In the past two articles, we got to know about public and private blockchain technology. In this guide, we are going to see the below points:
- What is a hybrid blockchain?
- Its advantages and disadvantages
- Its use cases.
One can find similarities between hybrid and consortium blockchain, but let me tell you they differ in many ways.
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Definition: A hybrid blockchain is a type of blockchain which is a combination of a private and public blockchain. An organization that neither wants to implement a private blockchain nor a public blockchain But wants to take plus points from both can definitely prefer a hybrid one. The hybrid blockchain is best defined as the blockchain that attempts to use the best part of both private and public blockchain solutions.
In a supreme world, a hybrid blockchain will provide you with restricted access and freedom at the same time. Sounds like irony, right? Anyways, you will get to know more as you read about the architecture part.
Architecture: The hybrid blockchain architecture offers blockchain features such as integrity, transparency, and security. Architecture is designed in such a way that the associates have the authority to decide who can join the blockchain or which transactions are to be made public. This is what brings the best of both worlds which actually helps to assure that a company can work with its stakeholders in the best possible way.
Example of Hybrid Blockchain: Dragonchain, XinFin’s Hybrid blockchain
Now after the definition and architecture discussion, you must be curious about the advantages and disadvantages? Let’s understand them one by one.
What Are the Advantages?
- Works in a closed or bounded environment without the need to make everything public.
- Rules can be modified according to the requirements.
- Hybrid networks have the ability to defend against almost 51% of attacks.
- It offers privacy while still connected with a public network.
- It offers better flexibility than the public network.
What Are the Disadvantages?
- Not completely transparent.
- Enhancing the hybrid blockchain can be challenging.
- There is no impulse for participating and contributing to the network.
What Are the Use Cases?
Some of the best use-cases of the Hybrid blockchain are as follows:
- Real estate: Real-estate companies can use it to establish their systems and use the public to show information to the public.
- Retail: Retail can also use the hybrid network to make their processes smooth.
- Highly regulated markets: Hybrid blockchains are perfect for highly regulated markets such as financial markets.