Hybrid versus Sidechains Blockchain

Purpose and Application: Hybrid blockchains are perfect for companies that want both privacy and transparency because they combine the greatest features of public and private blockchains. However, by offloading transactions from the main chain, sidechains hope to improve flexibility and scalability.

Structure and Operation: Hybrid blockchains have a single structure that mixes private and public features, whereas sidechains are entirely distinct blockchains linked to the main chain by a two-way peg.

Access and Control: Hybrid blockchains provide a regulated environment by allowing access to specific areas of the blockchain to be limited. Because their security and access controls are separate from those of the main chain, sidechains are typically more transparent.

Interoperability: Both models encourage interoperability, but in different ways. The goal of hybrid blockchains is to facilitate communication between the public and private sectors within of a single blockchain ecosystem. Sidechains increase the capabilities of the ecosystem by facilitating interoperability across many blockchains without putting undue strain on the main chain.

Use Cases: In the financial, medical, and government sectors—where compliance and privacy are crucial but some degree of openness is also required—hybrid blockchains are frequently employed. Applications needing high throughput, testing new features, or certain use cases that are impractical on the main chain because of scalability or governance concerns are more likely to use sidechains.