The hybrid blockchain is best characterized as one that combines the greatest features of both private and public blockchain systems. In an ideal scenario, this blockchain would provide both regulated access and freedom. A hybrid blockchain is a unique sort of blockchain technology that combines elements of both public and private blockchains or strives to use the best of both. In this blockchain, transactions and data are kept secret, but they may be validated as necessary, for as by granting access through a smart contract. Although private information is stored within the network, it may still be verified. Even if a private entity owns the hybrid blockchain, it is unable to alter transactions.
TechPay Chain is a high level Scala-based functional programming language that compiles smart contract bytecode on the TechPay Network. TechPay Chain is a new type of blockchain structure, including data like hash and signatures. One unique component of TechPay’s design are interactive pieces that can store information such as smart contracts or indexing services for smart contracts on other blockchains (such as Bitcoin).
A hybrid blockchain enables businesses to set up a private, permission-based system alongside a public, permissionless system, allowing them to control who has access to specific data stored on the blockchain, as well as the data that is made public. A user who joins a hybrid blockchain network has full access to the network. Unless they participate in a transaction, the user’s identity is safeguarded and shielded from other users. The opposite party is then informed of their identification.
Functions in The Hybrid Blockchain
Once a user has been granted access to the hybrid blockchain platform; he may fully engage in the operations of the blockchain. He has the same ability to do transactions, inspect them, and even append or edit them. However, one item that is kept hidden from other players is the identity of the users. This is done to preserve the privacy of the user.
When a user transacts with another user, the party with whom he is interacting reveals just his identity. Companies and organizations use KYC (Know Your Customer) to guarantee that the aforementioned identification procedure is completed appropriately. Financial institutions, in particular, must manage it appropriately since they cannot enable a transaction to be completed by a user who is unknown to the blockchain.
The Anonymity of Public State
Even though the hybrid blockchain provides limited anonymity to the network’s participants, public anonymity is preserved. No one outside the network will be aware of the users in this way. This takes us to an intriguing point when public and private systems collide.
The hybrid network has all of the benefits of a public blockchain, including security, transparency, immutability, and decentralization. but it also controls access to transactions, views, and changes in any way. Furthermore, not everyone has access to the network, ensuring that secret information does not leave the network. As a result, the blockchain offers greater security because it combines both aspects. Let’s look at the advantages of a hybrid blockchain.
Benefits of Hybrid Blockchain
We now understand what hybrid blockchain is. Other varieties of blockchain, such as private and public, are also well-understood by us. Now it’s time to go through the advantages and features of hybrid blockchain. Working in a Strictly Limited Ecosystem: Changes the rules as needed, protects against a 51 percent attack, maintains privacy while communicating with the outside world, and has a low transaction cost.
Hybrid Blockchain Use Cases
To have a better grasp of hybrid blockchain, let’s go over some of the use-cases.
Hybrid IoT is the first use-case we’d like to address. With a comprehensive public blockchain solution, the internet of things can be difficult to govern since hackers will have free data to map nodes or even hack into them. The devices may be placed on a private network, with only those who require them having access to them using a blockchain. Depending on which data to publish, some features of the network can be made public. Many security challenges may be solved using a hybrid approach.
Global Finance and Trade
The hybrid blockchain may be used in finance as well. XinFin’s solution is built on a hybrid blockchain, with Ethereum serving as the public component and Quorum serving as the private component. Their goal is to create a technology-based global financial and commerce platform. They make use of DPOS (Delegated Proof-of-Stake).
A hybrid blockchain might be an excellent financial solution. This method may be used by banks to address problems internally while still securing user information. Even Ripple, a centralized cryptocurrency with a narrower emphasis, may switch to a hybrid blockchain network if necessary.
The hybrid blockchain has a lot of potential for supply networks. Because the supply chain is so large, becoming a hybrid is a must. Either a private or public blockchain cannot exist. It has already been implemented by many supply chain logistics organizations.
The IBM food trust is a good example of a supply chain that employs this blockchain. They want to boost efficiency across the whole food supply chain. It’s a network in which everyone participates, including farmers, wholesalers, distributors, and others. Walmart is also a participant in this initiative.
Blockchain technology has the potential to revolutionize government operations. Even governments are aware of this and have begun to implement blockchain in their governance. The government, for example, might utilize the blockchain to conduct elections, construct a public identification database, record complicated data, automate acquisitions, and give social/humanitarian aid, among other things.
Hybrid blockchains are required to make all of this viable. It gives the government the control they need while also allowing the public to have access to it. Neither a completely private nor a completely public blockchain will function since they either restrict user access or disclose too much data. The correct control of the blockchain may ensure that the government maintains control while using the blockchain.