Hybrid Blockchain

A hybrid blockchain is best defined as the blockchain that attempts to use the best part of both private and public blockchain solutions. In an ideal world, a hybrid blockchain will mean controlled access and freedom at the same time.

A hybrid blockchain is distinguishable from the fact that they are not open to everyone, but still offers beneficial features of a public blockchain such as integrity, transparency, and security.

A hybrid blockchain is entirely customizable. The members of a hybrid blockchain can decide who can participate in the blockchain or which transactions are made public. This brings the best of both worlds and ensures that a company can work with their stakeholders in the best possible way.


  1. Works in a closed ecosystem: The number one advantage of a hybrid blockchain

    is its ability to function in a closed ecosystem. This means that companies or

    organizations do not have to worry about leakage of information when

    taking advantage of blockchain technology.

  2. Changes the rules when needed: Companies thrive on change. The good news

    about a hybrid blockchain is that rule changes can be facilitated. However, the nature of the

    change depends on what the hybrid blockchain is trying to do. However, do not

    expect to change data or modify transactions in a hybrid system that handles

    land registry or user identity for verification purposes.

  3. Protecting from 51% attack: Hybrid blockchain are immune to a 51% attack as

    hackers do not have access to the network to carry out the attack.

  4. Protecting privacy while still communicating with the outer world: Even

    though a private blockchain is best for privacy, the ability to communicate with the outer world is limited.

    Many companies may want to keep its privacy, but may also have the need to configure their blockchain so that they

    can communicate with the public including all their shareholders.

  5. Low transaction cost: Another added benefit of using a hybrid blockchain is the lower transaction cost.

    Transactions are bound to be cheap as it requires fewer nodes to verify them. The most powerful nodes

    in the network make it easy to verify a transaction which may take thousands of nodes in a public blockchain.

    The transaction fees can be reduced to as much as 0.01$ per transaction.

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