4 Types of Blockchain: Public, Private, Consortium, Hybrid


Blockchain technology has been very influential over the past decade in transforming numerous industries. Despite being initially developed to support cryptocurrencies like Bitcoin, blockchain has shown to be more than just a means of exchange. 

Its decentralized and transparent structure has drawn interest from various sectors, encouraging the exploration of new uses and opportunities. 

What is Blockchain?

Blockchain is a distributed and decentralized digital ledger system that enables several users to manage a single database of records or transactions. A blockchain is simply a chain of blocks, each comprising a set of transactions or information. A chain is created by connecting these units in chronological order.

Participants in blockchain networks connected to each other.

Fundamentals of Blockchain

Distribution: Users in a blockchain may be physically separated from one another but are linked through a network. Every user running a full node has an up-to-date copy of a ledger which is updated when new transactions are made.

Decentralization: Due to the decentralized nature of blockchain, the database is not managed by a single authority or intermediary. Instead, it is monitored by a worldwide network of computers called nodes.

Encryption: Blockchain technology, such as public and private keys, is used to safely and semi-anonymously record information in blocks, with participants using pseudonyms. Users may manage their identity and other personal data and only provide what is required in a transaction.

Immutability: Once added to the chain, a block cannot be changed or deleted, making the data stored on the blockchain tamper-resistant and safe. This is done by cryptographic hashing techniques that maintain data confidentiality. 

Tokenization: In a blockchain, transactions and other activities include the secure transfer of value. The value is represented by tokens, which can be anything, including financial assets and data. Participants can control their personal data via tokens.

5 fundamental features of blockchain illustrated by a graph

Advantages of Blockchain

Increased transparency: Transactions on a blockchain are accessible to all users, which makes it easier to trace, verify, and guarantee the accuracy of transactions. It lowers the risk of fraud while increasing trust among participants and the system.

No need for intermediaries: The distributed network of nodes verify the transactions through a process known as mining in blockchain technology. So, there is no need for third parties or intermediaries to make transactions. By doing so, it reduces transaction time and fees.

Immunity to technical failures: Information about the blockchain is kept by different users over a distributed set of nodes, which makes the network incredibly immune to technical failures. All network nodes can save a copy of the database. It means that even if one node shuts down, the security and presence of the network will not be disturbed.

Creation of blockchain from data

Types of Blockchain

Technological advancements in many industries have led to the adoption of blockchain technology. There are different kinds of blockchains because diverse use cases and criteria necessitate various traits and functions. 

There are 4 types of blockchain widely used nowadays: public blockchain, private blockchain, consortium blockchain, and hybrid blockchain.

Public Blockchain

As the name suggests, public blockchain is open to everyone. It is not restricted, and everyone can sign up to become an authorized node on a platform based on blockchain technology. Users can access records and carry out mining activities, which require complex calculations for verification and adding transactions to the ledger. 

The picture of Bitcoin in a coin format

Advantages of Public Blockchain

You may ask now, why would someone be a part of a public blockchain? There are several advantages to it. Public blockchains are highly transparent, fully decentralized, and independent. 

Each transaction tracked on the blockchain is transparent and accountable to all users. Decentralized systems increase trustworthiness by eliminating the need for third parties and decreasing the possibility of fraud or failure.

A computer and papers dedicated to following developments in cryptocurrencies

Areas of Use

Public blockchains are most commonly used for mining cryptocurrencies, such as Bitcoin. Additionally, because of their transparency and openness, this type of blockchain can be ideal for non-governmental organizations and social support groups.

Private Blockchain

Private blockchain is a blockchain network that operates on a smaller case in a limited setting, controlled by one party. Rather than allowing anybody to join, private blockchains are often run on a small network within a company or institution. 

Participants need permission from the network's administering authority to join the network. Private blockchain examples include Hyperledger, Ripple, Quorum, and many others.

Advantages of Private Blockchain,

One of the most well-known advantages of private blockchains is faster and more efficient because of limited access. These blockchains can prevent third parties from accessing information, too, as they can determine which nodes can view or edit data in the network.

A lock representing security of blockchain

Areas of Use

Private blockchain development is usually seen in private companies in competitive environments. Corporations can use blockchain technology while maintaining their competitive advantage over other organizations. Private blockchains can also be used effectively in supply chain management.

Public vs. Private Blockchain

Public and private blockchains differ in certain aspects, such as decentralization, access, transaction costs, and speed. A public blockchain allows users to enjoy real decentralization because everyone has a copy of the database. 

There are no limits on access or participation. A private blockchain, unlike public blockchain networks, is just partially decentralized. Only authorized members may use the network here. 

Due to the number of nodes, public blockchain platforms have higher transaction costs and time than private blockchain networks. 

Consortium Blockchain

Consortium blockchain, also known as federated blockchain, is a private blockchain with restricted access to a specific group of people who operate together on a decentralized network. 

It reduces the dangers of a single organization managing the private blockchain network. Preset nodes administer the consensus mechanisms in a consortium blockchain. A validator node starts and verifies transactions on the web.

Advantages of Consortium Blockchain

An advantage of consortium blockchains is that they allow only selected participants to access the network yet keep the decentralized environment. They tend to have more scalability and efficiency. In that regard, we can say that consortium blockchains are pretty democratic in nature!

Illustration of blockchain development on computer

Areas of Use

Consortium blockchains are often used in banking and payments. For example, banks can come together and form a consortium to decide which nodes can verify transactions in the network. 

This type of blockchain can also be used by research organizations, where a group of individuals would be assigned to identify the reliability and authenticity of the information.

Hybrid Blockchain

A hybrid blockchain combines the features of public and private blockchains. The best way to explain it is to imagine a public blockchain hosting a private network. This implies that participation is limited and regulated by the private blockchain itself. 

Transactions and information in these blockchains are not made public but can be validated, when necessary, by granting access via a smart contract. Walmart uses a famous example of a hybrid blockchain.

Hybrid blockchain adopting features of both private and public blockchain

Advantages of Hybrid Blockchain

Some companies and organizations would like to enjoy the best of both worlds and luckily, hybrid blockchains get the task done. It has the best qualities of public and private blockchains combined in itself. 

Not only this but also these blockchains are immune to 51% attack on the network because of their closed ecosystem.

Blockchain network presented with two people in the background

Areas of Use

Hybrid blockchains are widely used in different industries. Hybrid IoT is one such case where adopting a hybrid blockchain can lead to a more secure environment in the Internet of Things. 

Moreover, governments can use this type of blockchain to store information about their citizens while safely sharing it among institutions. It can also be adopted in global trade and finance as well.

Consortium vs. Hybrid Blockchain

Despite consortium and hybrid blockchain seeming similar, they have noteworthy differences. They can be compared in terms of access and decentralization. While consortium blockchains allow only selected participants to have full access, hybrid blockchains can be public in some cases and be restricted in other cases, combining the features of public and private blockchains. 

By this, we can see that consortium blockchains are more decentralized than hybrid blockchains, which are commonly partially decentralized.

What are Blockchain Solutions?

Blockchain solutions are applications or systems that use blockchain technology to solve problems or meet specific industry needs. These solutions use blockchain's unique qualities, such as decentralization, transparency, security, and immutability, to bring innovative ways to traditional challenges. 

Parea Labs is one company that provides blockchain solutions and brings innovative efficiency to problem-solving mechanisms.

Advantages of Blockchain Solutions

Blockchain solutions improve security, transparency, and trust through decentralized consensus and cryptographic approaches. They increase efficiency and lower costs by removing intermediaries and simplifying procedures. With its immutability and consensus procedures, blockchain protects data integrity and reliability. 

Blockchain solutions, with their worldwide accessibility and interoperability, can foster businesses, stimulate collaboration, and transform conventional operations through enhanced security, productivity, and integrity.

Application of Blockchain Solutions

Blockchain solutions are adopted across various industries. The most popular usage of blockchain solutions is in the finance and banking sectors. It enables secure, transparent, fast transactions, reducing costs and application time. 

Moreover, blockchains can revolutionize healthcare systems across the world. It can secure patient data sharing across different providers while maintaining privacy. 

Lastly, blockchain's immutable ledger can protect intellectual property rights by time-stamping and verifying ownership and authenticity of creative works, reducing plagiarism and copyright infringements.


  • Blockchain is a distributed and decentralized digital ledger system that enables several users to manage a single database of records or transactions.
  • The fundamental features of blockchains are distribution, decentralization, encryption, immutability, and tokenization.
  • Blockchains' most popular advantages are increased transparency in transactions, the absence of intermediaries, and immunity to single-point technical failures.
  • A public blockchain is an open, non-restricted environment where everyone with an internet connection can sign up to become an authorized node on a platform based on blockchain technology.
  • A private blockchain is a blockchain network that operates on a minor case in a limited setting, controlled by one party, which requires access from the managing authority to join.
  • A consortium (federated) blockchain is a private blockchain with restricted access to a specific group of people who operate together on a decentralized network.
  • Transactions and information in a hybrid blockchain tend not to be made public but can be validated when necessary by granting access via a smart contract.
  • Blockchain solutions use blockchain technology to solve specific problems or meet industry needs. These sectors include finance and banking, healthcare, and intellectual property management.
  • Blockchain solutions improve security, transparency, and trust through decentralized consensus and cryptographic approaches.

4 Types of Blockchain: Public, Private, Consortium, Hybrid


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