Not all blockchains are the same. They differ in who can participate, who controls them, and what trade-offs they make between openness and performance. Understanding these distinctions helps clarify why different blockchains are used in different contexts — and why KIRAPAY operates exclusively on public chains.

1. Public Blockchains

A public blockchain is fully open and permissionless: anyone can read it, write to it, and participate as a validator — without seeking approval from any authority. There is no owner, no administrator, and no central point of control.

Key Characteristics

• Fully transparent — every transaction is visible to anyone, anywhere

• Permissionless — no account, identity, or approval needed to participate

• Censorship-resistant — no entity can block a valid transaction

• Trustless — participants don't need to trust each other; cryptography and consensus enforce the rules

• Decentralised — thousands of nodes worldwide; no single point of failure

Trade-offs

• Speed — public consensus among thousands of nodes is slower than a private system

• Privacy — all transactions are publicly visible (though wallet addresses are pseudonymous)

• Scalability — high transaction volume can lead to congestion and increased fees

• Examples: Bitcoin, Ethereum, Solana, Polygon, Base, Arbitrum, Avalanche, BSC

💡  For Merchants

KIRAPAY operates exclusively on public blockchains. This means every payment you receive is independently verifiable by anyone — you, your customer, or a third party — without trusting any intermediary. No bank, no processor, no KIRAPAY itself can alter or reverse a confirmed on-chain transaction.

2. Private Blockchains

A private blockchain is controlled by a single organisation. Only authorised participants can read data, submit transactions, or act as validators. In practice, a private blockchain is closer to a traditional database with some blockchain-like properties than a truly decentralised system.

Key Characteristics

• Permissioned — participants require approval to join

• Controlled — one organisation sets the rules and can override them

• Fast — fewer participants means faster consensus

• Private — transaction data is only visible to authorised parties

• Not trustless — you must trust the controlling organisation

• Examples: Hyperledger Fabric (IBM), Corda (R3), many enterprise internal chains

⚠️  Not Truly Decentralised A private blockchain removes the key benefit of public chains: trust removal. If one organisation controls it, participants must trust that organisation — which reintroduces the same counterparty risk that public blockchains were designed to eliminate.

3. Consortium (Federated) Blockchains

A consortium blockchain sits between public and private. Control is shared among a pre-approved group of organisations — for example, a group of banks, healthcare providers, or logistics companies. No single entity has unilateral control, but participation is restricted.

Key Characteristics

• Semi-decentralised — multiple organisations share governance

• Permissioned — membership requires approval from the consortium

• More trusted than private, less open than public

• Practical for industries where participants know each other but don't fully trust each other

• Examples: Quorum (JPMorgan), Energy Web Chain, Marco Polo (trade finance)

4. Layer 2 Networks

Layer 2 is not a separate blockchain type — it's a scaling solution built on top of an existing Layer 1 public blockchain (typically Ethereum). Layer 2 networks process transactions off the main chain for speed and cost, then periodically submit compressed proofs back to the Layer 1 for security.

How Layer 2 Works

• Users transact on the Layer 2 network, which processes transactions at high speed and very low cost

• Transactions are batched and compressed into a proof

• The proof is submitted to the Layer 1 blockchain (Ethereum), inheriting its security

• If anyone disputes a transaction, the Layer 1 acts as the final arbiter

Two Types of Layer 2

• Optimistic Rollups (Arbitrum, Optimism, Base) — assume transactions are valid by default; disputes trigger a challenge period. Simple and flexible.

• ZK-Rollups (zkSync, Polygon zkEVM, Starknet) — use zero-knowledge proofs to mathematically verify every batch of transactions. No challenge period needed; near-instant finality.

• Examples: Arbitrum, Base, Optimism, Polygon zkEVM, zkSync

💡  Why Layer 2 Matters for KIRAPAY

Several of KIRAPAY's lowest-cost, fastest settlement options — including Base and Arbitrum — are Layer 2 networks. They inherit Ethereum's security while offering gas costs of fractions of a cent and settlement in seconds. For merchants, this means a fast, cheap checkout experience without sacrificing on-chain security.

Comparison: All Four Types Blockchain at a Glance