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Private Blockchain Development in the UAE

Last Updated on June 5, 2024 by Hamza Khan

The UAE is a global hub for cryptocurrency. The country has an environment that promotes blockchain innovation and adoption. Also, the government supports the growth of the blockchain ecosystem through initiatives such as government blockchain strategies and the establishment of free zones dedicated to technology and innovation. Blockchain technology has been adopted in sectors such as finance, real estate, logistics, healthcare, and trade. Nonetheless, the country still needs to explore private blockchain fully.

Private Blockchain 

Private blockchain involves a decentralized ledger system that is only accessible to authorized participants. Private blockchains are restricted to certain people or companies, unlike public blockchains, where anyone can join the network. This level of control over access and governance makes private blockchains an ideal solution for businesses seeking to streamline their operations while maintaining data privacy and security. Although public blockchains like Bitcoin and Ethereum have gained widespread attention, private blockchains offer distinct advantages that make them an attractive choice for companies operating in the UAE.

Benefits of Private Blockchain

Data Security and Privacy

With the constant rise in cyber threats and data breaches, businesses must safeguard sensitive information. Private blockchains provide a secure and tamper-proof environment for data storage and management through permissioned access and cryptographic protocols. This level of security is important in industries where data confidentiality and integrity are paramount.

Control and Security

The entity serving as the blockchain gateway manages network access and participant visibility. This dual control results in faster transactions since private blockchains have significantly fewer nodes than their public counterparts. It also ensures that participants can transact securely without the risk of competitors accessing or interpreting their data. 


Unlike public blockchains, where governance is decentralized and consensus is achieved through a majority of participants, private blockchains offer businesses greater control over governance and decision-making processes. This control allows companies to implement changes, updates, and upgrades to the blockchain network swiftly and efficiently without relying on external consensus.

Customization and Flexibility

Private blockchain development allows businesses to customize network architecture, consensus mechanisms, and governance models to meet specific requirements. This customization enables organizations to design blockchain solutions that integrate easily with existing systems and workflows, ensuring minimal disruption and maximum efficiency.

Scalability and Manageability

Private blockchains provide better scalability than public blockchains as they are not limited by network congestion or throughput. Private blockchain networks typically start on a small scale with only a few participants. The network expands by gradually including more trading or business partners and their respective nodes. Small-sized private blockchain networks offer two main advantages in terms of manageability: reduced downtimes and maximized uptimes and facilitated scalability. It’s unlikely that large groups of participants will be included at once.

Final Words 

Private blockchain creates a system only authorized people can access. This type of blockchain is different from public blockchain. Also, it has advantages over the public blockchain. Some of these benefits include scalability, data security, flexibility, etc.

Frequently Asked Questions 

Does Blockchain Work in Dubai?

Yes, blockchain works in Dubai.

What is the Point of a Private Blockchain?

The point of a private blockchain is to restrict general access to a blockchain network.

What are the Benefits of Private Blockchain over a Database?

Some benefits of private blockchain over a database are immutability, user control, faster transactions, etc.

What are the most Popular Private Blockchains?

Some of the most popular private blockchains are Hyperledger, Ethereum Enterprise, Cubix, R3 Corda, SoluLab, etc…

Which is Faster, Public or Private Blockchain?

Private Blockchain is faster than public blockchain.

How much is a Private Blockchain?

A private blockchain costs at least $10,000. The more complicated the application is, the more expensive it will be.

What are the Strategic Pillars of the Blockchain Strategy in Dubai?

The strategic pillars of the blockchain strategy in Dubai are government efficiency, industry creation, and international leadership.

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