What is the difference between a public and a private blockchain in banking?

In banking, a public blockchain is an open system where anyone can join, participate and validate transactions, while a private blockchain is a closed system that is only accessible to a select group of participants who have permission to access and validate transactions.

A public blockchain like Bitcoin allows anyone to participate in the network and validate transactions, while a private blockchain is usually used within a specific organization or consortium of organizations for the purpose of managing their internal processes and operations.

Private blockchains in banking are often used for use cases such as interbank transactions, supply chain management, and identity management, where the need for privacy, security and data confidentiality is paramount. Public blockchains, on the other hand, are used for cryptocurrencies and other use cases where transparency and decentralization are important features.