). Despite setbacks from FTX’s collapse, Solana is regaining traction, recently adopted by Visa for USDC settlements.
Why Visa Chose Solana for Payments
Avalanche: The Multi-Chain Platform
Launched in 2020, Avalanche uses a unique consensus mechanism ("Avalanche Protocol") and features a multi-chain structure for scalability. Its subnets allow customized blockchains for DApps, attracting partnerships with major firms like Alibaba Cloud and Amazon.
AVAX Token: Avalanche’s Future Potential
Interoperability Between Public Chains
Currently, public chains operate independently, requiring cross-chain protocols or bridges for interaction. Major ecosystems—like Bitcoin, Ethereum Virtual Machine (EVM), Cosmos, and Polkadot—each comprise multiple chains awaiting seamless interoperability solutions.
When investing, consider both the chain and its ecosystem's growth.
👉 Cross-Chain Bridges: A Detailed Guide
Conclusion: Public Chains Are the Foundation of Blockchain Ecosystems—and a Prime Investment
Investing in public chain tokens is like acquiring land along critical pathways in an undeveloped territory. Some routes may thrive, while others stagnate. Choosing wisely involves evaluating tokenomics and the chain's potential for long-term value.
Further Reading:
2025 Public Chain Rankings: Which Is the Strongest?
GameFi Blockchains: 6 Major Gaming Public Chains and Their Ecosystems
FAQ Section
Q: What makes public chains different from private chains?
A: Public chains are open, decentralized, and transparent, while private chains restrict access and are more centralized.
Q: Why invest in public chain tokens?
A: They represent foundational infrastructure in the blockchain space, with potential for value appreciation as ecosystems grow.
Q: How do public chains achieve scalability?
A: Through innovations like Layer-2 solutions, multi-chain structures, and optimized consensus mechanisms (e.g., PoS, Avalanche Protocol).
Q: What are the risks of investing in public chains?
A: Market volatility, technological challenges, and competition can impact performance. Research and diversification are key.
Q: Which public chain is best for DApps?
A: Ethereum leads in DApp activity, but alternatives like Solana and Avalanche offer faster transactions and lower fees.
Q: How do I choose a public chain to invest in?
A: Evaluate factors like adoption, developer activity, tokenomics, and real-world use cases.