How Does Hybrid Blockchain Work?
A hybrid blockchain essentially has two interfaces: a private blockchain with its own ledgers and a public blockchain that aids in data verification between the private blockchain’s ledgers.
- Once a user is granted access to the hybrid blockchain platform, the user can fully participate in the blockchain’s activities.
- The user shares equal rights to do the transactions, view them, or even append or modify transactions.
- The identity of the users is kept a secret from other participants.
- When a user performs a transaction with another user on the network then only his identity is revealed by the party he is dealing with.
- Companies and organizations carry out KYC to ensure that the identification process is done correctly.
Example
- A company wishes to conduct a private transaction with another company. The transaction is processed by the two companies using a private blockchain.
- A digital record of the exchange is created and its validity is confirmed by the private blockchain.
- The private blockchain notifies the public blockchain that a transaction has happened once it has been confirmed.
- The transaction data from the private blockchain is incorporated into a new block that is created on the public blockchain.
- The transaction is made publicly apparent when the new block is added to the public blockchain’s ledger.
Hybrid Blockchain
The Blockchain is a decentralized distributed database that is shared among computer network nodes. Blockchain can be used in four different ways: Public, Private, Consortium, and Hybrid. The Hybrid blockchain is a revolutionary type of blockchain that is a mix of both worlds, both private and public blockchain.