The future is HYBRID Blockchain!!

What is Hybrid Blockchain?

A hybrid blockchain is a combination of both public and private blockchains that maintains the characteristics of both. It offers the benefits of transparency and security of public blockchains and the control and privacy of private blockchains. This combination allows organizations to balance the need for transparency and data sharing while keeping sensitive data secure.

Why Hybrid Blockchain for Enterprises & Governments?

1.    Flexibility: Hybrid blockchains offer the flexibility to choose between a public or private network depending on the use case, allowing enterprises to balance transparency and privacy.

2.    Improved Security and Privacy: Enterprises can maintain control over sensitive data and transactions by keeping them on a private blockchain, while also sharing relevant information on a public blockchain for transparency.

3.    Scalability: Hybrid blockchain allows for customizing the size and speed of the network, making it easier to manage large volumes of transactions.

4.    Interoperability: A hybrid blockchain solution can connect multiple private and public blockchain networks, enabling information to be shared and transactions to be processed across multiple platforms.

5.    Compliance/Regulations: By having a combination of public and private blockchains, hybrid solutions can provide the transparency required for regulatory compliance while also maintaining the privacy of sensitive information.

Most prominent Use Cases :

1.    Supply Chain Management: Using a hybrid blockchain solution to track the movement of goods, from production to delivery, can increase transparency and efficiency in the supply chain process.

2.    Healthcare: A hybrid blockchain solution can be used to securely store and share medical records while maintaining patient privacy.

3.    Government: Governments can use a hybrid blockchain solution to securely manage sensitive information, such as voting records, while also providing transparency in their decision-making processes.

4.    Finance: A hybrid blockchain solution can be used to securely process and settle financial transactions, while also providing transparency for regulatory compliance.

5.    Real Estate: A hybrid blockchain solution can be used to securely manage property ownership records and track transactions, while also providing transparency for buyers, sellers, and government agencies.

Case for Hybrid Blockchain

A private blockchain network setup that integrates or interoperates with a public blockchain network will provide the following benefits:

• Organizations can leverage private blockchains’ salient features by leveraging smart contracts, high performance, and complete auditability, while proving transactions on the public blockchain for increased transparency and verifiability.
• Enterprises will not need node hosting for each stakeholder; hybrids only need a minimum viable deployment of a private blockchain network comprising only a few nodes, ensuring the cost of ownership is low.
• Not all transactions occurring on the private blockchain need to be recorded on the public blockchain. Stakeholders can agree to maintain aggregated proof and thus reduce the fees required to get the transaction validated.
• Enterprises can meet regulatory compliance requirements because no personal or confidential data will be maintained on the public blockchain.
• Private consortiums primarily cater to B2B transactions, so hybrid blockchains open the possibility of decentralized solutions involving B2C (business to customer) use cases, such as ecommerce.
• If all private consortiums integrate with the same public blockchain, a mechanism to form a “Network of Networks” is provided, where the public blockchain network becomes a global medium relaying transactions and assets between the private blockchain networks.

https://www.wipro.com/blockchain/is-hybrid-blockchain-the-future/

"Interoperability is a critical requirement for widespread deployment of blockchain-based solutions," said Daniela Barbosa, Executive Director, of Hyperledger Foundation, and General Manager of Blockchain, Healthcare and Identity at the Linux Foundation. "The Hyperledger community has been developing multiple DLT platforms as well as tools to enable a multichain ecosystem for years. As a member of Hyperledger Foundation, CasperLabs will help accelerate that work by contributing valuable expertise and resources focused on unlocking new hybrid blockchain applications."

"Monetizing enterprise digital assets is the key to scaling enterprise blockchain adoption. Interoperability between permissioned and public chains can lead to great ecosystem reach and better access to liquidity while preserving the privacy and control over their enterprise assets," said Shyam Nagarajan, Executive Partner, Web 3.0 and Sustainability at IBM. "IBM is committed to building hybrid networks leveraging the strengths of permissioned and public chains to help enterprises launch new business models."

Over the last 5 years, Enterprises have leveraged permissioned/private blockchain for enterprise use cases which has led to digitization of assets that are used for value exchange among the permissioned participants. Public chains bring a larger ecosystem and liquidity that can be valuable to the monetization of the digital assets created in the permissioned/ private blockchain networks. Watch here > https://www.youtube.com/watch?v=NZcZRy9O5Hk&feature=youtu.be

- IBM, Casper Labs presented in Hyperledger Global forum 2022.

The future of blockchain technology is likely to involve a hybrid approach, utilizing both public and private blockchain networks. This approach allows for the benefits of both types of networks to be leveraged, such as the transparency and security of public networks and the scalability and privacy of private networks. A hybrid blockchain can be used to create a more secure and efficient system that can cater to the needs of different industries and use cases. This approach will be crucial in the widespread adoption of blockchain technology in the future.

Reference:

https://www.wipro.com/blockchain/is-hybrid-blockchain-the-future/

https://www.zeeve.io/blog/guide-to-hybrid-blockchain-benefits-and-use-cases/

https://blogs.oracle.com/blockchain/post/blockchain-interoperability-is-the-focus-of-december-obp-update

https://www.linkedin.com/pulse/future-blockchain-hybrid-andy-martin/

https://www.ibm.com/blogs/blockchain/2022/05/hybrid-networks-ibm-blockchain-services-casperlabs-davos-2022/

https://www.businesswire.com/news/home/20220912005384/en/

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