Symbol is designed for hybrid blockchain solutions. Hybrid gives enterprise users the best of public and private chain configurations in one system. Find out why it’s better to have the best of both worlds.
Hybrid offers all the benefits of public and private chains: low cost, speed, privacy and security
Hybrid blockchains represent an amazing combination of benefits. And now it’s never been safer or easier to create one.
Symbol is the best hybrid chain technology to date
Symbol is purpose-built for enterprise hybrid systems. Assets created on private Symbol chains are natively compatible with the Symbol open-source decentralized public chain. That’s a remarkable advantage for hybrid systems, and no blockchain competitor can match it.
Symbol blockchain represents a new era of hybrid, different from the old ways of building public/private solutions.
Doing hybrid the old way requires external mechanisms
Traditionally, public and private chains use quite different protocols. That’s because public chains must be highly resistant to attack and they must offer incentives to miners or other open node operators. Public chain architecture focuses on high security, trading off disadvantages like lower speed and higher transaction costs. On the other hand, private-focused blockchains make the opposite tradeoff; they have high speed and low cost, but less security. They usually lack node rewards since there’s no need for miners. Interaction between public and private blockchain networks traditionally requires an intermediary layer or specialized contracts. This adds complexity, cost, testing time, and vulnerability to bugs and attacks.
Symbol is unmatched in hybrid
Symbol is designed for compatibility. There are no intermediaries between public and private Symbol chains. Hybrid compatibility is built in and simple to configure. Incidentally, this highly compatible API-driven structure also allows for cross-chain swaps with other networks like Bitcoin and Ethereum. This means you’ll be able create assets on your hybrid system that can trade and interact with assets on those networks.
Hybrid the new way with Symbol
With a private chain, your company can secure its own transactions on the back end or have nonpublic interactions with business partners. With a public chain, your company can share information about products and do business with customers using digital wallets on an open network. A hybrid chain solution built on Symbol lets you do all of these at once. For example, you can have a customer order a product with a digital wallet on the public chain, then execute a private shipping contract with a supplier on your private chain, then again use the public chain to notify the customer of the product’s location on their digital wallet.
Transaction cost advantages of Symbol hybrid
A decentralized blockchain depends on transaction fees to keep it running. A company using a public chain for their business data will end up with very high costs in transaction fees, making some business models nonviable. Further, market volatility of public cryptocurrency tokens come with price risks. In a hybrid chain, the company runs its own nodes on private servers so there’s no cost per transaction and the coin price only impacts transactions on the public chain. You choose which transactions you want to pay for.
Speed advantages of Symbol hybrid
You’ve probably seen the problems that arise when the public Bitcoin or Ethereum networks become congested. Users are forced to make an unwanted choice between high fees and slow confirmation times. This kind of speed volatility can make viable business models unpredictable. With a hybrid system, your company can put the most critical business functions on your private chain, registering only what’s needed on the public chain. When a blockchain is configured as a private chain it becomes much faster and the network isn’t subject to the same congestion issues. Public chains include features designed to resist attacks of many kinds, requiring more processing steps. A private chain has less exposure to constant attacks, reducing the need for these features and increasing speed.
Development and privacy advantages of Symbol hybrid
Apps on the private blockchain side of hybrid are easier to develop and don’t have the same kinds of security risks as those in public smart contracts. Developers can use familiar languages to create any business logic needed. Further, data on a private blockchain can remain completely inside a company firewall. Account data and transactions are accessible only to those who need them.
Transparency and tracking advantages of Symbol hybrid
Hybrid blockchains are useful for internal auditing. All blockchains create timestamped, user-signed records of every transaction. Reporting can be automated and verified with scripts. It’s also straightforward to create a hybrid blockchain that automates internal company accounting. Hybrid blockchain networks are also useful for regulated industries like financial services and healthcare data. In these industries regulations don’t allow free transfer of regulated assets or data. A hybrid blockchain system allows regulated data to remain only on approved accounts or company servers with automated compliance and 100% transparency.
Asset and token advantages of Symbol hybrid
Public chain access is needed any time your system or its assets need to interact with a third party such as an exchange or its users. If your network’s tokens need to interact with a larger marketplace or public users, you’ll be using the public half of your hybrid system. On the public chain anyone can verify ownership and identity of assets. For example, a smart TV can confirm its identity to payment service providers on the public blockchain.
Security and resiliency advantages of Symbol hybrid
Hybrid blockchain systems have all the proven security and stability advantages of blockchain tech. With many nodes, the system will have little to no downtime, even during power outages and hardware failures. As long as one node remains operational, the system can’t crash. There is no special maintenance needed. This is potentially a big efficiency and cost savings over other redundancy and backup solutions. Blockchains are simple, fault-resistant, and run on a wide variety of hardware.
Try it for yourself
The Symbol public TestNet is a great place to try your ideas. Check out the developer documentation to see how it works. Visit the NEM community to ask questions and dig deeper into what you can do with Symbol hybrid blockchain.