Understanding the Different Types of Blockchain: A Comprehensive Guide 2023

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Types of Blockchain

In today’s world technology changing so quickly, in the Era of web3, one phrase “blockchain” is becoming more and more popular. All of them, from financial organizations to healthcare providers to regular people, appear to be discussing it. However, what is blockchain precisely, and more importantly, what are the many forms of blockchain and how are they different from one other? To provide readers with a clear knowledge of the many forms of blockchain technology, we will explore this topic in-depth without using any fancy terminology or jargon.

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Blockchain Unveiled

Let’s start with the basics before delving into the vast world of blockchain. Blockchain is simply a distributed ledger that records transactions across multiple computers. These transactions are broken into blocks, linked together in a chain, and encrypted. The attraction of blockchain is built on its openness, security, and decentralized nature, which eliminates the need for middlemen and ensures the authenticity of every transaction.

Blockchain’s decentralized nature means no single entity has control over the data, which leads to trust and security, two critical aspects that have fueled its growth. Now, let’s explore the different types of blockchain

1. Public Blockchains

Public blockchains are, as the name suggests, open to the public. They are decentralized networks where anyone can participate, view the entire transaction history, and even create new blocks. Bitcoin and Ethereum are prime examples of public blockchains. The parameters that differentiate public blockchains are:

  • Access Control: Public blockchains are open to anyone. No permission is required to participate or access the network.
  • Transparency: Transactions are visible to all participants.
  • Consensus Mechanisms: Public blockchains often use proof-of-work (PoW) or proof-of-stake (PoS) as their consensus mechanisms.

2. Private Blockchains

On the other end of the spectrum, we have private blockchains, which are restricted to a select group of participants. They are commonly used by businesses for various purposes, such as supply chain management and record-keeping. Key parameters that differentiate private blockchains include:

  • Access Control: Private blockchains have a strict access control mechanism, allowing only authorized participants.
  • Transparency: The level of transparency can vary, with some private blockchains restricting access to transaction data.
  • Consensus Mechanisms: Private blockchains often use consensus mechanisms like Byzantine Fault Tolerance (BFT) or Practical Byzantine Fault Tolerance (PBFT).

3. Consortium Blockchains

Consortium blockchains strike a balance between public and private blockchains. They are governed by a group of organizations rather than a single entity. These organizations work together to maintain the blockchain. Key parameters that set consortium blockchains apart are:

  • Access Control: Consortium blockchains have a controlled membership, with participating organizations collaborating to manage the network.
  • Transparency: They offer transparency to a certain extent, but it can be more limited compared to public blockchains.
  • Consensus Mechanisms: Consortium blockchains may employ a variety of consensus mechanisms, often tailored to the needs of the participating organizations.

4. Hybrid Blockchains

Hybrid blockchains are, as the name implies, a combination of two or more types of blockchains. They are versatile and can be customized to meet specific requirements. Parameters distinguishing hybrid blockchains include:

  • Access Control: It depends on the specific hybrid model, as they can incorporate elements from public, private, or consortium blockchains.
  • Transparency: Varies according to the combined types.
  • Consensus Mechanisms: Hybrid blockchains can implement a mix of consensus mechanisms depending on the use case.

5. Permissioned Blockchains

Permissioned blockchains are similar to private blockchains in that they restrict participation to authorized entities. However, they differ in some key aspects:

  • Access Control: Permissioned blockchains are more focused on controlling who can participate rather than who can access data.
  • Transparency: They can provide varying degrees of transparency depending on the design.
  • Consensus Mechanisms: They can use consensus mechanisms like Practical Byzantine Fault Tolerance (PBFT) or Raft.

6. Sidechains

Sidechains are auxiliary chains that run alongside a primary blockchain, allowing for the transfer of assets and data between them. The parameters that differentiate sidechains include:

  • Access Control: Typically, sidechains inherit the access control mechanisms of the main blockchain.
  • Transparency: It varies based on the sidechain’s design.
  • Consensus Mechanisms: They often adopt the consensus mechanism of the main blockchain.


What are the different types of blockchains?

There are several types of blockchains, including public blockchains, private blockchains, consortium blockchains, hybrid blockchains, permissioned blockchains, and sidechains. Each type has its own set of characteristics and use cases.

What is the difference between public and private blockchains?

Public blockchains are open to anyone and are often used for cryptocurrencies like Bitcoin. Private blockchains, on the other hand, are restricted to authorized participants, and commonly used in enterprise applications.

How is a consortium blockchain different from a public or private blockchain?

Consortium blockchains are governed by a group of organizations, striking a balance between public and private blockchains. They offer controlled access to a network and are often used for collaborative industry projects.

What are hybrid blockchains, and when are they used?

Hybrid blockchains combine features of two or more blockchain types. They are highly customizable and can be tailored to meet specific requirements, making them suitable for various use cases.

What is the purpose of permissioned blockchains?

Permissioned blockchains restrict participation to authorized entities while still allowing varying levels of transparency. They are commonly used in applications where trust and access control are essential.

Are blockchain transactions anonymous?

Blockchain transactions are not inherently anonymous. While they use pseudonyms, the transaction history is public and can be traced. However, some blockchains, like Monero, offer enhanced privacy features.

Can blockchain technology be used for purposes other than cryptocurrencies?

Yes, blockchain has a wide range of applications beyond cryptocurrencies, including supply chain management, healthcare, voting systems, and more. It’s a versatile technology with the potential to revolutionize various industries.

Is blockchain technology environmentally friendly?

The environmental impact of blockchain varies depending on the consensus mechanism used. Proof-of-work (PoW) blockchains, like Bitcoin, can be energy-intensive, while proof-of-stake (PoS) and other mechanisms are more energy-efficient


In conclusion, blockchain technology is not a one-size-fits-all solution. The different types of blockchains – public, private, consortium, hybrid, permission, and sidechains – offer unique features and cater to diverse use cases. Understanding these types and their differentiating parameters is crucial for making informed decisions in the rapidly evolving world of blockchain technology. So, whether you’re a tech-savvy individual, a business owner, or just a curious mind, this knowledge will help you navigate the blockchain landscape with confidence. Remember, the blockchain revolution is still in its early stages, and the possibilities are endless.

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