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What are the Types of Blockchain?

Let’s understand blockchain and types of blockchain. Blockchain technology has different categories that serve different purposes. Let’s understand them in simple terms.

Public Blockchains:

Public blockchains are like open communities where anyone can join and participate. These communities rely on a system that ensures everyone agrees on the transactions happening in the community. Bitcoin is an example of this. It allows people to send and receive digital money in a secure and transparent way. Another example is Ethereum, which not only handles money but also allows people to create and run computer programs called “smart contracts.” These contracts automatically execute actions when certain conditions are met.

In simple terms, public blockchains are like big groups of people who trust each other to make sure everyone’s money is safe and transactions are honest. They are open to everyone, and people can use them to send money or create special programs.

Examles: Bitcoin, Ethereum, Litecoin etc.

Private Blockchains:

Private blockchains are like exclusive clubs. They are smaller groups of people who know and trust each other. Unlike public blockchains, private blockchains require permission to join. They are often used by businesses or organizations to manage their own transactions more efficiently. For example, a group of banks could use a private blockchain to settle payments between themselves quickly and securely. Private blockchains offer more control over who can join and what they can do, but they sacrifice some of the openness and transparency of public blockchains.

In simple terms, private blockchains are like small groups of friends who want to do things together without outsiders interfering. They are used by businesses and organizations to handle their transactions in a secure and controlled way.

Examples: Hyperledger Fabric, Corda, Quorum etc.

Consortium Blockchains:

Consorteum blockchains are like special clubs formed by a group of companies or organizations. They join forces to create a shared blockchain network where they can work together. In this network, they agree on rules and trust each other to handle their transactions securely. It’s a way for these organizations to collaborate and share information within a trusted circle while ensuring transparency and fairness.

In simple terms, consortium blockchains are like a team of companies or organizations that work together and share a special network to handle their transactions. They trust each other and have agreed on rules to keep things fair and secure.

Examples: IBM Food Trust, Global Shipping Business Network (GSBN).

Hybrid Blockchains:

Hybrid blockchains are a mix of public and private blockchains. They provide the best of both worlds. They allow organizations to use a public blockchain for some transactions while keeping other transactions private within their own network. This flexibility allows businesses to have transparency and security when needed while keeping sensitive information protected.

In simple terms, hybrid blockchains are like having a secret room inside a public space. You can do some things openly in the public space, but when you need privacy, you can go into the secret room where only trusted people have access.

Examples: Dragonchain, Aion.


Sidechains are additional blockchains that run alongside the main blockchain. They are like branches connected to a tree. Sidechains help with specific tasks or applications without overloading the main blockchain. They enable different blockchains to work together, securely transferring assets and data between them.

In simple terms, sidechains are like extra paths connected to a main road. They help to ease traffic and allow different vehicles to move smoothly between the main road and the side paths.

Examples: Liquid, Rootstock.

These categories of blockchain offer different levels of openness, control, and privacy. Public blockchains are open to everyone and provide transparency. Private blockchains are exclusive networks for specific groups. Consortium blockchains are collaborations between organizations. Hybrid blockchains combine public and private features. Sidechains are additional chains connected to the main blockchain. Understanding these categories helps us see the diverse ways blockchain technology can be used in various industries and applications.

Ruchi Tomar
Ruchi Tomarhttps://financiallanes.com
A full time blogger from last 1 year. experienced in content writing.


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