Private vs. Public vs. Hybrid: Choosing the Right Blockchain Model

Private vs. Public vs. Hybrid: Choosing the Right Blockchain Model

Private vs. Public vs. Hybrid: Choosing the Right Blockchain Model

A blockchain model is built on distributed ledgers, which have been used to manage data at the enterprise level for many years. However, there are many blockchain models which have differing features. This article analyzes how to choose a suitable blockchain model.


Did you know that Blockchain technology is used by over 40 million individuals worldwide? Blockchain technology has expanded quickly, becoming a term in various businesses. 


The global Blockchain industry is estimated to increase at a CAGR of 9% from USD 92 billion in 2021 to USD 1,431.54 billion by 2030. But are all Blockchain models created equal?


Understanding the various Blockchain models is critical for navigating the complicated environment of decentralized systems.


We can only do that with a proper background in blockchain technology.


What is Blockchain Technology? 

Blockchain technology is a sophisticated database technique that enables transparent information sharing within a business network. Data is stored in blocks that are linked together in a chain in a blockchain database. 


The data is chronologically consistent because you can only delete or amend the chain with network consensus. 


As a result, blockchain technology can establish an immutable ledger for recording orders, payments, accounts, and other transactions. 


The system includes techniques for preventing unauthorized transaction submissions and ensuring consistency in the shared view of these transactions.


Let’s look at some distinguishing features that make blockchain what it is. 


Features of Blockchain Technology

Blockchain technology is much more than just a backup network for Crypto. So, what are the key blockchain characteristics that make it so appealing? 


Why is it becoming so popular? Let’s delve more into some of blockchain’s features.

  1. Decentralization
  2. Immutability
  3. Hashing is irreversible



Blockchain is decentralized, which means there is no governing authority or one individual in charge of the structure. The network is instead maintained by a collection of nodes, making it decentralized.


This is one of the most important aspects of blockchain technology that works flawlessly. Allow me to simplify. Blockchain puts us users in an easy position. 


We can easily access the system via the web and keep our assets there because it does not require any regulating authority.


Cryptocurrencies, vital documents, contracts, and other significant digital assets can all be stored. And, thanks to blockchain, you will have direct control over them by utilizing your private key. 


As you can see, the decentralized system restores the ordinary people’s power and rights over their assets.



Immutability refers to the inability of something to be changed or altered. This is one of the most essential blockchain aspects for ensuring that the technology remains as it is – a permanent, unalterable network. 


But how does it keep that up?


Blockchain technology operates in a different manner than traditional banking systems. It ensures blockchain characteristics through a network of nodes rather than depending on centralized authorities.


Every system node has a copy of the digital ledger. Every node must validate a transaction before adding it. If the majority agrees, it is recorded in the ledger. This increases transparency and makes it impervious to corruption.


As a result, only one can add transaction blocks to the ledger if most nodes agree.


Another aspect that supports the list of significant blockchain features is that they cannot be changed once transaction blocks are added to the ledger. As a result, no one on the network can modify, remove, or update it.


Hashing is Irreversible 

Hashing is a sophisticated process that cannot be changed or reversed. No one can generate a private key from a public key. 


Furthermore, a single change in the input can result in an entirely new ID. Therefore, there are other options than modest changes in the system.


To corrupt the network, someone would have to change every piece of data held on every node in the network. There may be millions and millions of people, each with their own copy of the ledger. 


Accessing and hacking millions of machines is both problematic and expensive.


That is why it is one of the most helpful characteristics of blockchain. You won’t have to worry about hackers stealing all of your digital assets since it’s too difficult to circumvent.


Now that we understand the basic features of blockchain technology, amongst others, let us see the different available blockchain models. 


Types of Blockchain Models

We will compare three main types of blockchain models in this article. They are;

  1. Private blockchain model
  2. Public blockchain model
  3. Hybrid blockchain model


Private Blockchain Model

A private blockchain is a model operating in a restricted setting, such as a closed network, or a single entity controls that. While it functions similarly to a public blockchain network regarding peer-to-peer connectivity and decentralization, this sort of blockchain is substantially smaller in scale. 


Instead of allowing anybody to join and donate computer power, private blockchains are often run on a small network within a company or organization. 


Permissioned blockchains and business blockchains are other names for them.


Advantages of the Private Blockchain Model

The controlling organization determines permission levels, security, authorizations, and accessibility. 


For example, a company establishing a private blockchain network can control which nodes can see, contribute, or change data. It can also block unauthorized access to particular information.


Because of their small size, private blockchains can be very fast and execute transactions significantly faster than public blockchains.


Disadvantages of the Private Blockchain Model

Private blockchains have the controversial assertion that they are not actual blockchains, even though the underlying idea of blockchain is decentralization. 


Acquiring complete trust in information is also more challenging because centralized nodes select what is legitimate. A minimal number of nodes can also imply a lack of security. 


The consensus mechanism can be jeopardized if a few nodes go rogue.

Also, the source code of private blockchains is frequently proprietary and closed. 


Users need to audit or check it independently, which may reduce security. There is also no anonymity on a private blockchain.


Public Blockchain Model

A public blockchain model aids anyone with internet connectivity to join a blockchain platform and become an authorized node, which is permissionless and non-restrictive. 


In addition to performing mining operations—the intricate calculations needed to validate transactions and add them to the ledger—this user has access to historical and current information. 


Since the source code is often available for public access, no legitimate record or transaction on the network can be altered. Additionally, anybody can verify the transactions, report flaws, or suggest changes.


Advantages of the Public Blockchain Model

Public blockchains benefit from being independent of organizations; this means that even if the group that founded them were to shut down, the public blockchain would continue functioning as long as computers are still connected. 


“There are blockchains that reward users for dedicating computer power to network security,” said James Godefroy, a senior manager at Rouse, a company that offers intellectual property services.


Public blockchains also have the benefit of being transparent networks. Public blockchains are generally secure, provided that users adhere to security procedures and guidelines with meticulous attention.


Disadvantages of the Public Blockchain Model

Businesses cannot limit access or use, and the network may need to be more active. Hackers can unilaterally change a public blockchain network if they get at least 51% of its processing capacity.


Public blockchains could be more scalable, too. When more nodes join the network, its speed decreases.


Hybrid Blockchain Model

The hybrid blockchain model enables businesses to build up a private, permission-based system alongside a public, permissionless system, allowing them to manage who has access to specific data stored on the blockchain and what data is made public.


Transactions and records in a hybrid blockchain are typically not made public but can be verified when necessary by granting access via a smart contract. 


Confidential data is retained within the network but can still be confirmed. Even if a private entity owns the hybrid blockchain, it cannot change the transactions.


When a user joins a hybrid blockchain, they have full network access. The user’s identity is hidden from others unless they engage in a transaction. The other party is then informed of their true identity.


Advantages of the Hybrid Blockchain Model

One of the primary benefits of hybrid blockchain is that, because it operates within a closed environment, outside hackers cannot launch a 51% attack on the network. 


It also safeguards privacy while allowing communication with third parties. Transactions are cheap, quick, and scale better than a public blockchain network.


Disadvantages of the Hybrid Blockchain Model

Given that information can be hidden, this type of blockchain needs to be more transparent. It can also be challenging to upgrade, and users need more incentive to participate or contribute to the network.


We have seen the three types of blockchain models, and now let us address how to choose the right one suitable for your specific needs. 


Final Thoughts 

Ultimately, blockchain technology is growing in popularity, and businesses are quickly starting to back it. Every one of these blockchain models could be used in different ways to make deals more reliable, open, and trustworthy.


We have walked you through the three types of blockchain models and their advantages and disadvantages. It’s up to you to evaluate each model and find the one that best suits your needs.


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