argot web3 core concepts explainer series
Your fast-reference library for understanding the core ideas behind Web3, digital assets, and decentralized technology.
Designed for business leaders, innovators, and decision-makers.
Your fast-reference library for understanding the core ideas behind Web3, digital assets, and decentralized technology.
Designed for business leaders, innovators, and decision-makers.
Summary:
A public blockchain is designed to be open by default. Unlike private or permissioned systems, there is no gatekeeper controlling who can join, transact, or inspect the ledger.
Key characteristics of public blockchains include:
Open participation — anyone can use the network
Transparent data — transaction history is publicly verifiable
Decentralized validation — no single entity controls consensus
Censorship resistance — transactions cannot easily be blocked or reversed
These properties make public blockchains fundamentally different from traditional databases or enterprise systems, even when the underlying technology appears similar.
How Public Blockchains Work (Conceptually)
At a high level:
Users submit transactions to the network.
Validators or miners verify transactions according to protocol rules.
Valid transactions are grouped into blocks. Blocks are added to a shared, immutable ledger
Consensus mechanisms ensure that participants agree on the state of the ledger without trusting one another.
Why it matters for business:
Public blockchains introduce a new trust model. Instead of trusting:
- A company
- A consortium
- A platform operator
Participants trust:
- Open-source codeEconomic incentives
- Cryptographic verification
For businesses, this enables:
- Neutral settlement layers
- Reduced reliance on intermediaries
- Global interoperability
- Predictable rule enforcement
However, it also introduces tradeoffs around privacy, performance, and compliance.
Real-World Examples:
A payments or settlement system built on a public blockchain allows any participant worldwide to transact without onboarding approval, while relying on the network itself to enforce rules and finality.
This model is particularly useful where neutrality and auditability matter more than centralized control.
Common Misconceptions
“Public blockchains are anonymous.”
Transactions are typically pseudonymous, not anonymous.
“Public means insecure.”
Security is enforced through decentralization and incentives, not obscurity.
“They can’t support real businesses.”
Many production systems already rely on public blockchains for settlement and coordination.
How Organizations Can Begin Experimenting
Organizations often start by:
- Using public blockchains for settlement or verification layers.
- Building non-sensitive workflows first.
- Combining public infrastructure with off-chain or permissioned components
This hybrid approach balances openness with operational control.
Related Concepts: Private / Permissioned Blockchains, Blockchain Consensus, Decentralization, Finality, Public vs Private Infrastructure
One-Sentence Summary: A public blockchain is a decentralized network where anyone can read data, submit transactions, and participate in validation without requiring permission from a central authority.
