Interoperability Issues Between Private and Public Blockchains

Authors

  • Lucas Pereira Independent Researcher São Paulo, Brazil, BR, 01000-000 Author

DOI:

https://doi.org/10.63345/sjaibt.v2.i2.104

Keywords:

Blockchain, Public Blockchain, Private Blockchain, Interoperability, Cross-Chain Protocols, Smart Contracts, Consensus Mechanisms, Distributed Ledger

Abstract

Blockchain technology has evolved into a cornerstone of digital transformation by providing decentralized, transparent, and secure mechanisms for data management and value exchange. However, the rapid proliferation of heterogeneous blockchain platforms—ranging from public, permissionless systems such as Bitcoin and Ethereum to private, permissioned frameworks like Hyperledger Fabric and Corda—has resulted in significant fragmentation and siloed ecosystems. The inability of these platforms to interoperate seamlessly has become one of the most critical challenges hindering blockchain’s full potential. This study critically examines the interoperability issues between private and public blockchains, identifying the technical, architectural, regulatory, and governance barriers that prevent smooth integration.

The research integrates a systematic literature review, statistical enterprise adoption analysis, and comparative evaluation of real-world interoperability solutions (including Polkadot, Cosmos, and Hyperledger Cactus). Findings highlight five major categories of challenges: (1) consensus incompatibility between PoW/PoS-based public blockchains and PBFT/PoA-based private systems; (2) data schema and protocol mismatches leading to communication inefficiencies; (3) security vulnerabilities such as transaction replay attacks and oracle manipulation; (4) fragmented governance models complicating cross-chain trust frameworks; and (5) regulatory inconsistencies, especially concerning data privacy and compliance.

The study’s results underscore that while enterprises across finance, healthcare, supply chains, and government sectors report over 75% demand for interoperability, adoption of cross-chain solutions remains below 40%. Hybrid frameworks that balance privacy-preserving data management on private chains with verification and settlement on public blockchains emerge as the most promising approach.

By offering a consolidated framework for evaluating interoperability, this research contributes to both academic and industrial discourse. It further emphasizes the urgent need for standardization efforts, global regulatory harmonization, and open governance protocols. Ultimately, the findings demonstrate that achieving blockchain interoperability is not solely a technical pursuit but also an institutional, economic, and legal necessity for blockchain’s long-term viability and global adoption.

Downloads

Download data is not yet available.

References

https://dfzljdn9uc3pi.cloudfront.net/2021/cs-566/1/fig-2-2x.jpg

https://media.springernature.com/lw1200/springer-static/image/art%3A10.1186%2Fs42400-023-00163-y/MediaObjects/42400_2023_163_Fig10_HTML.png

• Buterin, V. (2018). Ethereum: A next-generation smart contract and decentralized application platform. Ethereum Foundation. https://ethereum.org

• Cachin, C., & Vukolić, M. (2017). Blockchain consensus protocols in the wild. arXiv preprint arXiv:1707.01873.

• Chen, L., Xu, L. D., Shah, N., Gao, Z., Lu, Y., & Shi, W. (2018). On security analysis of proof-of-elapsed-time (PoET). IEEE International Congress on Big Data, 151–158.

• Crosby, M., Pattanayak, P., Verma, S., & Kalyanaraman, V. (2016). Blockchain technology: Beyond bitcoin. Applied Innovation Review, 2, 6–19.

• Dinh, T. T. A., Wang, J., Chen, G., Liu, R., Ooi, B. C., & Tan, K. L. (2017). BLOCKBENCH: A framework for analyzing private blockchains. Proceedings of the 2017 ACM International Conference on Management of Data, 1085–1100.

• Saha, B. (2022). Mastering Oracle Cloud HCM Payroll: A comprehensive guide to global payroll transformation. International Journal of Research in Modern Engineering and Emerging Technology (IJRMEET), 10(7). https://www.ijrmeet.org

• Gai, K., Wu, Y., Zhu, L., Zhang, Y., & Xu, M. (2019). Permissioned blockchain and edge computing empowered privacy-preserving smart grid networks. IEEE Internet of Things Journal, 6(5), 7992–8004.

• Gartner. (2022). Blockchain and Web3 trends shaping enterprise adoption. Gartner Research.

• Hardjono, T., Lipton, A., & Pentland, A. (2019). Toward an interoperability architecture for blockchain autonomous systems. IEEE Transactions on Engineering Management, 67(4), 1298–1309.

• Mentoring and Developing High-Performing Engineering Teams: Strategies and Best Practices , International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 2, page no. pph900-h908, February-2025, Available at : http://www.jetir.org/papers/JETIR2502796.pdf

• Hyperledger Foundation. (2020). Hyperledger Fabric documentation. The Linux Foundation. https://www.hyperledger.org

• Interledger Foundation. (2021). The Interledger protocol: Open payments across blockchains. https://interledger.org

• Kannan, V., Jayaraman, R., & Prakash, A. (2020). Blockchain interoperability: Challenges and research opportunities. Journal of Systems and Software, 164, 110542.

• Kosba, A., Miller, A., Shi, E., Wen, Z., & Papamanthou, C. (2016). Hawk: The blockchain model of cryptography and privacy-preserving smart contracts. IEEE Symposium on Security and Privacy, 839–858.

• Lin, I. C., & Liao, T. C. (2017). A survey of blockchain security issues and challenges. International Journal of Network Security, 19(5), 653–659.

• Mougayar, W. (2016). The business blockchain: Promise, practice, and application of the next Internet technology. Wiley.

• Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system. https://bitcoin.org/bitcoin.pdf

• Park, J., & Park, J. H. (2019). Blockchain security in cloud computing: Use cases, challenges, and solutions. Symmetry, 11(2), 228.

• Polkadot Foundation. (2022). Polkadot: Enabling cross-chain interoperability. https://polkadot.network

• Sousa, J., Bessani, A., & Vukolić, M. (2018). A Byzantine fault-tolerant ordering service for the Hyperledger Fabric blockchain platform. Proceedings of the 48th IEEE/IFIP International Conference on Dependable Systems and Networks (DSN), 51–58.

• Szabo, N. (1997). Formalizing and securing relationships on public networks. First Monday, 2(9). https://doi.org/10.5210/fm.v2i9.548

• Zhang, P., Schmidt, D. C., White, J., & Lenz, G. (2018). Blockchain technology use cases in healthcare. Advances in Computers, 111, 1–41.

• Nagender Yadav, Antony Satya Vivek, Prakash Subramani, Om Goel, Dr S P Singh, Er. Aman Shrivastav. (2024). AI-Driven Enhancements in SAP SD Pricing for Real-Time Decision Making. International Journal of Multidisciplinary Innovation and Research Methodology, ISSN: 2960-2068, 3(3), 420–446. Retrieved from https://ijmirm.com/index.php/ijmirm/article/view/145

Published

04-04-2025

Issue

Section

Original Research Articles

How to Cite

Interoperability Issues Between Private and Public Blockchains. (2025). Scientific Journal of Artificial Intelligence and Blockchain Technologies, 2(2), Apr (33-41). https://doi.org/10.63345/sjaibt.v2.i2.104

Similar Articles

51-60 of 70

You may also start an advanced similarity search for this article.