Gone are the days when blockchain technology was all about the hype and excitement. It’s no longer solely focused on decentralization, airdrops and the mining of tokens. Blockchain technology is currently driving significant applications in various sectors such as finance, healthcare, logistics, and more.
However, the fact is that not every blockchain is built in the same way.
Based on the use case, target audience, and governance framework, there are four primary types of blockchains:
- Public Blockchains
- Private Blockchains
- Consortium Blockchains
- Hybrid Blockchains
Let’s break go into each one one and explain.
1. Public Blockchains
The OGs of decentralization.
Public blockchains are open to everyone. Think of them as the town square of blockchain tech. Anyone can join, verify transactions, and help maintain the network.
Key Features:
- Fully decentralized
- Permissionless (anyone can participate)
- Transparent and secure
- Uses Proof-of-Work or Proof-of-Stake
Popular Examples:
- Bitcoin – The is the first and foremost blockchain.
- Ethereum – Blockchain built for dApps and smart contracts.
- Litecoin – Faster than Bitcoin with lower fees.
- Dogecoin – A Meme coin that has turned into real currency.
- Bitcoin Cash – This is a faster and cheaper version of Bitcoin.
Pros:
- Open and censorship-resistant
- Transparent and trustless
- Strong security via decentralization
Cons:
- Slower transaction speeds
- High energy consumption (in PoW systems)
- Not ideal for private data
Public blockchains are perfect for open finance, decentralized apps, and community-led projects.
2. Private Blockchains
You can think of private blockchains like invite-only parties.
Private blockchains (also called permissioned blockchains) restrict who can access the network. These blockchains are ideal for businesses or enterprises that prioritize efficiency and control.
Key Features:
- Centralized or semi-centralized
- Access controlled by one organization
- Fast and scalable
Popular Examples:
- Hyperledger Fabric – This is built for enterprise use.
- Corda – Used in banking and insurance.
- Quorum – This is J.P. Morgan’s Ethereum-based network.
- Ripple – This is used for cross-border payments for banks.
Pros:
- Fast transaction speeds
- Enhanced privacy and control
- Easier to comply with regulations
Cons:
- Less decentralized
- Requires trust in a central authority
- Not suitable for public applications
Private chains are built for speed, privacy, and internal control. Ideal for businesses with strict compliance needs.
3. Consortium Blockchains
A little public. A little private.
Consortium blockchains are semi-decentralized systems managed by a group of organizations. They allow multiple trusted parties to maintain and use the same blockchain infrastructure.
Key Features:
- Shared control
- Collaborative and transparent
- Great for cross-company data sharing
Popular Examples:
- R3 Corda – This is commonly used in the banking sector.
- B3i – This blockchain is used for insurance.
- TradeLens – This is used for shipping and logistics (IBM + Maersk).
- Komgo – This is common among commodity trading platform.
- Hyperledger Fabric – Works in both private and consortium setups.
Pros:
- Balanced trust and control
- Efficient collaboration
- Higher speed than public chains
Cons:
- Requires trust between members
- Not fully decentralized
- Onboarding new members can be complex
If you’re looking at shared infrastructure across a specific industry (like supply chain or finance), consortium blockchains are a great fit.
4. Hybrid Blockchains
These is the best of both worlds.
Hybrid blockchains a mix between public and private blockchains. They’re flexible, and they allow for transparency when it is needed and strict privacy when required.
Key Features:
- Combines public + private capabilities
- Controlled access + optional public verification
- Customizable governance
Popular Examples:
- Dragonchain – Built by Disney, supports private + public transactions.
- Ardor – Has parent and child chains with varying access.
- Quorum – Can operate as a hybrid blockchain.
- Stellar – Public ledger with private transaction support.
- MultiChain – Custom chains for both public and private use cases.
Pros:
- Flexibility in use case
- Secure private data with public transparency when needed
- Custom rules for access and visibility
Cons:
- More complex architecture
- Governance challenges
- Interoperability requires custom engineering
Hybrid chains are great when you want to leverage both the security of public networks and the privacy of private ones—think public-facing apps with secure backend operations.
Quick Comparison Table
| Blockchain Type | Use Case | Control | Transparency | Speed |
|---|---|---|---|---|
| Public | DeFi, crypto, dApps | None | High | Low |
| Private | Internal systems, enterprise | High | Low | High |
| Consortium | Inter-org collaboration | Medium | Medium | Medium |
| Hybrid | Flexible apps, custom solutions | Custom | Custom | High |
Final Thoughts
The blockchain space isn’t one-size-fits-all.
Whether you’re:
- Building a decentralized app
- Launching a crypto project
- Or looking to improve your business processes with blockchain
Knowing the four types of blockchains will help you pick the right blockchain for the right use case.
Public blockchains win on openness.
Private blockchains win on control.
Consortiums win on collaboration.
Hybrid blockchains win on flexibility.
In the end, blockchain is just a tool. The magic lies in how you use it.
Frequently Asked Questions
What are the 4 types of blockchain?
Four prevalent categories of blockchain: public, private, hybrid, and consortium. An increasing variety of blockchain types fall under the categories of permissioned or permissionless
What are the 4 layers of blockchain?
What are the main components of blockchain technology? Blockchain is made up of five different layers: hardware infrastructure, data, network, consensus, and application layers. These layers manage tasks ranging from data storage to applications used by users
Can a blockchain be hacked?
How is a Blockchain Vulnerable to Attacks? An individual or a group of individuals might dominate a blockchain by wielding control over most of its computational strength, referred to as its hashrate. If they control over 50% of the hashrate, they can present a modified blockchain in a scenario known as a 51% attack