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Hybrid Blockchain Technology – An Overview

Hybrid Blockchain Technology – An Overview

October 16, 2019

Hybrid blockchain technology, as the name suggests, is the amalgamation of the virtues of a private and public blockchain.

Public Blockchain

A public blockchain, the most commonly used blockchain, is a decentralized open blockchain where anyone can participate. Examples of these types of blockchain are the Ethereum and bitcoin. Anyone in the blockchain can read and send a transaction. Any updates to the data have to be approved by all the nodes in the network. This method builds trust in the system. Hence it is decentralized and distributed by nature. In this type of blockchain, anyone can join the blockchain network as long as they have a client. The transactions are secured through the cryptographic method. The public blockchain has its cons – scalability is limited, and TPS is low, and the cost is high. The public blockchain is completely transparent and offers incentives like mining. 

Private Blockchain

Enterprises primarily embrace a private blockchain. Its privately maintained database and to join the blockchain permission is needed — the owners’ control who joins the network. The request to join is validated through a consensus method defined in the blockchain. Hyper ledger from IBM is an example.

Hybrid Blockchain

There are some cons to each of these technologies. A public blockchain is open, slow, and expensive; however, they offer transparent and secure for the transaction to happen, and it is decentralized. A private blockchain can provide higher speeds but is not a correct decentralized method.  

Hybrid Blockchain was built to take advantage of the best of Private and Public Blockchain. It is made up of public and private blockchain. When we say private, it means that it’s a closed network. The users can join only based on invitation, and however, the hash generated in the system is verified in the public system, thus adopting the public blockchain feature. Hybrid blockchain lays the boundary on who can join the network at the same time offer transparency, security, and integrity of the transactions. The members of the hybrid blockchain can decide who is accepted into the system. Hybrid blockchain is suitable for a regulated market with the need to be decentralized. Examples would be enterprise, a government, where privacy is of crucial significance at the same time they need to ensure specific regulations are in place to comply with the laws. 

In a hybrid blockchain, the transaction can be made verifiable when needed. It can keep the transactions private, thus ensuring immutability. The members of the hybrid blockchain can decide which of the transaction should remain private and which should be made public. Even if the transaction is private, it cannot be changed or modified by individual members. The users can get invited to join the blockchain. Once part of the blockchain, they participate in the transactions. The identity of the users in the network is not revealed outside the system and thus preserves anonymity. 

There are a few hybrid blockchains that have been launched. XinFin is a Hybrid blockchain that uses Ethereum and Quorum blockchain solutions. DragonChain is another example of a Hybrid Blockchain. 

Benefits of Hybrid Blockchain

There are several benefits of a Hybrid Blockchain Technology. Hybrid blockchain maintains a closed private network. Hence it ensures the safety of the data and transactions. It also allows flexibility to invite more players into the blockchain. A hybrid blockchain is secure and helps to protect privacy. It also has low transaction fees.

Hybrid Blockchain use cases

There are several use cases where Hybrid Blockchain Technology has been a perfect match. 


Hybrid blockchain is an ideal solution to the banking sector, where they need to keep the information secure. 

Supply chain:

The supply chain is another industry to benefit from the hybrid blockchain. In the supply chain, different partners come together to form to help the product reach the end customer from the seller. Implementing a hybrid solution helps to maintain the privacy and accuracy of the network at the same time allows it to invite partners to the blockchain as needed.


The government system is another field where hybrid blockchain implementation will be valuable. The public part of the hybrid solution allows the common man to participate in programs at the same time, enable the government to maintain control over data as needed.


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