What Are the Different Types of Blockchain Networks?

Blockchain Networks

NOV, 21, 2023 14:00 PM

What Are the Different Types of Blockchain Networks?

Blockchain technology has revolutionized various industries by providing a secure and transparent way to record and transfer data. However, not all blockchain’s are created equal. There are different types of blockchain networks, each designed to serve specific purposes and cater to unique requirements. In this blog, we will explore the diverse world of blockchain networks, their variations, and the distinct characteristics that set them apart.

Blockchain Defined

A blockchain is a decentralized ledger that allows data to be securely shared. Blockchain technology allows a group of selected participants to share data securely. Blockchain cloud services allow data from different sources to be collected, integrated, and shared quickly. The data is divided into blocks and then chained with cryptographic hashes to create unique identifiers.

Blockchain ensures data integrity by providing a single, verifiable source of data. This eliminates data duplication while increasing security.

A blockchain system prevents fraud and data tampering because data cannot be changed without the consent of most parties. Blockchain ledgers can be shared but cannot be altered. All participants will receive an alert if someone attempts to alter the data.

What is Blockchain Technology?

Imagine a blockchain-like record of all transactions. Each block "chains" with the block before it in a sequential order recorded immutably across a peer-to-peer network. The cryptographic trust and assurance technologies apply a unique identifier, or digital fingerprint, to each transaction.

The chain is forged with trust, accountability, security, and transparency. This allows many companies and trading partners to share and access data. It is a phenomenon called third-party consensus-based trust.

Participants maintain a record of each transaction in a decentralized and highly resilient manner. Blockchain doesn't require additional overheads or intermediaries. A decentralized single source of fact reduces the costs of trusted business transactions between parties who may not trust each other. In a permission network, which most enterprises use, only authorized participants can participate, and they each maintain an encrypted record for every transaction.

This unique technology can be used by any company or group that requires a real-time record of transactions. It is secure and easily shared. This unique technology does not store everything in one place, which leads to greater security and accessibility, as well as a lack of a central vulnerability.

Here are some key definitions to help you understand blockchain, its technology, and its applications:

Decentralized Trust

Organizations use blockchain technology to guarantee data integrity without relying on a central authority. Decentralized trust is achieved through reliable data.

Blockchain Blocks

The name comes from the fact that the data is stored as blocks. Each block is linked to the block before it, creating a chain-like structure. You can only add new blocks (append them) to a blockchain using blockchain technology. After a block is added to the blockchain, it cannot be modified or deleted.

Consensus Algorithms

Algorithms that enforce rules in a blockchain system The consensus algorithm ensures that the rules set by the participants are adhered to.

Nodes of the Blockchain

Nodes are the storage units that keep data up-to-date or in sync. Nodes can determine quickly if a block has been modified since it was first added. A new full node that joins the network downloads all the current blocks. The new node can then receive new blocks, just like any other node, after synchronizing with other nodes.

Blockchain Networks: The Basics

Blockchain Networks

Before delving into the types of blockchain networks, let's establish a foundational understanding of what blockchain is and how it operates.

At its core, a blockchain is a distributed ledger that records transactions across a network of computers. These transactions are grouped into blocks, which are cryptographically linked to one another, creating a chain. Once a block is added to the chain, it becomes nearly impossible to alter previous transactions, ensuring the integrity and security of the ledger.

One of the defining features of blockchain networks is decentralization. Rather than relying on a central authority, such as a bank or government, blockchain operates on a peer-to-peer network. Each participant (node) in the network has a copy of the entire blockchain, and they work together to validate and record new transactions. This consensus mechanism ensures trust and security within the network.

Now, let's explore the different types of blockchain networks.

Public Blockchains

Public blockchains are open and permissionless networks, meaning anyone can participate without approval. These blockchains are often associated with cryptocurrencies and are known for their transparency, security, and immutability.


Bitcoin, created by an anonymous entity known as Satoshi Nakamoto, is the most famous example of a public blockchain. It was designed as a digital currency and uses a proof-of-work (PoW) consensus mechanism to validate transactions. Anyone can join the Bitcoin network, and its ledger is entirely transparent, with all transactions visible to anyone.


Ethereum is a versatile public blockchain known for its innovative contract capabilities. It enables developers to create decentralized applications (DApps) on its platform. Ethereum uses a PoW consensus mechanism, similar to Bitcoin, but is transitioning to a proof-of-stake (PoS) system, Ethereum 2.0, to improve scalability and energy efficiency.


Litecoin is often called the "silver" to Bitcoin's "gold." It is a public blockchain that shares many similarities with Bitcoin, such as the PoW consensus mechanism. However, Litecoin offers faster transaction confirmation times and a different hashing algorithm (Scrypt) to increase mining accessibility.

Public blockchains are known for their robust security, as they rely on a decentralized network of miners to validate transactions. However, they can be slower and less scalable due to the energy-intensive PoW mechanism.

Private Blockchains

Private blockchains, also known as permissioned blockchains, are restricted networks where access is limited to authorized participants. These networks are commonly used in enterprise settings to streamline processes, enhance security, and control sensitive information.

Hyperledger Fabric

Hyperledger Fabric is an open-source, permissioned blockchain platform developed by the Linux Foundation. It is designed for enterprise use cases, offering fine-grained access control and the ability to create private channels for confidential transactions.


Corda, developed by R3, is a permissioned blockchain platform tailored to the financial industry. It focuses on enabling secure and private transactions between participating institutions, such as banks and financial services providers.


Quorum, created by J.P. Morgan, is designed for enterprise and financial applications. It supports private transactions, data privacy, and high-performance processing.

Private blockchains are preferred in business environments where data privacy, control, and scalability are paramount. These networks may use different consensus mechanisms, such as Practical Byzantine Fault Tolerance (PBFT) or Raft, to achieve efficiency and confidentiality.

Consortium Blockchains

Consortium blockchains represent a middle ground between public and private blockchains. They are semi-decentralized networks in which a group of organizations collaborate to manage the blockchain. Consortium blockchains are ideal for industries or ecosystems where multiple entities need to work together while maintaining a degree of control.

R3 Corda

Corda can also function as a consortium blockchain, allowing multiple organizations to collaborate within a controlled network.


B3i is a consortium of insurance companies that operates a blockchain network for sharing and managing insurance-related data and contracts.

The Linux Foundation's Hyperledger Consortium

Hyperledger, as a whole, comprises several blockchain projects, and many of them are consortium-based. These projects cater to various industries and use cases, including supply chain management and healthcare.

Consortium blockchains offer increased privacy and efficiency compared to fully public blockchains, allowing multiple organizations to participate in the network.

Hybrid Blockchains

Hybrid blockchains combine elements of both public and private blockchains. They allow for public participation while providing privacy and control over sensitive data. These networks are versatile and can be adapted to various use cases.


Dragonchain is a hybrid blockchain platform that enables businesses to build and deploy intelligent contracts while controlling access and data security.

Quorum (Hybrid Mode)

Quorum, while primarily a private blockchain, offers a hybrid mode that allows limited public participation in certain transactions.


Aergo is a hybrid blockchain platform that aims to bridge the gap between public and private blockchains, offering the benefits of both.

Hybrid blockchains provide flexibility, allowing organizations to balance transparency with confidentiality according to their specific requirements.

Permissionless Private Blockchains

Permissionless private blockchains are a relatively new concept, offering privacy and control while also allowing open access to a select group of participants. These networks are designed to strike a balance between security and inclusivity.

Oasis Network

The Oasis Network is a permissionless private blockchain that utilizes secure enclaves to protect data and offers open participation while maintaining privacy and control.

Keep Network

Keep Network enables the creation of privacy-preserving intelligent contracts on a permissionless blockchain, allowing open participation while safeguarding sensitive data.

Permissionless private blockchains are well-suited for cases where data privacy is critical but open access is still desired.


Sidechains are separate blockchains connected to a parent blockchain (the mainchain). They enable the transfer of assets or data between the mainchain and the sidechain while maintaining their distinct functionalities and rules.

RSK (Rootstock)

RSK is a sidechain to the Bitcoin blockchain that enables smart contracts, merging Bitcoin's security with the capabilities of Ethereum-like intelligent contracts.

Loom Network

Loom Network is a platform that creates sidechains for various blockchains, allowing developers to build decentralized applications with enhanced scalability.

Sidechains often address scalability issues or implement specific features without altering the mainchain's protocol.


The world of blockchain networks is far from one-size-fits-all. There are various types of blockchains, each with its own set of characteristics and use cases. Whether you're an enthusiast exploring the possibilities of cryptocurrencies, a business owner seeking efficient supply chain solutions, or a developer creating decentralized applications, understanding the differences between these blockchain types is crucial.

Blockchain technology continues to evolve, and new variants and innovations are constantly emerging. As the blockchain landscape expands, it's essential to stay informed about the latest developments and choose the right blockchain network that aligns with your specific needs and objectives. Whether you're drawn to the transparency of public blockchains, the control of private blockchains, or the versatility of hybrid solutions, blockchain solutions are tailored to your requirements, waiting to be explored and harnessed for a wide range of applications.

With a growing array of blockchain networks, the future holds limitless possibilities for industries, businesses, and individuals looking to leverage this transformative technology.


Q1: What is a public blockchain, and how does it differ from other blockchains?

Answer: A public blockchain is an open and permissionless network accessible to anyone. It's characterized by transparency and decentralization, with no central authority controlling it. In contrast, private and consortium blockchains are permissioned networks, restricting access to authorized entities.

Q2: What are the advantages of using a private blockchain for business purposes?

Answer: Private blockchains offer enhanced data privacy, control, and scalability. They suit industries where sensitive data must be shared among trusted participants. Private blockchains often use different consensus mechanisms to achieve efficiency and maintain confidentiality.

Q3: How does a consortium blockchain work, and why would organizations use it?

Answer: A consortium blockchain is a semi-decentralized network where multiple organizations collaborate while retaining some control. It's suitable for industries or ecosystems where various entities must collaborate, sharing data and processes securely. Consortium blockchains provide privacy and efficiency.

Q4: What is the key benefit of using a hybrid blockchain, and in which scenarios is it commonly employed?

Answer: A hybrid blockchain combines features of both public and private blockchains, offering flexibility. It's used when a balance between transparency and data confidentiality is required. Hybrid blockchains can adapt to various use cases, benefiting both public and private networks.

Q5: What is the purpose of sidechains, and how do they enhance the blockchain ecosystem?

Answer: Sidechains are separate blockchains connected to a mainchain. They allow assets or data to be transferred between them while maintaining distinct functionalities. Sidechains enhance the blockchain ecosystem by addressing scalability issues, implementing specific features, and providing interoperability between different blockchains.

Q6: What are permissionless private blockchains, and when should they be considered?

Answer: Permissionless private blockchains are a novel concept, offering privacy and control while allowing open participation by a select group. They are suitable for use cases where data privacy is critical but open access and participation are desired. These networks bridge the gap between public and private blockchains, offering the best of both worlds.

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Contact US!

India india

Plot No- 309-310, Phase IV, Udyog Vihar, Sector 18, Gurugram, Haryana 122022

+91 8920947884


1968 S. Coast Hwy, Laguna Beach, CA 92651, United States

+1 9176282062

Singapore singapore

10 Anson Road, #33-01, International Plaza, Singapore, Singapore 079903

+ 6590163053