Types of Blockchain Technology: Pathway to Learn Blockchain

Types of Blockchain technology, when Blockchain has revolutionized various industries by introducing decentralized and secure systems for transactional processes. Understanding the different types of blockchain technology is essential for grasping the diverse applications and functionalities it offers. In this article, we’ll delve into the intricacies of various blockchain types, including public, private, consortium, and hybrid blockchains, exploring their characteristics, use cases, advantages, and disadvantages.

Introduction to Blockchain Technology

What is Blockchain?

Blockchain is a distributed ledger technology that enables the secure recording of transactions across multiple nodes in a decentralized manner. Each block in the blockchain contains a cryptographic hash of the previous block, creating a chain of blocks that ensures data integrity and immutability.

Importance of Blockchain Technology

Blockchain technology eliminates the need for intermediaries in transactions, enhances transparency, security, and trust, and offers greater efficiency and cost-effectiveness in various processes, ranging from financial transactions to supply chain management.

Types of Blockchain Technology

Public Blockchain

A public blockchain is a decentralized network where anyone can participate, view, and validate transactions. It offers complete transparency and immutability, making it suitable for applications requiring high levels of openness and trustlessness.

Definition and Characteristics

Public blockchains are permissionless, allowing anyone to join the network, participate in transaction validation (mining), and access the ledger. Transactions are transparent and irreversible once added to the blockchain, ensuring data integrity.

Examples of Public Blockchains

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

Ethereum: It is one of the decentralized platforms that enable the production(creation) of smart contracts and all D-Apps (decentralized applications) by using its corresponding native cryptocurrency, Ether.

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Advantages and Disadvantages

Following are some advantages and disadvantages of types of blockchain technology:


  • High level of transparency and decentralization
  • Resilience to censorship and tampering
  • Open participation for anyone with internet access


  • Scalability challenges due to consensus mechanisms like Proof of Work (PoW)
  • Energy-intensive mining process
  • Limited privacy for transaction participants

Private Blockchain

Private blockchain, (one of types of blockchain technology) also known as permission blockchain, restricts access and participation to authorized entities only. It offers greater control over the network and is commonly used by enterprises for internal processes and confidential transactions.

Definition and Characteristics

Private blockchains require permission to join and interact with the network, typically managed by a central authority or consortium. Participants are known and trusted, ensuring confidentiality and regulatory compliance.

Examples of Private Blockchains

Hyperledger Fabric: An enterprise-grade permissioned blockchain framework hosted by the Linux Foundation, offering modular architecture and scalability for business applications.

Quorum: A permissioned blockchain platform developed by JPMorgan Chase for enterprise use cases, focusing on privacy, performance, and interoperability.

Advantages and Disadvantages


  • Enhanced privacy and data confidentiality
  • Efficient transaction processing and scalability
  • Regulatory compliance and governance control


  • Centralization of control and potential single points of failure
  • Limited transparency compared to public blockchains
  • Dependency on trust in the governing authority

Consortium Blockchain

Consortium blockchain (one of types of blockchain technology) combines elements of both public and private blockchains, allowing a select group of participants to maintain the network while retaining decentralized control. It is commonly used in industries where collaboration among multiple organizations is required.

Definition and Characteristics

Consortium blockchains are semi-decentralized networks managed by a group of pre-selected nodes, often representing multiple organizations or entities. It offers shared governance, improved scalability, and increased efficiency compared to public blockchains.

Examples of Consortium Blockchains

R3 Corda: A distributed ledger platform designed for financial institutions and regulated industries, facilitating secure and confidential transactions between trusted parties.

B3i: A blockchain consortium of insurance companies developing distributed ledger solutions for the reinsurance industry, aiming to streamline processes and reduce administrative costs.

Advantages and Disadvantages


  • Enhanced privacy and permissioned access
  • Increased scalability and transaction throughput
  • Collaboration and shared governance among trusted participants


  • Complexity in establishing and managing consortium governance
  • Potential conflicts of interest among consortium members
  • Limited decentralization compared to public blockchains

Hybrid Blockchain

Hybrid blockchain (one of types of blockchain technology) combines the features of public and private blockchains, offering flexibility, scalability, and interoperability for diverse use cases. It allows organizations to leverage the benefits of both permissionless and permissioned networks based on their specific requirements.

Definition and Characteristics

Hybrid blockchains enable the interoperability between public and private networks, allowing data and assets to be shared securely across different domains. They offer customizable levels of transparency, privacy, and control, catering to various business needs.

Examples of Hybrid Blockchains

Dragonchain: A hybrid blockchain platform offering blockchain as a service (BaaS) solutions for enterprises, enabling the integration of public and private blockchain capabilities.

Komodo: A blockchain platform specializing in atomic swaps and cross-chain interoperability, facilitating seamless transactions between different blockchain networks.

Advantages and Disadvantages


  • Flexibility and customization options for diverse applications
  • Enhanced security and privacy controls
  • Interoperability between public and private networks


  • Complexity in managing hybrid infrastructure
  • Potential regulatory challenges and compliance issues
  • Dependency on centralized components for integration

Use Cases of Different Blockchain Types

Blockchain technology has a wide range of applications across various industries, leveraging different types of blockchains based on specific requirements and use cases.

Public Blockchain Use Cases

  • Cryptocurrencies and digital assets
  • Decentralized finance (DeFi) platforms
  • Tokenization of assets (NFTs, security tokens)
  • Decentralized autonomous organizations (DAOs)

Private Blockchain Use Cases

  • Supply chain management and logistics
  • Identity verification and authentication
  • Interbank settlement and cross-border payments
  • Healthcare data management and patient records

Consortium Blockchain Use Cases

  • Trade finance and letter of credit (LoC) processes
  • Insurance claims processing and fraud detection
  • Real estate transactions and property registry
  • Supply chain traceability and provenance tracking

Hybrid Blockchain Use Cases

  • Cross-border trade and customs clearance
  • Intellectual property rights management
  • Secure voting systems and election processes
  • Interoperable supply chain networks


In conclusion, understanding the different types of blockchain technology is crucial for unlocking the full potential of decentralized systems in various industries. Whether it’s the transparency of public blockchains, the privacy of private blockchains, the collaboration of consortium blockchains, or the flexibility of hybrid blockchains, each type offers unique advantages and use cases. By harnessing the power of blockchain technology, organizations can revolutionize their operations, enhance trust, and drive innovation in the digital economy.

FAQs (Frequently Asked Questions)

Public and private blockchains are two types of blockchains. What’s their main difference?

Public blockchains are permissionless and decentralized, allowing anyone to participate, while private blockchains restrict access to authorized entities only, offering greater control and privacy.

How does a hybrid blockchain differ from other types of blockchains?

Hybrid blockchains combine elements of both public and private blockchains, offering flexibility, scalability, and interoperability for diverse applications, catering to specific business requirements.

What are some real-world use cases of consortium blockchains?

Consortium blockchains are commonly used in industries such as finance, insurance, and supply chain management for processes requiring collaboration among multiple organizations, such as trade finance, insurance claims processing, and supply chain traceability.

What challenges do organizations face when implementing blockchain technology?

Organizations may encounter challenges related to scalability, regulatory compliance, interoperability, and governance when implementing blockchain solutions, requiring careful planning and strategic considerations.

How can businesses determine the most suitable type of blockchain for their needs?

Businesses should assess their specific requirements, such as data privacy, scalability, governance, and interoperability, to determine the most suitable type of blockchain technology for their use cases, considering factors like security, transparency, and control.

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