All You Need to Know About Hybrid Blockchain in 2023

Blockchain has gone far beyond cryptocurrencies and evolved into a platform that has the capability to support a wide range of applications in various industries. From providing a safer and decentralized environment for data storage to improving the functioning of transaction processing, such abilities have made the technology popular for businesses. 

One of the major advancements in the Blockchain world is the hybrid Blockchain which is an amalgamation of both public and private Blockchains, creating a platform that is highly scalable and secure. The blog has covered the hybrid Blockchain in-depth and why it is becoming popular in the crypto world. 

Before we dive into what hybrid Blockchain development is, it’s imperative to understand the differences between public and private Blockchains.

Public vs. Private Blockchain

Public Blockchains are decentralized Blockchain networks that are open to everyone. It allows anyone to join and participate in the network and create an address and send transactions on the network without needing permission. Bitcoin and Ethereum are examples of public Blockchains that are entirely transparent. Anyone can view transactions and data stored on the Blockchain network. 

On the other hand, private Blockchains are permissioned networks that restrict participation and access to only authorized users. Private Blockchains are used in industries, such as healthcare, finance, and government, where privacy and confidentiality are the major concerns. 

What is a Hybrid Blockchain?

A hybrid Blockchain holds the properties of both worlds, public and private Blockchains. The public Blockchain in hybrid Blockchain acts as a primary ledger, whereas the private Blockchain acts as a secondary ledger. 

The primary ledger is transparent and allows anyone to participate in the network. Besides, auditing and verifying the transactions stored on this public ledger is also convenient. However, the secondary Blockchain is permissioned that allows only authorized users to view and access the data stored on Blockchain, which makes it ideal for industries such as finance, healthcare, and government. 

Hybrid Blockchains enable businesses to build their own permissions-based networks that are at the same time publicly accessible. One can enjoy full access to the network, however, the identity of the individual will be secure unless they engage in a transaction with other users. The hybrid Blockchain structure is customizable. Members of this network can decide which transactions need to be made public and who is authorized to access the Blockchain network. 

Overview of How a Hybrid Blockchain Works

Here’s a simplified overview of the working of hybrid Blockchain-

• Public Blockchains are ideal to record transactions that don’t require a high level of privacy or security. Transactions in the network are visible to all participants and they validate and confirm the transactions through a consensus algorithm. 
• Private Blockchain is ideal to store information that needs to be secured and private, such as personal information, financial data, or sensitive business transactions. The private Blockchain is only accessible to authorized parties and uses a different consensus algorithm to validate and confirm the transactions. 

• The private Blockchain is connected to the public Blockchain through a bridge that enables interoperability between the two Blockchains. The bridge allows data to be securely transferred between the two Blockchains while maintaining the integrity and security of the private Blockchain.

• Participants in the hybrid Blockchain can choose to use either the public or private Blockchain, depending on their needs. For example, a public Blockchain may be used for general transactions, while a private Blockchain is used for more sensitive transactions or data.

Advantages of Hybrid Blockchain

The following are advantages of the hybrid Blockchain development shedding light on how it’s different from other Blockchain types. 

• Closed Ecosystem: One of the best features of a hybrid Blockchain is that it maintains the user’s anonymity for the people in the same network. No one in the network except participants will know that this is an anonymous user. 
• Data Security: Ensuring the transactions are secure and unable to be accessed by unauthorized users is important. Hybrid Blockchain offers more data security as compared to public Blockchain. The permissioned and restricted network provides protection against 51 percent attacks. 
• Interoperability: Hybrid Blockchains encourage easy communication with other Blockchain networks, which eases the exchange of data and assets across different platforms.
• High-speed Operations: The hybrid Blockchain is simpler to manage and operate faster as compared to the public Blockchain and private Blockchains. 
• Customizable: A hybrid Blockchain can be customized as per specific business requirements. It can be designed to meet the specific needs of a particular industry or use case.
• Permissioned and Permissionless Access: A hybrid Blockchain incorporates the best of both private and public Blockchains. In a permissioned Blockchain, access is restricted to authorized parties, whereas in a permissionless Blockchain, anyone can participate in the network.
• Lower Transaction Costs: Hybrid Blockchain offers the benefits of public Blockchain with providing more control over the data. This reduces the cost of running a private Blockchain and makes hybrid Blockchain deployment a more affordable option for businesses.

Partner with Antier for Hybrid Blockchain Development Services 

Hybrid Blockchain combines the best of both private and public Blockchains to provide maximum security, scalability, privacy, and other benefits that other Blockchain variants lack. As more businesses are showing their interest in Blockchain technology, a significant increase in hybrid Blockchain usage would be observed in various industries. If you want to leverage the hybrid Blockchain development in the future, it is important to have a better understanding of the technology, and this blog has covered it all. 

Be it public, private, or even permissive protocols, Antier is an ideal partner that can match business requirements and provide tailored solutions. Our hybrid Blockchain development team easily integrates the solution into your existing system and ensures smooth functioning without any hassle. For more information, connect with us today!