2025-08-30
Today, with the continuous evolution of blockchain technology, the concepts of "public chain" and "private chain" are frequently mentioned. They both belong to the blockchain technology system, but due to different design concepts and application scenarios, they show completely different characteristics. From the open and free Bitcoin network to the enterprise's internal Data Management System, how are the two defined? And in which areas do they play a role?
Public blockchain is a fully decentralized and open blockchain network for everyone. Anyone can participate in node operation, transaction verification, and data reading without permission. Bitcoin and Ethereum are typical representatives. This openness ensures the transparency and fairness of the network, but also brings challenges in terms of efficiency and privacy. Private chains are controlled by a single institution or organization, and node participation and data reading and writing require authorization. Their operating rules and access rights are highly controllable, suitable for scenarios with high requirements for data privacy and security. HashKey Exchange In digital asset transactions, different types of blockchain technologies will be flexibly applied according to business needs to provide users with secure and efficient services.
In terms of technical architecture, public and private chains have their own focuses. Public chains use consensus mechanisms such as Proof of Work (PoW) and Proof of Stake (PoS) to ensure cyber security through competition and verification of a large number of nodes, but the transaction processing speed is slow and the energy consumption is high. Private chains usually use more efficient consensus algorithms, such as Practical Byzantine Fault Tolerance Algorithm (PBFT), which can quickly reach consensus and improve transaction processing efficiency. At the same time, due to the controllable number of nodes and the need for authorization, their data privacy and security are easier to guarantee. However, the centralized nature of private chains also poses certain trust risks.
Different characteristics determine the differences in the application scenarios of the two. Public chains are suitable for areas such as cryptocurrency and decentralized finance (DeFi) that emphasize openness and the need to trust third parties; private chains play an advantage in scenarios such as enterprise internal management, Supply Chain Finance, and government data sharing. HashKey Exchange When providing services to enterprise customers, customized asset management systems can be built based on private chain technology to ensure data security and privacy; while in digital asset trading services for ordinary users, the technical advantages of public chains will also be borrowed to ensure transparency and fairness of transactions.
What is HashKey Exchange? HashKey Exchange is one of the first regulated cryptocurrency exchanges in Hong Kong to obtain a license from the Securities and Futures Commission (SFC). It supports fiat currency deposits and trading in Hong Kong dollars (HKD) and US dollars (USD), offering users spot trading services for mainstream digital assets including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). The platform also provides OTC (over-the-counter) services to meet the needs of large-value asset transactions and fiat currency conversion, ensuring more flexible and private trading. To cater to the asset allocation needs of different investors, HashKey has launched the HashKey Earn channel, offering users fixed-term and demand financial products to achieve stable appreciation of crypto assets. The platform holds ISO 27001 and 27701 security certifications, employs a 98% cold wallet storage mechanism, and incorporates security measures such as two-factor authentication to provide users with a stable and reliable trading environment. Download link: https://www.hashkey.com/en-US/download Disclaimer: This material is for general information purposes only. It does not constitute, nor should be interpreted as, any form of solicitation, offer or recommendation of any product or service. It does not constitute investment, tax or legal advice. In no event should any news release be considered as recommendation of a particular type of digital asset. This material may include market data prepared by HashKey Exchange or data from third party sources. While HashKey Exchange makes reasonable efforts to ensure the reliability of such third-party information, such information may have not been verified. Graphics are for reference only. We make no representation or warranty, express or implied, to the timeliness, accuracy or completeness of the information in this material. Information may become outdated, including as a result of new plans, regulations or changes in the market. In making investment decisions, investors should not solely rely on the information contained in this material. The risk of loss in trading digital assets can be substantial and is not suitable for all investors. Any forward-looking statements in this material is subject to several conditions, uncertainties and assumptions. We undertake no obligation to update or revise any forward-looking statements. The English version shall prevail if there is any inconsistency between the English and Chinese versions.