Blockchain determines whether encryption is necessary or not in the issue of compensation. In cryptocurrency, unlike private blockchain, public blockchains such as Bitcoin need an incentive to participate in the network because anyone can participate. Therefore they issued the cryptocurrency. And users receive cryptocurrency as compensation for participation in network.
But, different from the public one, private blockchain does not need compensation. Because the nodes who are participating in the network must each have its own specific purpose. They voluntarily participate in the network and play their role as nodes.
How cryptocurrency is not significant in private blockchain
As the participators got their own purposes in joining, the rewards for their participation are no longer necessary. And it makes the cryptocurrency is not necessary as well for a private blockchain node.
Almost all projects that issue cryptocurrency are oriented toward public blockchain. This does not preclude private blockchain.
However, the private blockchain also came from the division of the blockchain. That puts it further away from being a blockchain in its true meaning. It would be better to describe it as a blockchain for technology.
It calls for anyone without a broker to access information, record and operate it in a transparent manner. Therefore, voluntary participation is important and compensation is essential. This is why cryptocurrency and blockchain cannot be separated.
A good example of this is the recently issued DID consortium in South Korea. The country is planning on making a DID consortium, which is basically a blockchain ID.
The government and other 11 institutions in the country are joining the project. Together, they will decentralize personal information that makes it easier for the people to access education, paying tax and getting insurances privately.
For this, no cryptocurrencies exchanged between the participators in the project. Each has its sole purpose of joining the project, bringing in their own services for it.