Types of Blockchains: Public, Private, and Hybrid Variants


Blockchains, the underlying technology of cryptocurrencies like Bitcoin and Ethereum, have evolved significantly since their inception. They can be categorized into various types based on their structure, purpose, and governance. This exploration delves into the different types of blockchains, outlining their features, use cases, advantages, and disadvantages.

Types of blockchains

1. Public Blockchains
Definition and Characteristics
Public blockchains are decentralized networks accessible to anyone. They operate on a consensus mechanism, where all participants validate transactions and maintain the ledger.

Bitcoin: The first and most well-known public blockchain, primarily used for peer-to-peer digital currency transactions.

Transparency: All transactions are visible to everyone, enhancing trust and accountability.
Security: Decentralization and consensus mechanisms like Proof of Work (PoW) make it difficult for malicious actors to alter the     blockchain.
Censorship Resistance: No single entity controls the network, making it resilient to censorship.

Scalability Issues: Public blockchain often face challenges with transaction speed and throughput.
High Energy Consumption: Especially in PoW systems, significant computational power is required.

2. Private Blockchains
Definition and Characteristics
Private blockchain are restricted networks where access is limited to specific participants. They are often used by organizations for internal purposes.


Hyperledger Fabric: A blockchain framework for developing applications and solutions with a modular architecture.
R3 Corda: Designed for businesses to transact directly and in strict privacy using smart contracts.
Types of Blockchains
Types of Blockchains

Controlled Environment: Greater control over participants and permissions.
Improved Performance: Faster transaction speeds due to fewer participants and simplified consensus mechanisms.
Privacy: The network can keep sensitive information confidential.

Centralization Risks: Potential for reduced trust due to centralization.
Limited Transparency: Not all transactions are publicly visible, which might reduce accountability.

3. Consortium Blockchains
Definition and Characteristics
A group of organizations governs consortium blockchain, also known as federated blockchain, making them semi-decentralized rather than being controlled by a single entity.
Types of Blockchains
Types of Blockchains
Quorum: An enterprise-focused version of Ethereum developed by JPMorgan.
Energy Web Foundation: Aimed at accelerating the transition to a decentralized, democratized energy system.

Collaboration: Additionally, it encourages cooperation between organizations, thereby leading to more robust solutions.
Efficiency: Improved performance over public blockchain due to limited participant nodes.
Security and Privacy: Balanced approach, offering more privacy than public blockchain while maintaining some transparency.

Complex Governance: Managing a consortium can be challenging due to differing interests of member organizations.
Partial Decentralization: While more decentralized than private blockchains, they do not achieve the full decentralization of public blockchains.

4. Hybrid Blockchains
Definition and Characteristics
Hybrid blockchains combine elements of both public and private blockchains, aiming to leverage the strengths of each.

Dragonchain: Originally developed by Disney, it allows businesses to use a private blockchain with selective data exposure to a   public blockchain. Consequently, this enables greater flexibility and control over data transparency.
XinFin: Specifically aimed at global trade and finance, it combines public and private blockchain elements.

Flexibility: Additionally, organizations can choose which data to keep private and which to share publicly.
Enhanced Security: Organizations can keep private transactions confidential, while anyone can verify public transactions.
Scalability: Organizations can implement better scalability solutions compared to purely public blockchain.

Complexity: However, implementing and managing hybrid blockchain can be technically challenging.
Trust Issues: Moreover, users may have concerns about the selective transparency and potential for manipulation.

5. Permissioned Blockchain:

Permissioned blockchain require authorization before accessing and participating in the network. They offer greater control over governance, security, and compliance compared to public blockchain.

6. Sidechain:

Sidechains are independent blockchain networks that are interconnected with a primary blockchain, referred to as the mainchain.
They enable the execution of specific tasks or smart contracts without congesting the mainchain.
Examples include RSK and Loom Network.

7. Federated Blockchain:

Federated blockchains are a group of interconnected blockchains governed by a consortium or federation of organizations.
They offer scalability, privacy, and control, making them suitable for enterprise use cases.
Examples include IBM Blockchain Platform and MultiChain.

8. Permissionless Blockchain:

Permissionless blockchains allow anyone to join the network, participate in transaction validation, and create smart contracts.
They are fully decentralized and censorship-resistant.
Examples include Bitcoin and Ethereum.

9. Proof of Work (PoW) Blockchain:

In PoW blockchains, nodes, referred to as miners, rely on computational puzzles to validate and confirm transactions. Miners compete to solve these puzzles, and the first one to do so adds a new block to the blockchain. Bitcoin is the most famous example of a PoW blockchain

10. Proof of Stake (PoS) Blockchain:

In PoS blockchains, validators are chosen to create new blocks based on the amount of cryptocurrency they hold and are willing to “stake” as collateral. PoS is seen as more energy-efficient compared to PoW, as it doesn’t require extensive computational power. Ethereum is in the process of transitioning to a PoS consensus mechanism.

11. Delegated Proof of Stake (DPoS) Blockchain:

In DPoS blockchains, token holders rely on a democratic voting system, where they vote for a select number of delegates to validate transactions and create new blocks.. This model aims to improve scalability and transaction throughput. EOS and TRON are examples of DPoS blockchains.

12. Proof of Authority (PoA) Blockchain:

PoA blockchains rely on a set of approved validators or authorities to create new blocks and validate transactions. Typically, known entities or organizations serve as validators in PoA blockchain, making them suitable for use cases where trust and reliability are essential, such as enterprise applications and consortium networks

13. Multi-Chain Blockchain:

Multi-chain blockchain are designed to support multiple parallel blockchains within a single network. They achieve greater flexibility and scalability by allowing each chain to have its own set of rules, consensus mechanisms, and governance structures. Polkadot serves as an example of a multi-chain blockchain platform.

14. Interoperable Blockchain:

Projects like Cosmos and Polkadot focus on interoperability solutions, enabling seamless communication and data transfer between different blockchain networks to overcome the fragmentation and lack of compatibility that exist among various blockchain platforms. They facilitate the exchange of assets and information across disparate systems.

15. Smart Contract Blockchain:

“Smart contract blockchain support programmable, self-executing contracts that automatically enforce the terms and conditions of an agreement.” Ethereum is the most well-known smart contract platform, but other blockchains, such as Binance Smart Chain and Cardano, also support smart contract functionality.

16. Scalable Blockchain:

These different types of blockchains cater to diverse use cases and application scenarios, ranging from decentralized finance (DeFi) and supply chain management to identity verification and digital asset tokenization. Moreover, each type shapes the landscape of blockchain technology and its applications in various industries, offering unique features and capabilities.Moreover, scalable blockchain are capable of handling a large number of transactions per second (TPS) while maintaining low latency and high throughput. Developers are working on various scaling solutions, such as sharding, state channels, and layer 2 protocols, to address the scalability limitations of existing blockchain networks like Ethereum and Bitcoin.


Furthermore, the diversity of blockchain types – public, private, consortium, and hybrid – clearly demonstrates the technology’s adaptability to different needs and contexts. Notably, each type offers unique advantages and faces specific challenges, consequently making the choice of blockchains dependent on the intended application and requirements. Therefore, understanding these distinctions is crucial for businesses and developers aiming to leverage blockchain technology effectively.

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