For enquiries call:



HomeBlogBlockchainTypes of Blockchain with Examples

Types of Blockchain with Examples

07th Sep, 2023
view count loader
Read it in
11 Mins
In this article
    Types of Blockchain with Examples

    Over the last ten years, Blockchain technology has undoubtedly advanced significantly. The first of the four types of blockchain was introduced with bitcoin, which presented a public blockchain, but there are various kinds of blockchain. The blockchain technology used by bitcoin is also known as the first generation of blockchain technology.

    We are currently at a phase where various types of blockchain technology exist; each has a certain function and addresses a specific problem or group of difficulties. Numerous businesses are employing these different types of blockchain technology to maximize the benefits. In this article, we will explain the blockchains' types and other related details.

    Look for Blockchain technology training online and learn in-depth Blockchain concepts with the guidance of industry experts.

    What is Blockchain?

    Blockchain, at its base, is a decentralized digital ledger that houses all types of data. Cryptocurrency transactions, NFT ownership, or DeFi smart contracts can all be recorded on a blockchain. A blockchain is a type of shared database, but in contrast to a traditional database, blockchains store information in blocks linked together using cryptography.

    Although this type of data can be stored in any traditional database, blockchain is special in that it is completely decentralized. Imagine an Excel spreadsheet or a financial database. Still, instead of being kept in one place by a single controller, a blockchain database is held on numerous identical copies on numerous machines dispersed throughout a network. Nodes are the collective name for these distinct computers, and there are various types of nodes in the blockchain.

    Some of the key features of blockchain are:

    • Fast: Without using any middlemen, transactions are sent directly from the source to the recipient.
    • Consistent: Blockchain networks run seven days a week, twenty-four hours a day, all over the world.
    • Cost-effective: Since blockchain networks do not have centralized, rent-seeking middlemen, they are less expensive to run.
    • Secure: The distributed network of nodes that makes up a blockchain defends against assaults and outages collectively.
    • Tamper-proof: Data on the blockchain is transparent and unchangeable once it has been time-stamped to the ledger, making it impervious to fraud and other illegal activity. A public blockchain network allows anybody with permission to observe the transactions made.

    Permissionless vs Permissioned Blockchains

    Permissionless, permissioned, or both can be used to categorize all different kinds of blockchains. Any user may access the blockchain network in an unknown fashion and be a "node," and permissionless blockchains do not limit the rights of nodes on the network.

    In contrast, permissioned blockchains limit the nodes that can access the network and their potential access rights. The other users of a permissioned blockchain are aware of the identity of the users of that blockchain.

    Since there are numerous nodes to validate transactions, permissionless blockchains are typically safer than permission blockchains since it would be challenging for malicious actors to coordinate on the network. Yet, due to the high number of nodes and the magnitude of the transactions, permissionless blockchains also frequently have slow transaction processing rates.

    Permissioned blockchains, in contrast, typically operate more effectively. There are fewer nodes on the blockchain due to limited network connectivity, which reduces the processing time required for each transaction.

    As with so many other benefits, there are drawbacks, and permissioned blockchains' faster processing times are no exception. Because permissioned blockchains are controlled by a single entity, they are less secure and more vulnerable to hacking attacks than decentralized systems. It could be a company, government, trade association, or other organization.

    Administrators of private blockchains must ensure nodes contributing and validating blocks are highly trustworthy since the fewer nodes on a blockchain, the simpler it is for malicious actors to work together. Learn from expert blockchain trainers and develop blockchain-based applications to earn a good Blockchain professional salary.

    What are the 4 Types of Blockchain Technology? 

    Mainly, there are three types of blockchain networks: public, private, and consortium. However, currently, there are four types of blockchain networks available:

    1. Public Blockchain

    How it works?

    A public blockchain is the first type of blockchain technology. The public blockchain is a permissionless distributed ledger technology that allows anyone to join and conduct transactions. It is an open variant in which each user keeps a copy of the ledger. It implies that anyone with access to the internet can explore the public blockchain.

    The bitcoin public blockchain was among the first public blockchains to be made available to the general public. It made it possible for anyone with an internet connection to conduct decentralized transactions.


    • The public blockchain is open to everyone.
    • It fosters trust throughout the entire user community.
    • Everyone is motivated to work toward enhancing the public network.
    • No middlemen are needed for the public blockchain to function.
    • Depending on how many nodes are involved, public blockchains are mostly safe.


    • The network may be slow, and businesses cannot impose access or use restrictions. According to Godefroy, attackers can unilaterally change a public blockchain network if they control 51% or more of its computing power.
    • Public blockchains also struggle with scalability. As more nodes connect to the network, it becomes slower.

    Use cases with examples.

    • The public blockchain has several applications. Let us list a few of them below so you can get a better sense.
    • Voting: Authorities can conduct public blockchain voting using credibility and accountability.
    • Fundraising: Organizations or projects can use the open blockchain to increase trust and accountability.

    2. Private (or Managed) Blockchain

    How it works?

    The easiest way to describe a private blockchain is as one that operates in a constrained setting, such as a closed network. Additionally, it is a blockchain with permissions that are managed by an organization. Private blockchains are fantastic if a privately held firm or organization wishes to use a blockchain for personal use cases. One can employ the blockchain efficiently and restrict access to the blockchain network. The company can also specify various network parameters, such as authorization, accessibility, etc.


    • Private blockchains operate quickly. It is because there are fewer users than on a public blockchain. Simply put, faster transactions occur from the network, reaching an agreement more quickly.
    • Private blockchains can scale better. Since only a restricted number of nodes in a private blockchain are authorized to validate transactions, scalability is made possible.


    • One of the greatest drawbacks of private blockchain is that it works against the fundamental principles of blockchain and distributed ledger technology as a whole.
    • It is challenging to establish confidence inside the private blockchain because the centralized nodes have the final say.
    • Last but not least, the security isn't too great because there aren't many nodes in this type of blockchain.

    Use cases with examples.

    • Management of the supply chain: Businesses can use a private blockchain to administer their supply chain.
    • Asset ownership: Assets can be traced and validated using a private blockchain.
    • Internal voting is another area where private blockchain is useful.

    3. Consortium Blockchain

    How it works?

    Another different type of blockchain technology is consortium blockchain. When an organization needs both public and private blockchain functionality, a consortium blockchain (sometimes referred to as federated blockchains) is an innovative way to address the issue. Some organizational characteristics in a consortium blockchain are made public, whereas others are kept private.

    The predetermined nodes in a consortium blockchain regulate the consensus processes. Even more so, it retains a decentralized aspect despite not being accessible to many people. How? A consortium blockchain is one that is controlled by numerous organizations. Therefore, there isn't just one centralized authority driving this outcome.


    • Blockchains created by consortiums are more scalable and secure.
    • Additionally, it is more efficient in comparison to public blockchain networks.
    • Features clear governing structures.


    • The integrity of the member makes the network vulnerable even when it is secure.
    • Less transparency.
    • Laws and censorship can significantly impact the effectiveness of a network.

    Use cases with examples.

    • Banking and Payments: A consortium of banks is a group working together. They have control over which nodes validate transactions.
    • Research: Data and findings from research can be shared using a consortium blockchain.
    • It is excellent for meal tracking as well.

    4. Hybrid Blockchain

    How it works?

    One of the various varieties of blockchain technology is hybrid blockchain. A hybrid blockchain, in particular, may appear like a consortium blockchain, but it isn't. There may be some commonalities between them, though.

    The easiest way to describe a hybrid blockchain is as a blend of a private and public blockchain. It has applications in organizations wishing to implement the greatest private and public blockchain features.

    Transactions and records in a hybrid blockchain are typically private, but they can be affirmed as needed, for example, by granting access via a smart contract. Private data can still be verified even though it is protected within the network. A private organization can own the hybrid blockchain but cannot change transactions.


    • Operates without the requirement to make everything public in a closed ecosystem.
    • Rules can be modified based on circumstances.
    • It provides privacy while remaining a part of a public network.


    • Not transparent enough.
    • The transition to the hybrid blockchain can be difficult.
    • There is no reward for joining the network and participating.

    Use cases with example

    • Real Estate: Hybrid networks can be used for this industry, allowing real estate firms to use them to operate their systems and share information with the public.
    • Retail: The hybrid network can be used to improve process efficiency.
    • Highly Regulated Industries: Hybrid blockchains are perfect for industries with strict regulations, such as the banking sector.

    Who Can Build a Blockchain Development Career?

    You must meet specific requirements to thrive in a profession in blockchain technology. You must first possess a high level of computer programming expertise. Second, you'll also need to be proficient in math.

    Finally, having knowledge of finance and economics is advantageous. These credentials will enable you to pursue a career in blockchain technology and get the expertise required to succeed as a blockchain developer.

    There are a few prerequisite skills and information that students need to possess to benefit the most from a blockchain training course. Having a fundamental understanding of computer science and some programming language skills is essential.

    A solid background in mathematics is also helpful because cryptography is a key component of blockchain technology. Finally, since so many blockchain applications involve monetary operations, it is also beneficial to have a fundamental knowledge of economics. Candidates can make the most of a blockchain training course and be prepared to apply this cutting-edge technology in their employment if they have these necessary abilities and knowledge. There are also different types of blockchain platforms.


    So, now that you know the different types of blockchain, you must make a choice. If you are a business and wish to employ blockchain without making anything public, using private blockchain is a fantastic choice. A public platform is also a smart choice if you want your network to be more transparent. However, do remember that they don't fit enterprise use cases well.

    KnowledgeHut Blockchain technology training provides one of the top blockchain courses that enable you to jump on the blockchain revolution and pursue your dream profession if you are just getting started and want to learn how each of these different types of blockchain functions. With this training, you can get practical and hands-on experience with blockchain types and examples.

    Frequently Asked Questions (FAQs)

    1How many Blockchains are there?

    Public blockchains, private blockchains, consortium blockchains, and hybrid blockchains are the four main types of blockchains.

    2What is the most used blockchain?

    Public blockchains that account for the mining and exchange of cryptocurrencies like Bitcoin is the most used blockchain.

    3What applications use blockchain?

    Money transfers, lending, insurance, real estate and voting are some of the applications of blockchain. 

    4Who invented blockchain?

    Under the alias Satoshi Nakamoto, some individuals created the digital money bitcoin and established the blockchain.


    Dr. Manish Kumar Jain

    International Corporate Trainer

    Dr. Manish Kumar Jain is an accomplished author, international corporate trainer, and technical consultant with 20+ years of industry experience. He specializes in cutting-edge technologies such as ChatGPT, OpenAI, generative AI, prompt engineering, Industry 4.0, web 3.0, blockchain, RPA, IoT, ML, data science, big data, AI, cloud computing, Hadoop, and deep learning. With expertise in fintech, IIoT, and blockchain, he possesses in-depth knowledge of diverse sectors including finance, aerospace, retail, logistics, energy, banking, telecom, healthcare, manufacturing, education, and oil and gas. Holding a PhD in deep learning and image processing, Dr. Jain's extensive certifications and professional achievements demonstrate his commitment to delivering exceptional training and consultancy services globally while staying at the forefront of technology.

    Share This Article
    Ready to Master the Skills that Drive Your Career?

    Avail your free 1:1 mentorship session.

    Your Message (Optional)

    Upcoming Blockchain Batches & Dates

    NameDateFeeKnow more
    Course advisor icon
    Course Advisor
    Whatsapp/Chat icon