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What are the 4 Types of Blockchain Technology?
thedinarian
August 18, 2023
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What are the 4 Types of Blockchain Technology?

Blockchain technology has emerged as a game-changer in various industries, offering unparalleled security, transparency, and efficiency. However, not all firms have the same requirements when it comes to adopting blockchain.

Developers have crafted various blockchain types to meet organizations’ diverse needs.

In this article, we will explore “What are the 4 Types of Blockchain Technology?”: public blockchain, private blockchain, hybrid blockchain, and consortium blockchain. Let’s dive in and understand each type in detail.

Overview

Blockchain, in its essence, is a decentralized database that is shared among computer network nodes. It enables the secure recording and verification of transactions using cryptographic hashes and a distributed ledger.

The technology eliminates the need for a central authority, ensuring data integrity and preventing fraud and data tampering.

What is Blockchain?

Blockchain is a decentralized database that allows for the secure recording and verification of transactions.

It operates on the principle of a distributed ledger, where transactional data is divided into blocks and linked together using cryptographic hashes.

This unique ID ensures data integrity and prevents tampering or unauthorized changes. Blockchain technology has gained popularity due to its ability to eliminate the need for intermediaries, increase transparency, and enhance security.

Why Do We Need Different Types of Blockchain?

Different organizations have distinct requirements when it comes to blockchain technology.

While some may prioritize openness and transparency, others may require more control over their network. To cater to these diverse needs, different types of blockchains have been developed.

Each type offers specific characteristics and benefits, allowing organizations to choose the most suitable option for their operations. Let’s explore the 4 main types of blockchain technology in detail.

 

What are the four Types of Blockchain Technology?

Public Blockchain

A public blockchain, also known as a permissionless blockchain, is a distributed ledger where anyone with an internet connection can join and conduct transactions.

It is a non-restrictive form of blockchain, with each participating node having a copy of the entire blockchain.

This openness allows for transparency, as all authorized nodes can access and verify transactions.

Public blockchains often use consensus algorithms like Proof of Work (PoW) or Proof of Stake (PoS) to validate transactions and secure the network.

Advantages of the Public Blockchain:

  • Trustable: Public blockchains use consensus algorithms to ensure the authenticity of transactions and prevent fraud.
  • Secure: A large number of participants in a public blockchain makes it highly secure, as hacking the entire network requires tremendous computational power.
  • Open and Transparent: Public blockchains provide transparency, as all authorized nodes have access to the blockchain records.

Disadvantages of the Public Blockchain:

  • Lower TPS: Public blockchains have a lower transaction processing speed as the consensus algorithms require time to validate transactions.
  • Scalability Issues: As the network expands, the processing speed of public blockchains decreases, posing scalability challenges.
  • High Energy Consumption: Proof of Work consensus algorithms, used in public blockchains like Bitcoin, consume significant energy. Energy-efficient consensus methods are essential for the future of public blockchains.

Uses of the Public Blockchain:

  • Cryptocurrencies: Public blockchains like Bitcoin and Ethereum are widely used for mining and exchanging cryptocurrencies.
  • Notarization: Public blockchains can be used for creating a fixed record with an auditable chain of custody, such as electronic notarization of documents.
  • Social Support Groups: Organizations built on transparency and trust, such as social support groups, can benefit from the openness of public blockchains.

Private Blockchain

Private blockchains, often called permissioned blockchains, function within closed networks or under the control of a single organization.

In contrast to public blockchains, private blockchains are confined to a chosen group of participants.

Additionally, these participants are granted access to the blockchain network, which is often password-protected.

Private blockchains provide organizations with more control and privacy over their data, making them suitable for internal operations.

Advantages of Private Blockchain:

  • Speed: Private blockchains outpace their public counterparts in transaction processing speed due to their restricted node count.
  • Scalability: Organizations can easily scale their private blockchains to meet their specific requirements, making them highly scalable.

Disadvantages of Private Blockchain:

  • Trust Building: In a private blockchain, trust extends only to participating nodes, which the controlling organization pre-approved.
  • Lower Security: Private blockchains are more vulnerable to security breaches compared to public blockchains as they have a smaller number of nodes.
  • Centralization: Private blockchains require a central Identity and Access Management (IAM) system, which can limit decentralization.

Uses of Private Blockchain:

  • Supply Chain Management: Private blockchains can be used to manage supply chain operations within an organization, ensuring transparency and trust.
  • Asset Ownership: Private blockchains can track and verify asset ownership, providing a secure and auditable record.
  • Internal Voting: Private blockchains can enable internal voting processes within organizations.

 

Hybrid Blockchain

Hybrid blockchain combines the features of both public and private blockchains, offering the best of both worlds.

Furthermore, it allows organizations to create a private, permission-based system alongside a public, permissionless system.

Hybrid blockchains maintain private transactions and records, yet validation is possible via smart contracts when needed.

Advantages of Hybrid Blockchain:

  • Secure: Hybrid blockchains operate within a closed environment, preventing external attacks on the network.
  • Cost-Effective: Hybrid blockchains provide privacy while allowing communication with third parties. Transactions are inexpensive and quick, with better scalability than public blockchains.

Additionally, here are the disadvantages of Hybrid Blockchain:

  • Lack of Transparency: Hybrid blockchains may lack full transparency as certain information can be hidden from public view.
  • Less Incentive: Upgrading a hybrid blockchain can be challenging, and users may have little incentive to participate in or contribute to the network.

Uses of Hybrid Blockchain:

  • Real Estate: Real estate companies can use hybrid blockchains to run their systems privately while offering certain information, such as property listings, to the public.
  • Retail: Hybrid blockchains can streamline retail processes, ensuring secure and transparent transactions.
  • Highly Regulated Markets: Industries like banking, which operate in highly regulated environments, can benefit from the privacy and security of hybrid blockchains.

Consortium Blockchain

Consortium blockchain, also known as federated blockchain, involves multiple organizations collaborating on a decentralized network.

Additionally, unlike public or private blockchains, consortium blockchains require consensus among predetermined nodes.

These nodes are responsible for initiating, receiving, and validating transactions within the network.

Advantages of Consortium Blockchain:

  • Secure: Consortium blockchains offer enhanced security, scalability, and efficiency compared to public blockchains.
  • Access Controls: Consortium blockchains provide access controls, allowing organizations to determine which nodes can validate transactions.

Disadvantages of Consortium Blockchain:

  • Lack of Transparency: Consortium blockchains may have lower transparency compared to public blockchains, and a security breach can compromise the network’s functionality.
  • Centralized Governance: Consortium blockchains require a centralized governance structure, which provides administrative and monitoring capabilities.

Uses of the Consortium Blockchain:

  • Banking and Payments: Banks can form a consortium blockchain to collaborate on secure and transparent transactions.
  • Research: Research organizations can use consortium blockchains to share data and outcomes securely.
  • Supply Chain Management: Consortiums of organizations can utilize blockchain to track and verify supply chain operations.

 

Conclusion: What are the four Types of Blockchain Technology?

In conclusion, the 4 different types of blockchain technology cater to the diverse needs of organizations.

Furthermore, public blockchains offer openness and transparency, while private blockchains provide control and privacy.

Additionally, hybrid blockchains combine the benefits of both public and private blockchains, and consortium blockchains allow collaboration among multiple organizations.

Understanding the characteristics and use cases of each type is crucial for organizations to choose the most suitable blockchain for their operations.

As blockchain technology continues to evolve, it will reshape industries and revolutionize the way we conduct transactions and manage data.

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⭐️ The future of the financial system
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Don’t miss it!

https://x.com/Ripple/status/1950640088469176761

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thedinarian@thedinarian
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XRP = A functional Utility Cryptocurrency ✅

Clear?😶‍🌫️

OP Smqkedqg

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thedinarian@thedinarian
1 hour ago

There will be a LOT of spam, scam, uncertainty and crime surrounding the Midnight airdrop (@midnightfdn).

There is currently no action required.

While @XamanWallet is self custodial and technically no one needs us to participate, we will digest information about the airdrop as it becomes available, and make sure to make it as easy as possible for
@XamanWallet users to participate in the airdrop.

We will communicate about this in-app, through an xApp to prevent confusion and scammers taking advantage of the uncertainty on social media.

When users can take action to participate, we will inform our users though in-app communication.

Trust NO SOCIAL MEDIA.
Trust NO WEBSITE.
Trust NO DM-MESSAGES.
Trust NO (potentially fake) XRPL Labs / Xaman staff on social.

Trust only our in app support xApp, and the in app Midnight Airdrop information we will communicate once more information is made available by the Midnight/Glacier/... team.

https://x.com/WietseWind/status/1950548314392326354

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thedinarian@thedinarian
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— The Epicenter, powered by Pyth Network

 

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thedinarian@thedinarian
July 27, 2025
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4 Fintech Companies 💸& Things To Know About 🤔

The fintech revolution is reshaping the way we manage, invest, and move money, breaking down traditional barriers and empowering individuals worldwide. As financial technology continues to evolve at a rapid pace, a select group of innovative companies are leading the charge by offering groundbreaking solutions that redefine banking, payments, and digital assets. Whether you’re a savvy investor, an industry professional, or simply curious about the future of finance, discovering these trailblazing fintech companies is essential to understanding today’s dynamic financial landscape.

 

  1.  Alina Invest - The AI Wealth Manager for GenZ Women

Alina is aimed at women under 25 who identify as beginner investors. They're an SEC-registered investment advisor that charges $120/year for membership. The service "buys and sells for you" and gives up notification updates of recent transactions like a wealth manager would.

👉 Getting people to invest early is crucial to building long-term wealth. One thing that holds them back is a lack of confidence and experience. Being targetted "for beginners" and people who live on TikTok should appeal. I love the sense of "we're buying and selling for you." Funds always do that, but making it an engagement mechanic is very smart. The risk here is that building a wealth business will take decades for the AUM to compound. But the next generations, Wealthfront or Betterment, will look something like Alina.

2. Blue layer - The Carbon project funding platform

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👉 Carbon investing and tax credits are heavily incentivized but need transparent data. By focusing on the developers, Bluelayer can ensure the data, reporting, and credits lifecycle is all managed at the source. This is smart.

3. Akirolabs - Modern Procurement for enterprise

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4. NeoTax - Automated Tax R&D Credits

NeoTax allows companies to connect their engineering tools to calculate available tax advantages automatically. Once calculated, the tax fillings are clearly labeled with supporting evidence for the IRS.

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In an era where technology and finance are increasingly intertwined, these four fintech companies stand out as catalysts for positive change. By driving progress in digital payments, asset management, lending, and decentralized finance, they are not only making financial services more accessible and efficient—they are also paving the way for a more inclusive and empowered global economy. Staying informed about their innovations can help you seize new opportunities and take part in the future of finance.

 

👀Things to know 👀

 

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🤔 The PayPal button (branded) is losing to SHOP Pay and Apple Pay. The branded experience from Apple and Shopify is delightful for users; it’s fast and helps with small details like delivery tracking. That experience translates to higher conversion (and more revenue) for merchants.

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🤔 Making a single platform from PayPal, Venmo, and Braintree won’t be easy. There’s a graveyard of payment company CEOs who tried to make “one platform” from things they acquired years ago. It’s crucial if they’re going to grow that they get their innovation edge back. Adyen has one platform in every market.

🤔 PayPal’s UK and European acquiring business is a bright spot. The UK and EU delivered 20% of overall revenue, growing 11% YoY. Square and Toast don’t have market share here, while iZettle, which PayPal acquired in 2018, is a strong market player. Overall though, it’s yet another tech stack and business that’s not part of a single global platform.

The two banks provided accounts to UK front companies secretly owned by an Iranian petrochemicals company. PCC has used these entities to receive funds from Iranian entities in China, concealed with trustee agreements and nominee directors. 

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🤔 The "risk-based approach" has been arbitraged. A UK company with relatively low annual revenue would look "low risk" at onboarding. One business the FT covered looked like a small company at a residential address to compliance staff. They'd likely apply branch-level controls instead of the enterprise-grade controls you'd see for a large corporation. 

🤔 Hiring more staff won't fix this problem; it's a mindset and technology challenge. In theory, all of the skill and technology that exists to manage risks with large corporate customers (in the transaction banking divisions) are available to the other parts of a bank. In practice, they're not. Most banks lack a single data set and the ability for compliance officers in one team to see data from another part of the org. Getting the basics right with data and tooling is incredibly hard and will involve a multi-year effort. 

🤔 These things are rarely the failure of an individual or department; the issue is systemic. While two banks are named in this headline, the issue is everywhere. Banks need more data and better data to train better AI and machine learning. That all needs to happen in real-time as a compliment to the human staff. Throwing bodies at this won't solve the visibility issue teams have.

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thedinarian@thedinarian
July 27, 2025
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What is XAH and Xahau?

If you're new to XRP, you may have noticed some of us discussing another network named 'Xahau'.

It's Like XRP ... But Different

The Xahau network was created in 2023, and its starting point was the open-source code for the XRP Ledger. A small team of researchers and entrepreneurs decided to add smart contracts to the network code.


The XRP Ledger has no smart contract capabilities, by default.

To integrate smart contracts, the team decided to use an architecture that includes 'WASM' or 'web assembly' code. Each account can have up to 10 'hooks' installed that are triggered for transactions that match specific criteria. They can run before or after a transaction is processed. This enables a variety of use cases that do not involve the need to change the network's core code.

Hooks

A 'hook' is what is known as a smart contract that can be triggered in relation to a specific account and its transactions.

The term arises from the programming world, where it generally means "code that runs based on triggering conditions." In Xahau's case, it indicates code that is run before, or after, a transaction is processed.
 
Each hook must be installed on a specific account by the party that controls the account - i.e., the secret key holder.
 
What Can XAH Do That XRP Cannot?
 
The primary benefit from the use of hooks, is that the core network code does not need to be changed every time a new use case is identified. This means that additional use cases can be addressed immediately, with no requirement for intervening steps, such as:
  • Community review
  • Community approval
  • Amendment voting
All of those steps are eliminated with the use of hooks; new use cases can be addressed as fast as the code can be developed.
 
To read more about how hooks enables Xahau to handle more use cases than even the XRPL, you can read this article:
 
Key Differences From XRP
 
Other unique differences from the XRP Ledger include:
  • Much smaller supply ~612 million coins vs. 100 billion coins
  • XAH hodlers are rewarded at 4% of their account balance. There are no rewards for XRP.
  • Governance participants are incentivized
  • Payment channels available for user-created tokens (IOUs)
  • URI tokens instead of NFT tokens
Who's Who of Xahau?
 
The list of those that are either founders, or closely associated with the founding organizations, is extensive. Here are the names of three organizations mentioned in the whitepaper, or their current moniker:
  • Xaman (a.k.a. XRPL Labs)
  • Gatehub
  • InFTF (Inclusive Financial Technology Foundation)
There exists a long list of impressive developers, architects, and technologists among the Xahau inner circle. But the three names that people associate most prominently with the leadership of the Xahau network are Wietse Wind, Richard Holland, and Denis Angell. The links to their 'X' accounts are:
 
Friend Or Foe?
 
This topic is one of the most contentious.
 
While Ripple, the company with the largest stake of XRP, showed interest in hooks early on, they ultimately decided to advocate for a different approach; the use of an EVM-based solution (Ethereum Virtual Machine) to handle smart contracts on the XRP Ledger. This decision was met with consternation by the Xaman team that had worked with them for several years to advocate for the use of hooks.
 
You can read more about the 'business politics' part of this topic here:
 
So how do Xahau fans view the relationship between XRP and XAH?
 
The Xahau team - and many of its community members - advocate for the use of a 'dual-chain' solution to implement smart contracts. This can be accomplished by the use of 'listener' software, along with native Xahau hooks.
 
A proof of concept, developed by Denis Angell, has demonstrated that bi-lateral communication can work with a simple approach.
 
From an economic standpoint, every chain that has its own digital asset is a competitor; but the simple way to think about Xahau, is that a 'bunch of XRP geeks' decided to implement smart contracts on their own version of the XRP Ledger.
 
The team emphasized transparency along the way, and initially received support from the primary XRP stakeholder, Ripple. They published Xahau as open-source code that could, in theory, be back-engineered and integrated with the XRP Ledger. You can clearly observe the team's idealistic mindset in early marketing mistakes, where they named their digital asset 'XRP Plus' in an effort to emphasize the way that they viewed their creation. While this resulted in confusion - and even suspicion - in its early days, the team quickly pivoted, and named their digital asset 'XAH', which became its ticker symbol.
 
Synergy effects between the two camps speak to a genuine camaraderie, with many Xahau developers being open and willing to help with changes to the core XRP Ledger protocol. You can find many examples of this open dialogue on the 'X' platform.
 
How To Purchase XAH
 
If you wish to speculate by buying XAH directly, it is available in a variety of convenient locations, depending on where you are located. If you're in a country that is supported by Bitrue, you can directly purchase or trade XAH by using that exchange.
 
On January 20th, 2025, Bitmart announced that it supports trading of XAH for customers in their list of supported countries; And in late March, another major exchange announced that they would be supporting XAH trading pairs: Coinex.
 
If you're located in the United States, you can purchase XAH directly from a vendor known as 'C14'. The xApp for C14 is located in the Xaman wallet.
 
XRP Ledger geeks can also purchase XAH IOUs on the XRPL Dex and then convert them to 'real' XAH using a Gatehub bridge. This is available in countries that Gatehub supports.
 
Which XAH Accounts Should I Follow?
 
On the 'X' platform, there exists two major community groups for XAH fans:
In addition to the Xahau notables I've already mentioned in this article, my advice is to take a look at who is posting in the above two communities. There are many impressive leaders and entrepreneurs included. You should be able to find multiple 'X' accounts that reflect your interests.
 
Xahau Development Roadmap
 
Xahau leaders have published a roadmap for 2025 that lists their various goals for the ecosystem:
 
To read a detailed explanation for each item, refer to this: Xahau Roadmap Super Thread
 
One of the most incredible waypoints listed is 'JavaScript Hooks Implementation.' 🤯
JavaScript!
 
With the 'JavaScript Hooks Implementation', Xahau is making history; it will enable anybody that knows JavaScript to easily create and install a smart contract. While networks like Ethereum are impressive early movers, they require developers to learn a new language and syntax.
 
Xahau will soon open 'crypto smart contracts' to a group of developers that number in the tens of millions.
 
Project L-10K
 
Project L-10K is one of the most important items in the pipeline. L-10K refers to the effort to boost the throughput of Xahau consensus to over 10,000 transactions per ledger! This will benefit hosted projects such as Evernode, and future issued assets. Heading up the effort is Richard Holland, who provided a progress update to the community in late May of 2025:
 
To learn more about this ambitious effort, you can watch his full presentation here:
The Future Of Defi And Payments
 
Once you've seen the extensive list of use cases that XAH easily handles, it's truly inspiring. Xahau is everything that you love about XRP, plus a long list of more things to love. ❤️
 
Be an early adopter of XAH and the Xahau network! Join the community groups listed and follow the accounts that seem to reflect your own interest - speculator, developer, or crypto fan. You have a place in our community, no matter what your background or interests are. Welcome to the future of crypto Defi and Payments. 
 
Sources:
 
 
NOTE: Payment channels for IOUs is currently in amendment status for the XRP Ledger, authored by Denis Angel here:
 
 

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