Mastering Blockchain - Second Edition

Private blockchain

Private blockchains are inherently fast because no real decentralization is required and participants on the network do not need to mine; instead, they can only validate transactions. This can be considered as a workaround to the scalability issue in public blockchains; however, this is not the solution to the scalability problem. Also, it should be noted that private blockchains are only suitable in specific areas and setups such as enterprise environments where all participants are known.