Private Blockchain Introduction

Private Blockchain: Controlled Access for More Security and Trust


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As the Web3 world evolves, more businesses realize the importance of it and how it can be integrated into their day-to-day operations. These businesses benefit from safeguarded data and innovative solutions, brought to them by blockchains, which ultimately helps boost them above any competitors in their industries. With the world rapidly being digitized, many businesses might face issues regarding how they store confidential data, how they process transactions, interact with partners and customers and many more important aspects of running a business. 

Blockchains have the technology and tools to transform any sort of traditional business that is looking to make its records immutable and its governance decentralized. However, it’s not enough for you to go online and look up blockchain and just sign up for it. There are different types of blockchains, different blockchains in general and each comes with different benefits and use cases. With that being said, let’s explore what private blockchain is and how it can help bring success to your business, what its benefits are and how it reshapes industries by unlocking new possibilities for them.  

What Is a Private Blockchain

Blockchains are a very versatile technology, and they come in four types – public, private, consortium and hybrid. The most famous blockchains, like Bitcoin and Ethereum, are public, which means they are decentralized and not controlled by a single entity/organization. This is good because of the way they operate, as they rely upon users to verify the transactions in those blockchains. However, public blockchains are designed to execute certain operations under specific conditions and are not tailored for the unique needs of individual businesses, unlike different types of blockchains. Therefore, understanding what a private blockchain is becomes essential when considering the various business models it might affect.

What Is a Private Blockchain?
Definition Benefits Use Cases Examples
A private blockchain is a blockchain which only a specific group of users can access, usually controlled and approved by an organization, hence permissioned
  • More secure and closed control
  • More practical
  • Customizable and tailored to specific needs
  • Cost-efficient
  • Scalable
Private blockchains can be used for any industry for different reasons, like supply chain management (allowing traceability), financial services (security over transactions) and healthcare (protecting sensitive data) Some great examples of private blockchains are Hyperledger Fabric (versatile ledger for various applications), IBM (offering Blockchain-as-a-Service) and R3 Corda (facilitates secure and efficient transactions)

Your business, whichever industry it may be in, would need an extra layer of security and less decentralized supervision. It would need a platform that is practical, cost-efficient and scalable, to suit any future and unpredicted changes. Let’s explore in more detail what a private blockchain is and why it is the best Web3 solution for your business. 


A private blockchain is a distributed digital ledger where access to the network is restricted to a specific group of participants. Unlike public blockchains, which are open to anyone, private ones are permissioned and operate within a closed ecosystem. This controlled access allows organizations to maintain confidentiality, enhance security, and regulate participants. Blockchains which are private are often used by businesses or governments for internal processes, ensuring that only authorized parties can validate transactions and contribute to the consensus mechanism.

Access Control

Access control is a key feature of blockchains, including private ones, and it offers significant benefits for businesses seeking an additional layer of supervision over their processes. The primary reasons why this technology is so important include: 

  • Data Confidentiality – ensures that the confidential information of every business is protected from unauthorized users 
  • Security – controls each network and its different type of users who have permission over various actions and content and prevents malicious activities 
  • Fraud Prevention – oversees the processes of transaction validation and writing on the blockchain so that fraud can be prevented 
  • Compliance – helps with adhering to regulatory requirements and legal standards of your business’ specific industry   

Through access control, businesses can ensure that their blockchain network is as secure as possible and set up to resist any fraud attempts. To enhance this even more, there should also be network control arrangements set in place.

Network Control

Having that first firewall to protect who comes in and out of the blockchain and what activities they are allowed to perform is vital for a business utilizing the blockchain technology. It’s however also important to control that network properly, and here’s how that is done: 

  • Network Control – allows you to define and enforce governance rules withing the network, but also to establish which users have specific roles and responsibilities 
  • Resource Management – helps with the efficient management of resources, so that the network can operate smoothly and to regulate which resources are used by whom and how they are accessed 
  • Consensus Maintenance – these are important for the way that transactions are validated, and overlooks who can partake in the consensus processes, maintaining trustworthiness withing the entire blockchain 
  • Conflicts Resolution – ensures that conflicts can be monitored and that you can provide the resolutions needed by enforcing accessed control and preventing unauthorized attempts on actions 

Knowing how to ensure access and network control and why those features are important is the first step for your business to strategize on implementing a blockchain network. To give you a better understanding of why your business might need a blockchain implementation, let’s look at the benefits of it first.

Benefits of Private Blockchain

To consider the endless possibilities of blockchains is a huge first step towards bringing success to your business. It should then be followed by considering all the benefits that this type of blockchains can further lift your business to new heights. Be it through elevated privacy and security or refined scalability and efficiency, a private digital ledger can enhance all your business operations.

Elevated Privacy and Security through restricted access and control over user roles Refined Scalability and Efficiency by having fewer participants and faster transaction processes and improved performance 
Personal Customization and Control allowing to tailor the network to personal needs and requirements Ensured Regulatory Compliance which is making it easier for businesses to comply with industry regulations and standards 

Further benefits are those of having the option over personal customization over how your permissioned blockchain network is set up and how you control it. Or the fact that blockchains help to ensure that your business meets any regulatory compliances which are standards for your industry. Let’s look in more detail at how those things can exactly benefit your business.

Enhanced Privacy and Security

Enhanced privacy and security provide businesses with a protected digital network. By restricting access to authorized participants, sensitive data remains confidential, shielding proprietary information from unauthorized eyes. This heightened level of control mitigates the risk of data breaches and cyber threats. The technology also utilize robust encryption and access controls, ensuring that only trusted entities engage in transactions and validate information. The result is a secure, tamper-resistant infrastructure, fostering a climate of trust between you and your partners/users. This benefit is crucial for businesses safeguarding critical data, maintaining compliance, and fortifying their digital operations against evolving cybersecurity challenges.

Improved Scalability and Efficiency

Improved scalability and efficiency in blockchains with permissioned access empower businesses with faster transaction processing and heightened performance. The closed, permissioned nature of these blockchains allows for streamlined operations among a known set of participants, ensuring quicker consensus and reduced verification times. This results in overall enhanced efficiency, which is particularly beneficial for businesses requiring quick and reliable transaction operations. The increased scalability accommodates growing business demands, ensuring the blockchain network can seamlessly handle higher transaction volumes without compromising speed or performance.

Customization and Control

In the realm of private blockchain, the invaluable benefit of having choice over customization and control empowers businesses to tailor blockchain parameters to their unique needs. This control extends to configuring consensus mechanisms, smart contracts, and security protocols, offering a clear solution aligned with specific business needs. This capability ensures a seamless integration of blockchain technology into existing operations, fostering adaptability and efficiency. The ability to mold the blockchain ecosystem to fit organizational requirements not only enhances performance but also instills a sense of ownership, enabling businesses to optimize processes and elevate their competitive edge within a secure and controlled digital environment.

Regulatory Compliance

Regulatory compliance ensures that businesses adhere to industry standards and legal requirements without worrying about missing out on anything. This key benefit minimizes the difficulties associated with compliance, offering a controlled environment where organizations can implement necessary measures without exposing sensitive data. Permissioned blockchains empower businesses to enforce access controls, encryption, and auditing mechanisms, thus creating a transparent and secure regulatory framework. This also creates an even deeper trust among businesses and their partners and users. 

Private vs Public Blockchain

Blockchains are an ever-evolving technology and it’s vital to know about the different types of blockchains currently available for businesses. Out of those, the private and public blockchains are the most popular ones.

What Is a Private Blockchain?
Public Blockchain Vs. Private Blockchain
Open access to anyone wishing to join the network Restricted access to members who need to be approved
Decentralized = no single entity is in control Centralized = a select organization is in control
More applicable to businesses handling operations like cryptocurrencies and DeFi More applicable to businesses requiring privacy and controlled access
Examples are the Bitcoin & Ethereum Blockchains Examples are the Hyperledger Fabric & R3 Corda Blockchains

While both blockchain types operate similarly on a surface level, they are quite different in other aspects, which are key components that you should consider when implementing this ground-breaking technology in your business. Public blockchains, for example, are decentralized, meaning no one is really in control over the operations and transactions happening within them. They are also open to anyone wishing to join and are more applicable to businesses which want to operate with cryptocurrencies and DeFi.  

Private blockchain, on the other hand, are centralized, meaning that a single entity or a select organization is in control over everything. They have restricted access to new members, which must be approved before joining the network, and are for businesses wishing to have more privacy and controlled access over their operations.

How Private Blockchain Benefits the Business and Different Industries

Exploring various sectors, we find numerous private blockchain examples that illustrate how this technology is revolutionizing industries by enhancing security and efficiency. For instance, in the financial sector blockchain technology facilitates secure and rapid transactions, reducing the need for intermediaries and lowering costs. In supply chain management, they enable real-time tracking of goods, ensuring transparency and reducing the risk of counterfeits. Below you can find more private blockchain use cases that reflect some of the benefits which technology is bringing to the business world.

Financial Services

Businesses in the financial services industry can benefit from a private digital ledger as it helps to streamline the clearing and settlement processes. This type of blockchain can also provide a business with enhanced security for confidential data, be it user data or financial data, and can also provide security over transactions. The financial services industry can also benefit from these blockchains as they help reduce or even eliminate fraud all together and they can bring businesses lower costs, innovative solutions and enable real-time settlements.


The gaming industry can grow even more by implementing blockchain technologies for several reasons. Firstly, blockchains can help this industry to regulate in-game asset ownership by securely verifying the assets which can be traded and sold. It can also help the gaming industry by preventing fraud and ensuring the integrity of in-game purchases is maintained. Bringing an innovative touch to the gaming industry, private blockchain applications can introduce cross-game compatibility, enabling assets to be interoperable across different gaming platforms. All this combined will enhance the overall user experience for any business in the gaming industry.


Blockchain technology emerged as a game-changer for businesses in the sports industry. Revolutionizing ticketing, they ensure foolproof digital tickets, prevent ticket counterfeiting and ensure secure and transparent ticket transactions. Beyond tickets, the gaming industry can also introduce fan tokens, empowering businesses to engage fans through exclusive content, voting privileges on club decisions, offering exclusive sport NFTs and access to special events. These blockchains securely store and share athlete performance data, enhancing training, scouting, and fan engagement. By fostering transparency, security, and innovative fan experiences, permissioned digital ledgers elevate the sports industry’s operational efficiency and fan relations to an entirely new level.


In the music industry, blockchains offer a sound solution for businesses. With automated smart contracts, transparent and timely royalty distribution are ensured, benefiting artists and rights holders. Immutable record-keeping on the blockchain safeguards copyright data, preventing unauthorized usage and simplifying licensing processes. Additionally, private blockchains empower direct fan engagement by enabling exclusive content releases, limited editions, offering exclusive music NFTs and direct sales. This innovative approach enhances the connection between artists and fans, creating a more efficient and rewarding ecosystem for the music industry.


A business within the entertainment industry too can benefit from private blockchains through industry transformative solutions. Through efficient digital rights management, content creators can ensure fair compensation and protection of intellectual property. Transparency of published entertainment media becomes seamless, tracking production and distribution, curbing piracy, and enhancing accountability. Additionally, these permissioned networks foster innovative audience engagement by enabling unique interactions. For example, fans can participate in voting on plot developments, creating an immersive and collaborative entertainment experience. Blockchains can also provide the entertainment industry with other Web3 tools for additional revenue streams, like NFTs.


Blockchains offer the healthcare industry a future-proof solution for secure and efficient management of patient records. By utilizing permissioned access, these blockchains enable authorized entities to share medical data effortlessly, enhancing collaboration among healthcare providers while safeguarding patient privacy. The tamper-resistant nature of blockchain ensures the integrity of patient records, reducing the risk of unauthorized access or data breaches. This technology not only eases information exchange but also establishes a trust framework, fostering a more interconnected and responsive healthcare ecosystem for improved patient care and data management, which is vital for patients and healthcare providers throughout the whole world.

Government Services

The government services industry is another one that can benefit from the more private type of blockchains as they offer significant advantages for it. For example, by enhancing transparency, they enable seamless tracking and verification of government operations, reducing bureaucratic inefficiencies. The secure, decentralized nature of permissioned blockchains ensures the safe storage and management of sensitive citizen data, protecting it from unauthorized access and tampering. This not only boosts data security but also ensures that the public trusts this industry. Ultimately, the privacy of blockchains empower governments to optimize processes, uphold transparency, and safeguard critical information, thereby advancing the efficiency and reliability of their services to the benefit of citizens and businesses alike.

Successful Cases of Private Blockchain in Business

Your business can achieve great things by implementing a blockchain system in its day-to-day operations. But it’s one thing to read how to do something, and entirely different to see successful examples of how it is properly executed. For that, here is a list of carefully picked businesses which have implemented private blockchain technology.


Spotify’s acquisition of the blockchain startup Mediachain to address music’s attribution problem is a perfect example of how private blockchain can be utilized in the music industry. Mediachain aimed to create a decentralized media library, providing a solution for attributing and compensating artists more accurately. By utilizing blockchain technology, Mediachain sought to establish a transparent and immutable record of attribution for creative works. Spotify’s acquisition of Mediachain indicated the music streaming giant’s interest in leveraging blockchain to improve royalty tracking, copyright management, and overall transparency in the music industry.

The move suggested Spotify’s commitment to addressing challenges related to proper attribution and compensation for artists in the digital music landscape and are a real game-changer for the industry.


French video game publisher Ubisoft has marked a pioneering move in the gaming industry with the launch of Quartz, a blockchain platform for non-fungible tokens (NFTs) associated with in-game items. Positioned as the first major game publisher to delve into the crypto space, Ubisoft introduces Digits, its inaugural product under Quartz. Digits comprises uniquely serialized in-game cosmetic items for Ghost Recon Breakpoint, fostering limited-edition releases and player resale options.

This venture signifies Ubisoft’s experimentation with blockchain for in-game asset management and digital ownership. The benefits include secure in-game transactions, fraud prevention, and heightened player engagement through genuine ownership of in-game assets.


FIFA partnered with blockchain innovator Algorand, which provided an official blockchain-supported wallet solution and acted as a regional supporter for the FIFA World Cup Qatar 2022™ and an official sponsor for the FIFA Women’s World Cup Australia and New Zealand 2023™. The collaboration focused on leveraging blockchain for secure value and asset exchanges, including non-fungible tokens (NFTs). FIFA President Gianni Infantino emphasized the organization’s commitment to innovation and sustainable revenue growth. Algorand, known for its environmentally responsible blockchain, contributed to FIFA’s digital asset strategy.

This partnership with FIFA, the most globally recognized and distinguished organization in sports, will showcase the potential that the Algorand blockchain has to transform the way we all experience the world’s game.

– Silvio Micali, founder of Algorand

The collaboration also explored ticketing solutions to combat counterfeit tickets and unauthorized reselling. This overall promised to enhance fan experience, bring security and efficiency in ticket distribution and reduce fraud, but also bring an innovative solution to the football and sports industry.

United Health Group

A collaborative effort among healthcare giants, including Humana, MultiPlan, Optum, Quest Diagnostics, and United Health Group, formed the Synaptic Health Alliance to address the challenges of accurate provider data management using blockchain technology. Despite billions spent annually on provider data management, accurate directories remain elusive, impacting stakeholders. The SHA views blockchain as a solution, offering transparency and verifiability, with the pilot project focusing on creating a permissioned blockchain for provider data exchange.

The benefits include cost savings, improved data accuracy, and a streamlined process. The emphasis falls on the potential for blockchain to revolutionize healthcare data management and the SHA’s commitment to positive industry-wide change.

J.P. Morgan

The American multinational financial services giant J.P.Morgan has introduced its own blockchain system, called Onyx. Blockchain Launch, a team within Onyx, focuses on developing and commercializing cutting-edge blockchain solutions. Positioned at the forefront, the Launch team leverages its knowledge, talent, and tools to bring blockchain-based applications, networks, and shared platform technology into production. With industry-leading expertise and rapid deployment methods, they offer solutions for challenging business use cases. Their services include commercializing digital applications on a proven tokenization platform, providing components for scalable solutions.

We want to essentially build the next generation of payment rails, while there is a lot of innovation happening in payments in general and most of that is the periphery of payments, the core rails have not changed.

– Naveen Mallela, Global Head of Coin Systems, Onyx by J.P.Morgan

They also assist in custom use cases and product development across various sectors, utilizing blockchain for innovations such as digital identity, native digital assets, renewable energy, robotics, and applications in Decentralized Finance (DeFi) and the Internet of Things (IoT).

How Private Blockchain Can Be Implemented in Businesses

To implement a permissioned type blockchain in business, there are a couple of steps that need to be thoroughly considered and planned: 

  1. Define the Purpose and Goals: Clearly outline the use case and objectives to tailor the solution to unique business needs 
  2. Choose The Best Consensus Mechanism For You: Select one like PoA, PBFT, or DPoS that aligns with your personal requirements 
  3. Set Up The Network: Establish a permissioned network with authorized nodes for transaction verification 
  4. Select Your Desired Blockchain Platform: Choose a platform such as Hyperledger Fabric, Corda, or Quorum based on business needs, as each comes with different benefits that need to be considered 
  5. Design Smart Contracts: Create detailed smart contracts for automating processes within the network 
  6. Ensure Data Encryption is Integrated and Perform Tests: Ensure robust encryption and conduct tests to ensure smooth performance 
  7. Publish and Maintain Network: Release the network and establish protocols for ongoing maintenance, updates, and backup procedures, sit back and watch as your business  

Of course, implementing blockchain technology in your business is easier said than done. So, if you’re looking for a more personal and seamless way to do it, the next point will show you exactly where to look for that.

Partner with a Crypto-Native Company

Collaborating with a crypto-native company for private blockchain integration ensures specialized expertise in blockchain technology like no other. This ensures streamlined blockchain implementation within your business, as well as optimized security, efficiency, and scalability. Crypto-native firms understand the nuances of blockchain governance, smart contract development, and tokenization, which creates a very strategic and beneficial partnership for your business to reach success.

A Web3-native company, such as DigitalArtists, has a team of experts which can structure a plan for your blockchain implementation from A to Z. Whether you’re planning to tap into the NFT world, or need a private network for your data, DigitalArtists has all the answers that you’re looking for, all with a white-label solution tailored to your specific needs.

Considerations Before You Start

Before either setting up your own blockchain network, or reaching out to a crypto-native company that can take on all the hard work for you and provide with the best results seamlessly, there are also other important things to think about. However enthusiastic you may be to jump into the Web3 realm of permissioned blockchain networks right here and right now, you should carefully consider the following list of important factors: 

  • Planning and Strategy 
  • Technology Selection 
  • Development and Deployment 
  • Training and Adoption 
  • Maintenance and Upgrades

Implementing private blockchains in your business requires a comprehensive approach, starting with thorough planning and strategy formulation. This involves aligning blockchain objectives with overall business goals. Technology selection follows, where the right blockchain platform and consensus mechanisms are chosen to meet specific business needs. The development and deployment phase involves designing smart contracts and integrating blockchain into existing systems.  

Training and adoption strategies are crucial for ensuring seamless integration, requiring education on blockchain fundamentals for both you and your employees, and an introduction to your partners/customers will also make them happy. Maintenance and upgrades are ongoing necessities, ensuring the blockchain remains secure, efficient, and up to date. Together, these considerations form a roadmap for businesses, ensuring a successful and sustainable integration of private digital ledgers into their day-to-day operations.

Challenges Private Blockchain Is Facing

Before integrating any type of blockchain into operations, businesses must carefully assess the potential challenges to ensure a smooth implementation process. A thorough consideration of these factors is vital for strategic planning, allowing organizations to proactively address issues and optimize the benefits of blockchain technology. This proactive approach not only enhances preparedness but also sets the stage for a successful and resilient incorporation of permissioned networks, ensuring that businesses navigate potential hurdles with foresight and efficiency.

Scalability Issues

Scalability can pose a slight challenge for blockchains, impacting their ability to handle increased transaction volumes efficiently. Addressing scalability issues is crucial to ensure that the blockchain network can seamlessly accommodate growth, maintain optimal performance, and meet the evolving demands of the blockchain and business ecosystem.

Centralization Concerns

The level of centralization is a main concern with permissioned network blockchains as the overall control is often in the hands of a single organization. Businesses must carefully address and mitigate these issues to maintain the decentralized and secure nature that blockchain technology promises, ensuring optimal transparency and trust in their blockchain implementations.

Interoperability Difficulties

Another slight challenge is that of interoperability, as seamless communication with external systems may require careful integration. Ensuring compatibility between different blockchain networks and traditional systems is essential for businesses to fully leverage the benefits of their blockchain implementations.

Private Blockchain Revolutionizing Industries with Secure, Tailored, and Efficient Digital Solutions

The adoption of private networks represents a transformative leap for businesses seeking secure, tailored, and efficient digital solutions while maintaining a private network. The revolutionizing impact extends across industries, offering unparalleled data privacy, controlled access, and streamlined processes. As businesses navigate digital transformation, the strategic integration of private blockchain is quite innovative. This is an integration that helps any business to overcome competitors, become a main name in its industry and to secure a promising future for itself.

Frequently Asked Questions

When thinking about implementing private blockchain technology within your business, knowledge is power! So, to summarize this article, here is a brief look over the most frequently asked questions on the topic.