Types of Blockchain: public, private and hybrid

Types of Blockchain: public, private and hybrid

Blockchain technology is used in various sectors, from cryptocurrencies to intellectual property records. There are different types of blockchains, each with specific functionalities.

Know more

Public Blockchain

This guide presents the available types of blockchain, their applications, and objectives. It explains the difference between public, private, and hybrid blockchains, how transaction validation and data storage work in each network, and the advantages and disadvantages of each type.

Public Blockchain allows anyone to participate in the network without authorization, allowing them to create an account, make transactions, and mine blocks. This form of Blockchain is transparent, with public records that can be verified by anyone.

Transaction and Storage:

A transaction is transmitted through the network and verified by all nodes in the network, which are computers connected to the blockchain. These nodes verify if the transaction is valid by checking if the transaction and its digital signature are authentic.

A user creates a transaction, which is an encrypted message containing information such as the amount of cryptocurrency to be transferred and the recipient's address.

Once the transaction is validated, it is added to a block in the blockchain.

After the transaction is added to the block, it is considered confirmed and permanently recorded in the blockchain and cannot be altered or removed.


  • Decentralization: Anyone can participate in the network without restrictions.

  • Transparency: All transactions are visible to all network participants.

  • Security: Encryption and decentralization make the network practically immune to hacker attacks.

  • Immutability: Transactions on the network are permanent and cannot be modified.


  • Anonymity:As anyone can participate in the network, it is difficult to guarantee the identity of users.

  • Slowness: Network decentralization can make transactions slower and more costly.

  • Costs: The costs of maintaining the network are borne by the participants, which can be a barrier for some individuals or organizations.

  • Regulation: aThe lack of regulation can make the adoption of the technology more challenging.

Private Blockchain

Private blockchain, as the name suggests, is a closed network in which only authorized users can participate.

This type of blockchain is used by companies and organizations that require a high level of security and privacy in their transactions. Information is protected by encryption, and users are identified through digital certificates.

Transaction and Storage:

A private blockchain network operates similarly to a public one but with some important differences.

1) Transactions in a private blockchain are initiated by an authorized user who creates a transaction and sends it to the network nodes for validation.

2) Unlike a public network, transaction validation in a private network is typically faster and more efficient since the network is controlled by a specific group of users.

3) In a private blockchain, network governance and transaction validation rules are defined by the group of users participating in the network, rather than being determined by a public protocol as is the case with a public blockchain.


  • Control: The network is controlled by an organization or group of organizations, allowing for greater flexibility in setting rules and processes.

  • Speed: The network can be faster than the public one since it does not need to process transactions from unknown users.

  • Privacy: The network can be configured to ensure data privacy.


  • Cost: Creating and maintaining a private network can be costly.

  • Limitation: The network is limited to participants who have been invited to join.

Hybrid Blockchain

A hybrid blockchain is a combination of the two types of blockchains mentioned above. It combines the transparency and security of a public blockchain with the privacy and efficiency of a private blockchain.

This type of blockchain is ideal for companies that need transparency in some operations and privacy in others. Moreover, it allows different private networks to communicate with each other, creating a larger and more secure blockchain network.

Transaction and Storage:

In a hybrid blockchain, public transactions are recorded on the public blockchain, while private transactions are recorded on the private blockchain.

This allows organizations to share confidential data privately while maintaining the transparency and immutability of the public blockchain.


  • Flexibility: The network can be configured to meet the specific needs of an organization.

  • Security: The combination of public and private network features can make the network more secure.

  • Efficiency: The network can be more efficient than the public or private one alone.


  • Complexity: Combining public and private network features can make the network more complex to manage.

  • Costs: The costs of creating and maintaining a hybrid network can be significant.


Each type of blockchain has its own advantages and disadvantages, and the choice of which type to use depends on the specific needs of each organization. Companies that require transparency and security may opt for a public blockchain, while organizations that need privacy and control may choose a private blockchain. Companies that need both features can choose a hybrid blockchain. It is important to keep in mind that blockchain technology is a powerful tool that can be used to improve the efficiency and security of many business processes.

By Sonica W3 Learning Center

Learn other content about Blockchain


Launch Builder