Blockchains are gaining popularity in both public and private enterprises for their applications. Individuals can use blockchains privately to store wealth that governments or hackers do not control. Blockchains are being used publicly to create better logistics, finance, and governance systems. The power stems from the fact that data stored on blockchains are resistant to tampering and is transparently accessible to all users. However, public or private blockchains still do not cover some applications. Here’s why hybrid blockchains are needed and how they can help solve enterprise problems.

1. What is Hybrid Blockchain?

The role of hybrid blockchain in solving enterprises problems

Depending on their architecture, hybrid blockchains fall somewhere between private and public blockchains. To understand hybrid blockchains, one must first understand the distinctions between private and public blockchains.

Public blockchains, as the name implies, are accessible to and managed by the public. Anyone can contribute to the blockchain’s upkeep and governance. Bitcoin, the most popular blockchain in the world, is a public blockchain. To reward good behavior by network peers, Block rewards are typically given to participants for their contributions to the network. Because a public blockchain is managed in real-time by millions of users worldwide, reaching a consensus for a public blockchain is time-consuming and costly.

It is now clear that each type of blockchain has advantages and disadvantages. While public blockchains are transparent and resistant to tampering, they are slow and expensive, whereas private blockchains are centralized but can provide significantly higher throughput and speeds. As a logical next step, hybrid blockchains combine the advantages of both blockchains while attempting to mitigate the disadvantages. As a result, with hybrid blockchains, we can use a public blockchain to make the ledger accessible to everyone on the planet, while a private blockchain runs in the background to control access to the ledger’s changes.

2. How can hybrid blockchain help solve enterprise problems?

The role of hybrid blockchain in solving enterprises problems

Let’s go over some of the hybrid blockchain use-cases to get a better understanding of the role of hybrid blockchain in solving enterprise problems.

Hybrid IoT

The first use-case we’d like to discuss is Hybrid IoT. The internet of things can be challenging to manage with a total public blockchain solution because it provides hackers free data to map nodes or even hack into them. The devices can be placed in a private network with only those who need access using a hybrid blockchain. Depending on the data to be shared, some aspects of the network can be made public. Many security issues can be solved using a hybrid approach.

Global Finance and Trade

The hybrid blockchain can use in finance as well. XinFin employs a hybrid blockchain, with Ethereum serving as the public component and Quorum serving as the private component of their solution. They aim to use hybrid technology to provide a global finance and trade platform. They make use of DPOS (delegated Proof-of-Stake).


A hybrid blockchain could be an ideal banking solution. Banks can use this approach to solve internal problems while protecting user information. Even Ripple, a more focused centralized cryptocurrency, can switch to a hybrid blockchain network if necessary.

Supply Chain

The hybrid blockchain can also benefit supply chains. Because the supply chain is so large, they must go hybrid. There can be no private or public blockchain. Many supply chain logistics firms have already implemented it.

The IBM food trust is a significant example of a hybrid blockchain in the supply chain. They want to increase efficiency throughout the food supply chain. It is a network in which everyone participates, including farmers, wholesalers, distributors, and others. Walmart is also involved in this project.

Enterprise Services

Last but not least, the hybrid blockchain will significantly affect enterprise services. It can use to create open-source technology and enterprise-grade solutions. Enterprises, for example, can use hybrid blockchain to automate their services and improve their reliability, trust, and transparency for both employees and end-users in industries such as aviation and the supply chain.


Hybrid blockchain is a ground-breaking type of blockchain technology. It is intended for organizations and businesses that want to use blockchain technology but do not want to expose their critical business data and processes to the world. If you need more information on service blockchain development solutions, contact SmartOSC.

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