Overview
Private blockchains are essentially distributed databases with cryptographic security. They are used internally by companies to improve efficiency and data integrity while maintaining strict privacy.
Characteristics
- Centralized Control: One entity has final say over the network.
- High Speed: Can process transactions very quickly due to the small number of nodes.
- Privacy: Data is not visible to the general public.
Comparison
While they use blockchain technology, they lack the decentralization and censorship resistance of public blockchains.