March 25, 2023

What is a hybrid blockchain?

What is a hybrid blockchain?

Since the original Bitcoin blockchain was created, several different variations of it appeared. In this In this article, we will consider such a concept as a hybrid blockchain or a consortium blockchain.

The hybrid blockchain has a unique place inblockchain ecosystem, combining the benefits of private blockchain privacy with the benefits of security and transparency of the public blockchain. This gives companies significant flexibility in choosing which data they want to make public and transparent, and which private.

Public blockchains, being transparent andburglar resistant, slow and expensive, while private blockchains are somewhat centralized, but can provide much higher throughput and speed. Hybrid blockchains combine the advantages of both blockchains in an attempt to minimize disadvantages.

Consortium (hybrid blockchain validators)decides who can become a member of the blockchain or which transactions will be published. This ensures that the company can work with its stakeholders by limiting external intervention.

The real use of hybrid blockchains is demonstrated by the Ripple network and the XRP token, which are regularly criticized for being centralized.

It is worth noting that JPMorgan is developing a corporate version based on the Ethereum blockchain to combine its JPM coin with other banks on the new hybrid blockchain.