Complete Guide to Public Blockchains: Principles, Architecture, Pros & Cons, and Use Cases

Basic Definition and Principles of Public Blockchains

A Brief Introduction to Blockchain

Before understanding public blockchains, it’s essential to know how blockchain works.
Blockchain is a type of distributed ledger technology that packages transaction data into blocks, which are then chronologically linked into a chain. This forms an immutable record of transactions.

Each block contains multiple transactions and is linked to the previous block using a cryptographic hash. This hash ensures that all blocks are connected in order and cannot be tampered with. If one block’s hash is altered, all subsequent hashes will no longer match.

( “How blockchain works” video demo)

What Is a Public Blockchain?

A public blockchain is an open network that anyone can join, use, and maintain.

There are no entry barriers—anyone with internet access and a computer can:

• View data on the public ledger

• Send transactions

• Become a validator to participate in block creation

This openness ensures true decentralization—no single entity can control or audit the network.

Types of blockchains:

• Public blockchain: most open and transparent

• Private blockchain: access restricted to authorized members

• Consortium blockchain: managed by a group of organizations (semi-public)

In short:
A public blockchain is like a fully open digital ledger where anyone can view or record transactions at any time.

Technical Architecture of Public Blockchains

Consensus Mechanisms

Consensus mechanisms determine how new blocks are added without a central authority and ensure all nodes maintain identical records.

Common consensus mechanisms:

• PoW (Proof of Work): miners compete with computational power (e.g., Bitcoin)

• PoS (Proof of Stake): validators are chosen based on token staking (e.g., Ethereum)

• DPoS (Delegated Proof of Stake): token holders vote for delegates to produce blocks (e.g., EOS)

(detailed article on consensus mechanisms)

Decentralized Network

Decentralization means there’s no central operator. Every node stores data and verifies transactions, and the network runs independently of any central server.

Key traits:

• Resilience: if one node fails, others keep running

• Security: an attacker would need to control most nodes to alter records

• Shared governance: rules and upgrades are decided collectively, not by a single entity

Advantages and Disadvantages of Public Blockchains

Advantages

• Decentralization: no need to trust a central authority
• Transparency: all data is publicly available and verifiable
• Immutability: once data is recorded, it cannot be changed
• Openness & censorship resistance: anyone can interact with the network
• Smart contracts: developers can build applications directly on-chain

Disadvantages

• Slower transaction speeds: due to global distribution of nodes
• Higher fees: network participants are incentivized with transaction fees (gas)
• Scalability limitations: the blockchain trilemma—security, decentralization, and efficiency—can’t all be optimized at once
• Slow upgrades: decentralized governance makes protocol changes time-consuming and complex

Popular Public Blockchains

Ethereum

The 2nd largest cryptocurrency and the first to support smart contracts.

Pros:
• Pioneer in smart contracts with the most robust ecosystem
• Large developer and user base
• High security and decentralization
• Widely supported by wallets and exchanges

Solana

A high-speed, low-cost blockchain ideal for gaming and NFTs.

Pros:
• Handles thousands of transactions per second
• Near-zero fees
• Ideal for high-frequency interactions
• Rapidly expanding DeFi and NFT ecosystem

BNB Chain

A smart contract chain led by Binance, EVM-compatible and user-friendly.

Pros:
• Low fees, fast transactions
• Compatible with Ethereum apps
• Access to Binance's large user base
• Vibrant DeFi and GameFi ecosystem

Real-World Applications of Public Blockchains

1. Finance (DeFi and Payments)

• DEXs (e.g., Uniswap): swap tokens directly from wallets
• Lending protocols (e.g., Aave): borrow with crypto collateral, interest set by the market
• Stablecoin transfers (e.g., USDT, USDC): fast, low-cost international payments

2. Gaming & Entertainment (GameFi)
• Blockchain games give players real ownership of in-game assets (NFTs, tokens), enabling free trade and “play-to-earn” models

3. NFTs & Digital Collectibles
• NFTs provide uniqueness and ownership of digital assets (e.g., art, music, virtual land)
•
4. Supply Chain & Industry Tracking
• On-chain records for manufacturing, logistics, and inspections ensure traceability and anti-counterfeiting (e.g., food origin, luxury goods)

Recent Trends in Public Blockchains

Modular Blockchains: Specialization for Scalability

Traditional blockchains handle everything—consensus, data storage, execution—limiting scalability.

Modular blockchains separate responsibilities into different layers or chains, allowing specialization.

Example:
Celestia focuses on data availability; L2s can post transaction data there instead of Ethereum, cutting costs by over 90%

Layer 1 vs. Layer 2 Scaling

Layer 1: base blockchains like Bitcoin or Ethereum—secure but limited in speed

Layer 2: built on top to handle transactions off-chain or on sidechains, reducing main chain load

Examples:Arbitrum, Optimism, zkSync, StarkNet (Ethereum Layer 2 solutions)

Zero-Knowledge Proofs (ZKP) and Privacy

ZKPs let users prove something without revealing the details (e.g., proving you're 18+ without showing your birthdate).

Applications:

• Privacy: hide amounts and addresses (e.g., Zcash)

• Scalability: batch processing with ZK Rollups reduces computation and fees

Examples:

‍StarkNet and zkSync Era—ZK Rollup projects balancing speed and privacy

Conclusion

From crypto trading to DeFi, NFTs, and supply chain, public blockchains are rapidly expanding in usage and scale.
They’re not just a passing trend but are becoming the infrastructure of the digital economy.

Let’s keep an eye on how public blockchains evolve—because they just might change the world.

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