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Uniqueness Of Algorand as a Hybrid Blockchain: What is Hybrid Blockchain and It’s Uses.

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Last updated on August 30th, 2020 at 02:32 am

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What is Hybrid Blockchain? There are hybrid Blockchains, yes. You might be wondering what they are. I will surely explain. Before that, let’s get to know what blockchain is.


Blockchain is a system or way of recording and keeping information in a way that makes it difficult or impossible to change and hack.

Literarily, blockchain is just a chain of blocks. But in a more educational (crypto) way, the word “block” and “chain” means digital information (the blocks) stored in a public database (the chain). 

By design, a blockchain is resistant to modification of the data. It is an open distributed ledger that records transactions between two or multiple parties accurately and permanently. 

Blockchain was invented by a person or group of individuals using the name Satoshi Nakamoto in 2008, and the name of the blockchain established is one of the most popular so far; BITCOIN.

Blockchain is categorized into different types, including hybrid blockchain also which I will explain clearly what it means to you.

But before I do that, let’s look at what private blockchain and public blockchain are for better understanding of what a hybrid blockchain is.


A private blockchain, also known as consortium blockchain is an invitation only blockchain. 

A private blockchain is governed by single entity. You will require an invitation to participate, meaning, you will require permission to read, write or audit the blockchain. 

Private blockchain can have multiple layers of data access so as to keep some (unique) data confidential.

There is a higher level of security, privacy and performance on a private blockchain. Private blockchain can be designed for sectors such as the financial sector and also for government services. 

Data on private blockchain cannot be publicly viewed, only the participating parties have access to it. Examples of private blockchain include; Hyperledger, Ripple (XRP), Quorum etc.


Public blockchain network was the first ever blockchain type. A public blockchain network is a blockchain network where anyone can join whenever they want without permission. 

There is no restriction to participate on a public blockchain. Anyone can see the ledgers and also participate in the consensus process. 

Public blockchains are decentralized and immutable (meaning, once an entry is made on the blockchain, it cannot be edited, modified or deleted). 

A public blockchain can be applied in public sectors like healthcare sector and also education sector. 

Health institutes can make use of public blockchain technology to store data of patients; cost of treatment, health conditions, days of appointments and many more. An example of public blockchain include Bitcoin, Ethereum, NEO etc.

Now that we have gotten to know what blockchain, public blockchain and private blockchain is, let’s proceed to what a hybrid blockchain is.


Hybrid blockchain which can be termed as the best of both worlds (private and public blockchain) is the blockchain that combines the good features of both public and private blockchain. 

Hybrid blockchain is described as using a public blockchain where a private network is hosted. 

Hybrid blockchain works by generating blocks using a private network and storing the data on a public network without altering the data content on the block.

The private network in a hybrid blockchain is discrete and no one can participate unless invited by the central Body.

Every transaction that takes place in a hybrid blockchain is kept private and always opened for verification when required. This ensures that each transaction is written and also immutable (can’t be changed or altered).

Read Also: Alogrand’s Pure Proof-Of-Stake and Process In Staking Algorand.


Algorand blockchain being the first of its kind is an open, permission-less, Pure Proof-of-Stake (PPoS) blockchain protocol which provides security, scalability and decentralization without forking. 

Read Also: Algorand Wallet Review 2020: Wallet Features and How to Set Up a New Wallet.

Algorand is designed to tackle blockchain trilemma. Algorand’s consensus mechanism is permission-less and algorand also make use if the Proof-of-Stake protocol which allows full participation, high speed and maximum protection in a decentralized network.


Algorand generally known to all is a public blockchain but can also be  classified as a hybrid blockchain.

Algorand make use of the good features of the two blockchains (public blockchain and private blockchain) thereby making it unique than other hybrid blockchains.

As a public blockchain, algorand offers pure decentralization, meaning; there is no central authority on the blockchain. This ensures immutability, transparency and accuracy of transaction which are the features many parties want on a blockchain.

Algorand is an hybrid blockchain as they introduced private and public chain interoperability, known as co-chains.

Algorand co-chain is useful in many ways. Let’s take for example an hospital database, on one hand, it needs to collect and analyze sensitive and private data (like health history, diseases etc) which should not be available for public view. 

On the other hand, it needs to store data that are not really sensitive and private (such as date of appointment with doctor, date of last appointment etc) which can be viewed by the public. 

Such an organization requires Algorand’s co-chain where there is a public chain for public data and also private chain for personal and sensitive data which can be assessed by the management alone (physicians).

In conclusion, making use of Algorand’s public and private Blockchain interoperating, organizations can control sensitive data from reaching the public chain and can also safely interact with the world on the public Blockchain.

Visit official website

Thanks for reading.

Written By Muhammad Yusuf — Algorand Ambassador.

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