What Are the Different Types of Blockchain? 4 Types of Blockchains!

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Table of Contents
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Key Takeaways:

  • There are four types of blockchains: public, private, consortium, and permissioned. Each type is designed to suit different needs and circumstances
  • Public blockchains are ideal for decentralized applications (dApps) and cryptocurrencies. Private blockchains are suitable for secure internal processes in organizations
  • Consortium blockchains enable industry collaborations among multiple stakeholders. Permissioned blockchains cater to regulated industries by providing control over network access

Types of Blockchain Networks

There are four types of blockchain: public, private, consortium and permissioned. Public blockchains are decentralized and open to anyone, while private blockchains are restricted to a specific group or organization.

Consortium blockchains are semi-decentralized and involve multiple organizations working together. The permissioned blockchain gives explicit access to its users which is more of a centralized approach in contrast to the decentralized and open source blockchain technology

Our comprehensive guide demystifies these complex categories, making it easy for anyone – even without tech expertise – to understand this innovative technology. Read on as we break down everything you need to know about public, private, consortium and hybrid blockchains!

Public Blockchain

Public blockchains are open to anyone and allow anyone to participate in the network. They are transparent and decentralized, meaning that no single entity has control over the network.

Public blockchains use a consensus mechanism, such as proof of work or proof of stake, to validate and verify transactions. This ensures that all transactions on the blockchain are secure and trustworthy.

Public blockchains are most commonly associated with cryptocurrencies like Bitcoin and Ethereum, where anyone can join the network, mine or validate transactions, and participate in governance decisions.

Private Blockchain

Private blockchains are restricted to a specific group or organization, and only authorized participants can join the network. These blockchains provide enhanced privacy and control over the network, making them suitable for organizations that require secure internal processes and confidential transactions.

Private blockchains are commonly used in enterprise settings where sensitive information needs to be shared among trusted parties without exposing it to the public. They offer fast transaction speeds and lower costs compared to public blockchains since they do not rely on consensus mechanisms involving multiple participants.

With private blockchains, organizations can ensure data integrity, streamline operations, and maintain confidentiality within their network.

Consortium Blockchain

Consortium blockchains are a combination of public and private blockchains, where a group of organizations come together to manage and maintain the network. They offer a balance between decentralization and control.

With consortium blockchains, the participating organizations jointly make decisions about the rules and governance of the network. This type of blockchain is often used for industry collaborations or in situations where multiple parties need to work together while maintaining some level of control over the network.

It allows for shared access to information and resources while ensuring that only authorized participants can join and participate in the network.

Permissioned Blockchain

Permissioned blockchains are designed for regulated industries and require participants to have explicit permission to join the network. Unlike public blockchains, which are open to anyone, permissioned blockchains restrict access and only allow authorized participants to participate in the network.

This type of blockchain provides greater control and privacy for organizations that need to comply with strict regulations. Permissioned blockchains are commonly used in industries such as finance, healthcare, and government sectors where data security and confidentiality are crucial.

They offer a more centralized approach while still maintaining some level of transparency and decentralization within the network.

Use Cases and Benefits of Different Types of Blockchain

Public blockchains are ideal for decentralized applications and cryptocurrencies, as they offer open access to anyone and provide transparency and immutability. Private blockchains, on the other hand, are perfect for secure internal processes within organizations, ensuring that sensitive information remains protected.

Consortium blockchains enable industry collaborations by allowing multiple organizations to participate in managing and maintaining a shared network. Lastly, permissioned blockchains cater to regulated industries by providing control over who can join the network while still offering the benefits of decentralization and transparent record-keeping.

Public Blockchain for Decentralized Applications and Cryptocurrencies

Public blockchains are open to anyone and allow for the creation of decentralized applications (dApps) and the use of cryptocurrencies. These blockchains are transparent and accessible, as anyone can participate in the network as a node.

This means that no single entity has control over the blockchain, ensuring trust in transactions and eliminating the need for intermediaries. Public blockchains provide a secure platform for developers to build dApps without relying on a central authority, enabling innovation in various industries such as finance, supply chain management, and healthcare.

Cryptocurrencies like Bitcoin and Ethereum operate on public blockchains, providing users with financial autonomy and secure digital transactions.

Private Blockchain for Secure Internal Processes

Private blockchains are specifically designed for organizations and businesses to have secure internal processes. This type of blockchain restricts access to a specific group or organization, ensuring that only authorized participants can join the network.

By implementing a private blockchain, companies can maintain control over their data and transactions while still benefiting from the transparency and security of blockchain technology.

This makes private blockchains ideal for industries that require strict confidentiality and privacy, such as finance, healthcare, and government sectors. With private blockchains, organizations can streamline their operations, improve efficiency, reduce costs, and enhance data security within their internal processes.

Consortium Blockchain for Industry Collaborations

Consortium blockchain is a type of blockchain network that brings together multiple organizations from the same industry to collaborate and share resources. In this type of network, a group of companies form a consortium and work together to manage and maintain the blockchain.

Consortium blockchains offer a balance between decentralization and control, allowing participants to have more influence over the network while still maintaining some level of privacy.

This type of blockchain is particularly useful for industries that require collaboration among multiple stakeholders, such as supply chain management or healthcare systems where different organizations need to securely share data and transactions.

Permissioned Blockchain for Regulated Industries

Permissioned blockchain networks are specifically designed for regulated industries and organizations that require strict control over who can participate in the network. In a permissioned blockchain, only authorized participants can join and validate transactions, ensuring compliance with industry regulations and standards.

This type of blockchain offers increased privacy and security, as access to the network is restricted to trusted entities. It enables regulated industries such as healthcare, finance, and supply chain management to leverage the benefits of blockchain technology while maintaining regulatory compliance.

By implementing a permissioned blockchain, these industries can streamline processes, increase transparency, and securely share sensitive data among authorized participants.

Key Features and Working of Blockchain Technology

The key features of blockchain technology include distributed ledger, immutability and transparency, consensus mechanism, and smart contracts. Blockchain works by creating a decentralized network of nodes that verify transactions and store them in a secure and tamper-proof manner.

Distributed Ledger

distributed ledger is a component of blockchain technology, extensively contributing to its robustness and security. Unlike traditional ledgers that are maintained by a centralized authority, such as a bank, a distributed ledger records information across multiple sites or nodes in the network.

This decentralization ensures every participant in the network holds an identical copy of the ledger, making data tampering extremely difficult. Transaction details are recorded instantaneously and remain unalterable – creating an immutable record trail.

The application of distributed ledgers isn’t restricted to financial transactions; they can also verify and securely store various types of data including voting records, land titles, and medical records.

In this manner, distributed ledgers stand as one pivotal feature propelling blockchain technology’s rapid adoption across diverse sectors.

Immutable and Transparent

Blockchain technology is known for its immutability and transparency. The concept of immutability means that once a transaction or data entry is recorded on the blockchain, it cannot be altered or tampered with.

This is because each transaction is linked to the previous one through cryptographic hashes, creating a chain of blocks that are securely connected.

The transparency aspect of blockchain refers to the fact that all transactions recorded on the blockchain can be viewed by anyone in the network. This transparency ensures accountability and trust among participants, as everyone has access to the same information.

Any changes made to the blockchain are visible to all users, further enhancing transparency.

Consensus Mechanism

The consensus mechanism is an essential component of blockchain technology that ensures agreement and trust among participants in the network. It is the process by which distributed nodes validate transactions and reach a consensus on the state of the blockchain ledger.

There are various consensus mechanisms, such as Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (DPoS).

In PoW, nodes compete to solve complex mathematical puzzles to validate transactions and add them to the blockchain. This process requires significant computational power, making it secure but energy-intensive.

PoS relies on validators who hold a certain number of cryptocurrency tokens as collateral. Validators are chosen based on their stake in the network, allowing for faster transaction validation while reducing energy consumption.

Smart Contracts

Smart contracts are a key feature of blockchain technology that allows for the automation and execution of predefined actions without the need for intermediaries. These self-executing contracts are coded with certain conditions, rules, and triggers that when met, automatically trigger the agreed-upon actions.

In a supply chain scenario, a smart contract could automatically release payment to the supplier once the goods have been delivered and verified by all parties involved.

This eliminates the need for manual verification processes and reduces the risk of fraud or disputes. Smart contracts offer increased efficiency, accuracy, and cost savings in various industries such as finance, supply chain management, real estate, and more.

Concerns and Challenges Surrounding Blockchain Technology

There are several concerns and challenges surrounding blockchain technology, including scalability, governance and regulation, security and privacy, and interoperability.


Scalability is one of the biggest challenges facing blockchain technology. As more transactions are added to the network, it becomes increasingly difficult for the system to handle the load.

This can result in slower transaction speeds and higher fees. There are several solutions being developed to address this issue. For example, layer 2 solutions such as Lightning Network and sidechains allow for off-chain transactions that can be settled on the main blockchain at a later time, increasing scalability.

Advancements in sharding and consensus algorithms aim to improve blockchain’s ability to process a larger number of transactions simultaneously without compromising security or decentralization.

Governance and Regulation

Governance and regulation are important considerations in the world of blockchain technology. As blockchain networks become more widely adopted, there is a need for clear governance frameworks and regulations to ensure the security, privacy, and integrity of transactions.

As with any emerging technology, there may be gray areas when it comes to legal and regulatory compliance. Governments around the world are working towards creating legislative frameworks that address these concerns.

Some countries have introduced specific regulations for cryptocurrencies and initial coin offerings (ICOs), while others are exploring ways to regulate smart contracts and data protection on the blockchain.

Security and Privacy

Security and privacy are key concerns when it comes to blockchain technology. One of the main benefits of blockchain is its built-in security features. The decentralized nature of the technology makes it difficult for hackers to manipulate or tamper with the data stored on the blockchain.

Each transaction is verified by network nodes, ensuring that only valid transactions are added to the ledger.

Blockchain provides enhanced privacy compared to traditional centralized systems. While transactions on a public blockchain are transparent and visible to all participants, personal information can be kept anonymous through encryption techniques.

Private blockchains offer even greater privacy as they restrict access to authorized participants only. This ensures that sensitive data remains confidential within a closed network environment.


Interoperability is a key factor in blockchain technology, referring to the ability of different blockchains or networks to communicate and interact with each other seamlessly.

It enables the transfer of assets and data across multiple platforms, promoting collaboration and expanding the possibilities for decentralized applications. Interoperability allows users and organizations to leverage the strengths of different blockchain networks without facing limitations or being locked into a single system.

This seamless integration between blockchains also facilitates tokenization, enabling efficient exchange of digital assets across various networks. As blockchain adoption continues to grow, interoperability becomes increasingly important in creating a connected ecosystem that fosters innovation and efficiency.


What is the Difference Between a Public and Private Blockchain Network?

The main difference between a public and private blockchain network is the level of accessibility. In a public blockchain network, anyone can participate and view the transactions and records. In a private blockchain network, access is restricted to a specific group of participants.

What Are the Features of a Private and Public Blockchain?

A private blockchain offers enhanced privacy and control over transactions and records, while a public blockchain provides transparency and accessibility to anyone. Both types have their own advantages depending on the specific use case.

What Are Some Examples of Private Blockchains?

Some examples of private blockchains include Hyperledger Fabric, R3 Corda, and Quorum. These platforms are commonly used for enterprise and business applications where privacy and control are important.

Which Type of Blockchain is Best Suited for My Business?

The choice of blockchain type depends on various factors such as the level of privacy required, the number of participants, the need for decentralization, and the specific use case of your business. It is recommended to consult with experts to determine the most suitable type of blockchain for your needs.

How Are Transactions and Records Stored in the Blockchain?

In a blockchain, transactions and records are stored in blocks and linked together in a chronological order. Each block contains a hash value that uniquely identifies the block and its contents. Once a block is added to the blockchain, it cannot be modified or tampered with.

Conclusion: There Are Different Types of Blockchains

Whether you’re interested in decentralized applicationssecure internal processesindustry collaborations, or regulated industries, there is a type of blockchain network that can meet your needs.

While there are concerns and challenges surrounding blockchain technology, its benefits such as transparency and security far outweigh any drawbacks. So dive into the world of blockchain with confidence and explore the endless possibilities it offers!



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About the Author:
Jordan Adams, with a rich background in Finance and Economics and specialized knowledge in blockchain, is a distinguished voice in the cryptocurrency community. Their journey in fintech and digital currency trading has equipped them to offer unique insights into digital finance. Jordan's writing demystifies cryptocurrency concepts with well-researched, practical advice. Engaged in the crypto community, Jordan shares timely market insights, fostering understanding of complex technologies and their practical applications in the evolving digital currency landscape.