There are many different types of blockchains. The three main types are the Public Blockchain, Private Blockchain and Hybrid Blockchain. Especially the latter has been growing in popularity lately. But what is the difference between these three blockchains? And which one is the best? I hope to give you more clarity about that in this article.

Quickly go to:

• public blockchain
  • The benefits of a Public Blockchain
  • The Disadvantages of a Public Blockchain
• Private Blockchain
  • Benefits of a Private Blockchain
  • Disadvantages of a Private Blockchain
• Hybrid Blockchain
  • The advantages of a Hybrid Blockchain
  • Disadvantages of a Hybrid Blockchain
• Which blockchain is the best?
• Conclusion

public blockchain

You could compare a Public Blockchain with a public place. Think for example of a park, the square in the city or the street. Anyone can come here, because they are public places. This is also how it works with a Public Blockchain. It is open to everyone, so everyone can participate.

In a public place, of course, the rules and laws that have been drawn up by the local authorities apply. Everyone must ensure that these rules are followed. This can be done by people who are also present in the park, or by enforcers, for example. If you do not comply with the rules, you can be held accountable for your behavior.

In a Public Blockchain, this is the consensus algorithm. This algorithm ensures that everyone who participates in the blockchain follows the rules. Subsequently, all participants of the blockchain ensure that everyone actually adheres to these rules.

An example of a Public Blockchain is Ethereum. Anyone can participate in the Ethereum blockchain network without any problems. Of course you have to stick to the rules that have been drawn up for this blockchain. If you do not do this, sanctions can be imposed by the other participants in the network, by means of the consensus algorithm.

In addition to Ethereum, Bitcoin and NEO also use a Public Blockchain. So there are a lot of (well-known) blockchains that use this.

The benefits of a Public Blockchain

A Public Blockchain has several advantages. These advantages can make this species much better suited to a particular situation than the Private or Hybrid Blockchain.

The main advantages are:

• It is public and completely open. This allows anyone to participate in the blockchain without an application.
• The Public Blockchain can be used anywhere in the world, because it is completely open to the public.
• It’s very open and clear. Everyone sees what is happening and can keep an eye on everything. This strengthens the consensus algorithm, and thus increases security.
• A Public Blockchain is safe. Because so many people can participate in the blockchain, there are also many copies of the blockchain making the blockchain even more decentralized. Making an adjustment in the history of the blockchain is therefore impossible.

The Disadvantages of a Public Blockchain

Of course there are also some disadvantages to a Public Blockchain. This is mainly because the Public Blockchain is so large and open. Think about:

• Too much privacy? Because a blockchain is good for privacy and open, it also attracts the wrong people. A Public Blockchain is often very attractive to criminals. They can participate in the blockchain without any problems and hide. In many cases, privacy is seen as an advantage, but it can also work against you
• A Public Blockchain takes a lot of energy. With a Public Blockchain, everyone is doing the same thing. That is the mining of blocks. However, there is always only 1 person who can be the ‘winner’. That means that when 100 people are mining a block, 99 people are busy with something that is of no use. So a lot of energy is wasted. This energy would be much better spent on something else.

Private Blockchain

Opposite the Public Blockchain is the Private Blockchain. You can probably already expect what the difference between these two blockchains is.

A Private Blockchain can be compared to the building of a company. You can only enter here if you are an employee of the company. Often you will also have to adhere to certain dress codes, and you will receive a pass to enter. Not following the rules? Then you run the risk of being fired.

The same goes for a Private Blockchain. You don’t just get access to the blockchain. The blockchain is completely shielded from the outside world. A Private Blockchain is often used by, for example, companies or government institutions.

An example of a user of the Private Blockchain could be a hospital. They can choose to store all patient data in a Private Blockchain. In this way, the data is stored securely and the chance of a data breach is much smaller than when this data is stored on a central server.

Benefits of a Private Blockchain

A Private Blockchain has several advantages that are not visible with the Public Blockchain. The main advantages are:

• Lots of privacy. Not everyone can participate in the blockchain, and everything that happens within the blockchain is shielded from outsiders.
• It is very safe, because there is only limited access to the blockchain. This allows you to ensure that you only allow trusted people into the network.
• Very efficient. A Private Blockchain is much easier to use for everyday situations. Consider, for example, the storage of data in the hospital. When an extra function is required, it is also much easier to add to the blockchain than with a Public Blockchain

Disadvantages of a Private Blockchain

Of course, there are also disadvantages to the Private Blockchain. The main drawback is:

• Single point of failure. When even one thing is wrong within the Private Blockchain, the entire system stops working. This is because there are far fewer participants in a Private Blockchain.

Hybrid Blockchain

In short, a Hybrid Blockchain is a mix between the Public Blockchain and Private Blockchain. As a result, it contains the advantages of the Public Blockchain and Private Blockchain, and only a few of the disadvantages. A number of these are lost due to the advantages of the other blockchain.

We can best describe the Hybrid Blockchain with the example of the hospital, as with the Private Blockchain. Suppose every hospital stores their data in a Private Blockchain. When a patient always goes to hospital A, all his data is stored in the Private Blockchain of hospital A. The same patient then has to go to hospital B for treatment. This hospital cannot access the data stored in the blockchain of hospital A. This is the moment of the Hybrid Blockchain.

Hospitals could link their blockchains together, so that they can relate to each other’s patient data. As a result, hospital B knows exactly which treatments the patient has already undergone at hospital A. It would of course be very useful if general practitioners, physiotherapists and dentists are also connected to this Hybrid Blockchain. For example, patient data is always available and can only be viewed by those who are really entitled to it. A leak in patient data is almost impossible, due to the security that the blockchain offers.

The advantages of a Hybrid Blockchain

As mentioned, the advantages of a Hybrid Blockchain mainly consist of a combination between the advantages of a Private Blockchain and Public Blockchain.

• A Hybrid Blockchain is not public, but it can be used anywhere in the world. This makes the security higher than, for example, with a Public Blockchain.
• There is a lot of privacy because the blockchain is protected.
• The Hybrid Blockchain can be as big or small as you want. As a result, you are not limited to the possibilities.

Disadvantages of a Hybrid Blockchain

However, there are of course also disadvantages to a Hybrid Blockchain:

• Difficult to install. Not everyone has the opportunity to start or participate in a Hybrid Blockchain. It is therefore mainly reserved for large organizations and companies.

Which blockchain is the best?

Many people like the Hybrid Blockchain best. This is because the Hybrid Blockchain actually contains the best of both the Private Blockchain and Public Blockchain. So the best of both worlds. But is that really the case?

In general, it mainly depends on what the blockchain is used for. When a blockchain is only used within one and the same (small) organization, a Private Blockchain could be much better, for example. A Private Blockchain is much easier for a small organization to install and use. As long as the blockchain is only used within the organization itself, the organization does not need a Hybrid or Public blockchain.

You would think that a Public Blockchain can also be used by organizations. However, a Public Blockchain is often much too large to be able to use it really functionally. That is also the reason why many organizations do not opt for a Public Blockchain.

As you can see, a Hybrid Blockchain is much easier and more functional to use. Because it is scalable, this blockchain can be made as large or small as possible, making it useful in various situations. Because the Hybrid Blockchain is shielded and not everyone has access to this blockchain, it is also a lot safer and more efficient.

Conclusion

The main difference between the Public Blockchain, Private Blockchain and Hybrid Blockchain is therefore in the accessibility. The associated advantages and disadvantages then determine in which situation a particular blockchain could best be used. As a result, a Private Blockchain may be much more usable than the Hybrid Blockchain in some situations, even though its popularity is increasing.