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hybrid blockchain

Everything You Need to Know About Hybrid Blockchains

In this blog, we’ll dig deeper into the concepts of hybrid blockchain and understand why its features and working mechanism make it the perfect bridge between private and public blockchains.

Blockchain technology is reshaping the world with its applications in money transfer, smart contracts, personal identity security, Internet of Things (IoT) and more. It makes it possible for businesses, governments, and other organizations to manage workflow more effectively and enhance existing systems with better solutions. 

To better the never-ending cycle of technological innovation, it is now altering how we store, access, and use data. It also affects other facets of technology, such as how networks are trusted. To understand blockchain technology clearly, we have to understand the types of blockchain. There are mainly three types:

  • Public blockchain
  • Hybrid Blockchain
  • Private and Consortium blockchain.

The hybrid blockchain is a mix of a private and a public blockchain.

In this blog, we’ll dig deeper into the concepts of hybrid blockchains and understand why their features and working mechanism make them the perfect bridge between private and public blockchains.

Hybrid Blockchain – The Best of Both Worlds

Hybrid blockchains allow for both regulated accessibility and autonomy. A hybrid blockchain can be defined as a special kind of blockchain technology that combines elements of both private and public blockchains or aims to use the best features of both types of blockchains.

In a hybrid blockchain, transactions and data are made private but may still be validated as necessary, such as by granting access via a smart contract. Although retained inside the network, private information may still be verified. 

But what about the safety of the hybrid blockchain? Although it is under the authority of a group of people, the security and immutability of the transactions cannot be altered. Only transactions that are made public and those that are not may be managed by them.

The hybrid blockchain architecture may be identified by the fact that it is not accessible to all users yet offers capabilities such as security, integrity, and transparency.

One of the initiatives that benefit from both public and private blockchain is XDC. A Singaporean business named XinFin developed and oversees it.

How does a Hybrid Blockchain Work?

A public blockchain helps with data verification between private blockchain ledgers. The working methodology of hybrid blockchains can be broken down into three steps:

  1. A hybrid blockchain ensures complete data protection. The nodes securely store data, and transactions are shielded from modifications by the general public.
  2. This sort of blockchain’s access to participants is more decentralized, which is another feature. A hybrid blockchain allows for decentralization when and where it is needed since public and private blockchains cater to it in very different ways. Simply put, a company using a hybrid blockchain can keep information private from the general public while still making it available for verification.
  3. A hybrid blockchain handles transactions more transparently than private blockchains. Hybrids function better in this regard since private blockchains do not allow access.

Features of Hybrid Blockchain

  • Closed Ecosystem: A hybrid blockchain permits communication with outside parties while maintaining anonymity. Because hybrid blockchain operates in a closed environment, it cannot be subjected to a 51 percent attack from outsiders.
  • Data Security: In comparison to private blockchains, hybrid blockchains allow slightly more scope and offer tighter data security procedures. Overall, the benefit of data security is quite important since it enables one to keep their transactions secure without worrying about whether someone else has access to them.
  • New Regulations: The good thing about hybrid blockchain is that new regulations must be implemented. However, the goal of the hybrid blockchain will determine the type of modification.
  • Transaction cost: Another advantage of hybrid blockchain is its low transaction cost. Given that just a small number of nodes are required to validate transactions, their cost is guaranteed to be cheaper.

Hybrid Blockchain Applications

For a deeper understanding, let’s now go through a few hybrid blockchain applications. The following are domains in which hybrid blockchains find the most use cases:


Hybrid blockchains are believed to provide advantages for e-commerce sites, like new income models or cost reductions, through the usage of peer-to-peer networks and distributed applications (dApps).

Hybrid IoT

The devices can be put on a private network with a hybrid blockchain, and only those who require them can access them. Depending on the data to be shared, certain network features might be made public. A number of security challenges may be resolved with a hybrid strategy.

Various Sectors 

Singapore-based XinFin FinTech Pte and Software tech firm, Ramco Systems are working together to build a hybrid blockchain solution for payments in logistics, aviation, and human resources industries. Ramco Systems will be leveraging XInFin’s proprietary XDC01 distributed ledger protocol and developping a solution for Ramco’s global enterprise clients. This means various sectors will benefit from hybrid blockchains. 

Global Finance and Trade

The hybrid blockchain may be used in finance as well. In their approach, XinFin employs a hybrid blockchain using Quorum for the private part and Ethereum for the public part. Their goal is to offer a hybrid technology-based platform for international commerce and finance. They employ DPOS (delegated Proof-of-Stake).

Is Hybrid Blockchain the Future?

In recent years, blockchain technology has made significant gains. Although hybrid blockchain technology may appear to be a thing of the now, it is undoubtedly a part of the future as it continues to develop. With many additional changes to the system, hybrid blockchains are quickly rising to the top of the list for all businesses and organizations using technology on a daily basis.

Hybrid Blockchain – FAQs

1) What are the 4 types of Blockchains?

The 4 types of blockchains are as follows:
  • Public Blockchain
  • Private Blockchain
  • Hybrid Blockchain
  • Consortium Blockchain
  • 2) Are hybrid blockchains private?

    Hybrid blockchains are a combination of public and private blockchains. They use the private blockchain feature and ensure that the data stays safe in its actual form. Data is safely stored in the nodes.

    3) Why is hybrid blockchain preferable compared to the other types of blockchain?

    The hybrid blockchain’s transparency aspect is substantially superior to some of the greatest private blockchains. Hybrid blockchain works better in this regard since users have less access than in private blockchain.