Hybrid Blockchain

Last updated 24 days ago

The 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.

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

As usual, Hybrid blockchain is entirely customizable. The members of the hybrid blockchain can decide who can take participation 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.

BENEFITS:

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

    is its ability to work in a closed ecosystem. That means that companies or

    organizations don’t have to worry about getting their information leaked when

    taking advantage of blockchain technology.

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

    about hybrid blockchain is that they need to change rules. However, the nature of the

    change depends on what the hybrid blockchain is trying to do. However, don’t

    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 cannot have access to the network to carry out the attack.

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

    though private blockchain is best for privacy-related issues. However, they are

    limited when it comes to communicating with the outer world. Many companies may

    want to keep privacy, but also need to configure their blockchain so that they

    can communicate with all their shareholders including the public.

  5. Low transaction cost: Another added benefit of using hybrid blockchain is to

    have a low transaction cost. Transactions are bound to be cheap as it requires

    few nodes to verify them. The most powerful nodes in the network make it easy to

    verify the transaction which may take thousands of nodes in public blockchain.

    The transaction fees can reduce to even 0.01$ per transaction.