What is the difference between public and private blockchain in finance?

In finance, the main difference between public and private blockchains lies in their access and control. A public blockchain, such as Bitcoin or Ethereum, is open to everyone and operates on a decentralized network, which means no single entity has control over it. Transactions on a public blockchain are verified by a network of users, known as nodes, through a consensus mechanism.

On the other hand, a private blockchain is a closed network that is only accessible to a select group of participants. The control of the network is in the hands of a single entity or a consortium of entities. Transactions on a private blockchain are usually verified by a smaller group of preapproved nodes.

In terms of their use in finance, public blockchains are typically used for cryptocurrencies and other applications that require open and transparent transactions. Private blockchains are used for enterprise applications such as supply chain management, trade finance, and asset tracking, where confidentiality and control are important factors.