Hybrid blockchain vs Consortium blockchain: Key difference to know in 2023

Hybrid blockchain vs Consortium blockchain: Key difference to know in 2023

Blockchain is causing a stir in the digital world. It has been an astounding platform that is leading the way in making corporate transactions by delivering a high level of security. Because of this, clients all over the globe tend to hire Ethereum blockchain developers, Microsoft .NET professionals, and Java experts to develop smart contract projects with breakless security. The selection between a hybrid and consortium blockchain will be determined by the organization’s or use case’s particular demands. While both forms of blockchain have distinct advantages and disadvantages, recognizing the fundamental distinctions can assist firms in making educated judgments about which type of blockchain is best for them. This blog will explain what a hybrid blockchain is and how it differs from a consortium blockchain.

1. Hybrid blockchain

The hybrid blockchain is the finest blockchain since it incorporates and functions as both public and private blockchain. There are no gatekeepers in comparison to others. As a result, we may conduct transactions without having to comply with any KYC regulations. In practice, hybrid blockchain design/architecture is traceable, not available to everybody, and customizable, yet it still provides many characteristics such as transparency, security, and integrity. Members/one can finalize which transactions are public or who can participate in the hybrid blockchain.

When a person has access to the hybrid blockchain platform, he gains the ability to perform transactions, change transactions, and observe transactions. And the user’s identity will be kept hidden from the other participants. A hybrid blockchain works technically by producing data in hash data blocks using a private network and sorting this data in public without jeopardizing data privacy.

Like a consortium blockchain, a hybrid blockchain has the advantages of a permission privacy blockchain. Unlike a consortium blockchain withseveral participants/users assisting in network maintenance, a hybrid blockchain can only have one participant or network administrator.

There are several use cases for hybrid blockchains, such as IoT, real estate, finance and trade, banking, and so on. We can utilizethe hybrid blockchain to store medical records, and governments can use it to keep citizen data confidential while exchanging it securely between institutions. Hybrid IoT is particularly valuable since it may be placed/added in a private network while only allowing access to those who require it.

A hybrid blockchain is a blendedmix of public and private blockchains.

A hybrid blockchain is a mix of two interfaces: a public blockchain that aids in the verification of data kept between private blockchain lists or ledgers, and a private blockchain. In this case, the private blockchain is utilized to generate hashes of transactions, which are then validated with the public blockchain.

With a hybrid blockchain, businesses can keep data inaccessible or secured from the public, but the same data can be made public for verification purposes.

Organizations using hybrid blockchain systems regulate the following:

1) Which data may be checked/opened publicly?

2) Who has access to which blockchain data?

3) Which data should be kept confidential/personal on a private network?

There are two sorts of nodes/users in the hybrid blockchain based on the degree of information they access:

1) The first sort of nodes/users are those that are part of a private blockchain and have control over the blockchain and the level of security permissions for a given user.

2) The 2ndtype of node (user) is one that is a member of the public blockchain and can only examine the data that has been released on the blockchain.

Although a group of people controls (manage) the hybrid blockchain network, they cannot modify transaction security. They only have control over which tractions are made public and which are not.

Organizations may regulate this by employing hybrid blockchain.

  • Who has access to which data?
  • Which data can be made public?
  • Which data should be kept confidential?

Advantages of hybrid blockchain:

The key advantage of the hybrid blockchain is that it operates in a closed environment, which means that external hackers cannot launch 51% of network assaults. It guarantees privacy while yet allowing communication with third parties. As compared to a public network, it provides inexpensive and rapid transactions as well as strong scalability.

• Flexibility: – Provides a technique for customizing records based on our demands and the needs of the network.

• Privacy: – Protects users or nodes from privacy risks while allowing shareholders, third-party contacts, and public access.

Disadvantages of Hybrid Blockchain:

  1. It’s not completely transparent.
  2. Upgradation is very much challenging.
  3. Users are not getting incentives for contributing.

Consortium blockchain:

Consortium blockchains are basicallyauthorize-based blockchains and are managed by a group. The committee determines how the blockchain will operate. It is a hybrid of private and public blockchains. This blockchain operates on a limited access model, with access to the first place determined by the organization. Therefore, limited access equals speedier processes/transactions, better transaction privacy, and scalability. This blockchain is permission-based, as it requires the authorization of the gatekeeper to accessing the rest of the blockchain network. There are more gatekeepers with the same or equal control, making the system more decentralized. The consortium blockchain is useful for facilitating organizational collaboration.

The benefits of blockchain technology are no less. The consortium blockchain is beneficial when a lot of organizations operate in the same sector and require a single platform to conduct, generate or transport information.

The consortium blockchain is not private; no organization or individual has complete control of the blockchain. In practice, various organizations/groups acting as validators or authorizers collaborate to create the environment that is the blockchain network’s benefit. In comparison to public and private blockchain networks, it has decentralization, security, efficiency, and scalability. When there are few participants, we do really well.

Also Read: What are the benefits of Blockchain Technology in E-commerce?

Any node in a consortium blockchain may open or view a transaction, but no node can add a new one without the consent or approval of the other nodes. The technique for adding a block is based on a voting mechanism. And for this method, all nodes must vote to validate the block.

Most organizations and businesses are focusing on consortium blockchain since it aids in the development of solutions to numerous industrial difficulties. As a result, these organizations, who share the same vision or observation, have equal power on the consortium blockchain to ensure accountability, efficiency, and transparency. As a result, businesses may build on current blockchain technology to achieve their goals or objectives without beginning from scratch.

There is no one authority in the consortium blockchain for seeing, handling, or controlling control, resulting in a decentralized system. There is no one authority, which implies that a set of corporations makes choices for the whole network. These organizations are known as consortiums.

Industries like as finance, banking, healthcare, and insurance are ideal candidates for consortium blockchain.

The consortium blockchain is the ideal combination of public and private setups, providing enhanced privacy and sufficient decentralization.

Consortium blockchains, unlike public blockchains, are not focused on cryptocurrency. As with consortium blockchain, only pre-selected businesses or partners are permitted to join, and no monetary or incentive is necessary. Participants will be confirmed or authorized in advance and removed if any other participants engage in harmful behavior.


In comparison to the hybrid blockchain, the consortium blockchain is safer, more efficient, and more scalable. It functions similarly to a hybrid and private blockchain, with access limits. In contrast to a public blockchain, a consortium blockchain does not have transaction fees.

In comparison to public and private blockchain networks, the Consortium blockchain network contains fewer nodes. There is no centralization because there are various owners from different organizations.

1. Security: Information on the network is not accessible to the general public; only network users have access to it.

2. Control: A consortium blockchain is not governed by a single authority, but rather by a collection of approved participants or users who have power over the network or chain.

3. Faster transaction speed: Transactions are substantially faster since there are fewer nodes than in public and private blockchain networks.

Also Read: Why Are Businesses Opting For Blockchain Smart Contract Development?


If one or more owners are compromised, the consortium blockchain is readily corrupted. Occasionally organizations or consortium blockchain members resist partnerships, slowing the field’s progress.

• Lack of transparency: Because the consortium blockchain is less transparent, it is vulnerable to hacking, and the blockchain’s rules can render or demonstrate the network untreatable.

• Slow upgrade: When the number of users or participants grows, upgrading becomes more difficult. Since the work of upgrading requires the approval of every member.

• Flexibility: Establishing a consortium blockchain is difficult since all members must approve the protocol for communication.

This brings us to the end of this blockchain-based blog. I hope it helps you learn a lot about blockchain technology.


To summarise, Blockchain is an amazing and leading technology for corporate transactions that provides a high level of security. There are several varieties and use cases for each. In this blog, we learned what the hybrid blockchain and consortium blockchain are, what are their benefits and drawbacks, and what the fundamental distinctions are between them.


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