A private blockchain is a type of blockchain mainly used by enterprises where access to it is restricted to only employees or invited guest users.
These types of blockchains are not open to the public, and they are usually controlled by a company that has complete control over the network.
The network owner can do whatever it wants to the data on the blockchain, including editing or deleting it.
Private blockchains still use cryptography to secure the blockchain, but they’re less focused on identity protection and transparency, as the blockchain already controls who has access to it.
Private blockchains are still concerned with running a distributed ledge that can’t be altered, as it’s used across different sensitive business units including payroll, accounting, and logistics where keeping data secure and accurate is important.
Due to their centralized nature, private blockchains inherently are more exposed to security threats and breaches.
Private blockchains generally have fewer nodes managing security on the blockchain than more popular and heavily used chains, as they cater to a smaller audience of users. This reduces not only the number of miners or validators available to validate transactions but also means there are fewer nodes transmitting, receiving, and verifying network communications.
Being that the network is owned and operated usually by an enterprise, private blockchains are not decentralized. This creates potential issues for the network, where malfunctions with the centralized nodes