Will Corporate Blockchain Survive Amid Competition with Public Blockchains?

Jakarta, Pintu News – Corporate blockchain is gaining popularity among large companies such as JP Morgan, Circle, and Stripe. They are leveraging their existing customer base and trying to overcome the technical limitations of public networks. However, the big question that arises is: will this trend last in the long run?

Why are Companies Building Their Own Blockchains?

Growing institutional adoption of crypto is driving the development of corporate blockchains. Established crypto players like Circle and Tether (USDT), as well as other large corporations like JPMorgan and FIFA, are the main drivers of this trend. They see blockchain as a solution to improve efficiency and security in their business operations.

However, these corporate blockchains are often designed to meet a company’s specific needs, rather than for the public good. This potentially reduces transparency and increases corporate control over data and transactions, which goes against the basic principle of decentralization that blockchain technology promotes.

Limited Public Infrastructure

The current public blockchain infrastructure often does not meet the needs of large enterprises. Networks like Bitcoin (BTC) and Ethereum (ETH) face challenges of slow transaction speeds and security concerns. These limitations are driving companies to develop their own blockchain solutions that are more controlled and customizable to their internal needs.

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However, this approach results in a system that is more closed and dependent on a single entity, which reduces the main advantages of blockchain technology which are decentralization and resistance to censorship. This raises questions about the long-term sustainability of corporate blockchains if they cannot offer the same benefits as public networks.

Corporate Blockchain Design Disadvantages

Corporate blockchains are often designed with the core value of decentralization in mind. Companies tend to treat blockchain as a tool to improve operational efficiency, rather than a platform to create transparency and trust.

According to Malekan, this approach means that many corporate blockchains will not last long as they do not utilize the full potential of the technology. On the other hand, public blockchains such as Bitcoin (BTC) and Ethereum (ETH) continue to grow in popularity and challenge the traditional financial system by reducing the advantages and control held by financial institutions. This suggests that truly open and decentralized protocols may be more sustainable in the long run.

Conclusion

Although corporate blockchains offer an attractive solution for companies to overcome the limitations of public infrastructure, there are still many challenges to be faced. Their success in the long run will largely depend on their ability to integrate the principles of decentralization and transparency that are the foundation of blockchain technology. Without this, they may only be a temporary solution that cannot compete with the strength and resilience of public blockchains.

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Reference

• BeInCrypto. Corporate Blockchains for Payments Are Gaining Popularity, But Will They Last?. Accessed on October 8, 2025
• Featured Image: Generated by AI