Understanding the Four Types of Blockchains
Public, Private, Consortium & Hybrid — Which One Powers What?
Blockchain technology isn’t one-size-fits-all. As the technology evolves, we’re seeing different flavors of blockchain emerge — each tailored to specific use cases and governance models. In Episode 4 of Unpacking Blockchain Technology with Thabiso Njoko, we break down the four main types of blockchains and explain how each one functions in the real world.
If you’ve ever wondered why some blockchains are open and others are gated, this episode is your gateway to clarity.
The Four Main Types of Blockchains
Whether you're launching a cryptocurrency, managing a supply chain, or modernizing government services, choosing the right type of blockchain is critical. Here's how they compare:
1. Public Blockchains
These are fully decentralized and open to anyone. Anyone can read, write, or participate in the network. Popular examples include Bitcoin, Ethereum, and Solana.
Features:
Open-source
Transparent and secure
Powered by consensus mechanisms like Proof of Work (PoW) or Proof of Stake (PoS)
Use Cases:
Cryptocurrencies
NFTs
Decentralized Finance (DeFi)
Open-access Web3 applications
“Public blockchains are the backbone of the trustless Web3 world,” says Thabiso.
2. Private Blockchains
These are permissioned systems controlled by a single organization. Only selected participants can access the network or validate transactions.
Features:
High speed and scalability
Restricted access
Centralized authority and governance
Use Cases:
Internal business operations
Financial institutions
Healthcare data management
Think of private blockchains as enterprise-grade solutions for data security and control.
3. Consortium Blockchains
Also known as federated blockchains, these are governed by a group of organizations rather than a single entity. Each participant in the consortium has certain rights.
Features:
Semi-decentralized
Shared control among participants
Collaborative governance
Use Cases:
Supply chain tracking
Trade finance between banks
Joint ventures between corporations
These are ideal for industries that rely on shared infrastructure but don’t want to go fully public.
4. Hybrid Blockchains
As the name suggests, hybrid blockchains combine features of both public and private systems. This offers flexibility—you can keep some data public while keeping sensitive data private.
Features:
Controlled access + transparency
Combines the best of both worlds
Complex but powerful
Use Cases:
Government records (public data + confidential citizen info)
Healthcare systems (open research + private patient data)
Real estate platforms
Hybrid blockchains are perfect when trust, control, and openness need to co-exist.
How Do You Choose the Right One?
Thabiso emphasizes that context determines the blockchain. Ask:
Who needs access?
Who verifies the data?
How sensitive is the information?
What are the trust assumptions?
Each blockchain type serves a purpose. The key is understanding your goals before choosing the structure.
Real-World Examples
A public blockchain like Ethereum is widely used for DeFi and NFTs, while a private blockchain such as Hyperledger Fabric powers IBM's supply chain solutions. In the banking and finance sector, a consortium blockchain like R3 Corda is commonly used. Meanwhile, XinFin (XDC) serves as a hybrid blockchain, particularly effective in trade finance applications.
Final Thoughts from Thabiso
“Not every blockchain has to be open to the world. Some need privacy, speed, and control. But understanding why each model exists helps us build smarter systems.”
As blockchain adoption grows, knowing the differences between these models will shape how we design solutions, collaborate with others, and build trust across systems.
Tune In Now
Catch Episode 4 of Unpacking Blockchain Technology with Thabiso Njoko to hear the full breakdown and use-case comparisons.
Join the Discussion
Which blockchain type best fits your project or organization? Share your thoughts or questions in the comments — let’s unpack it together.