Centralized Exchanges And Their Blockchains- Battle Of Hashings

Term Structure
4 min readJun 7, 2024


As businesses increasingly adapt blockchain technology to their unique needs, it is clear that no single approach fits all. Different blockchain types—public, private, consortium, and hybrid—offer distinct advantages and are tailored for specific applications. In this article, we will discuss these four types of blockchain and how centralized exchanges tap into this sector.

Understanding Different Blockchain Types

As businesses adapt blockchain to their unique needs, it's clear that no single approach fits all. The section below will examine the four main types of blockchain: public, private, consortium, and hybrid. Each type has its own advantages, drawbacks, and ideal applications. Understanding these distinctions highlights blockchain's growing importance and versatility in transforming digital transactions.

1. Public Blockchain

Public blockchains are open, permissionless distributed ledgers that epitomize decentralization by granting equal access to all participants. Anyone with internet access can join as a node, contributing to transaction verification and mining.


  • High trust and security through the proof-of-work mechanism
  • Extensive network size enhances security
  • Unmatched transparency


  • Low transaction processing speeds and scalability issues
  • High energy consumption with environmental concerns

Use Cases:

  • Transparent voting systems
  • Fundraising platforms
  • Maintaining auditable financial records

2. Private Blockchain

Private blockchains operate in closed environments or under single-entity control, offering a more controlled setting than public blockchains.


  • Faster transaction verifications and better scalability
  • Enhanced privacy and data control


  • Trust-building issues due to fewer participants
  • Concerns about data validity and centralized control

Use Cases:

  • Managing internal processes.
  • Supply chain management
  • Asset tracking
  • Internal voting mechanisms in finance

3. Hybrid Blockchain

Hybrid blockchains combine features of private and public blockchains, offering a flexible framework tailored to specific needs.


  • Enhanced security and privacy within a closed ecosystem
  • Facilitates interactions with third parties
  • Cost-effective and scalable


  • Limited transparency
  • Challenges in system upgrades

Use Cases:

  • Real estate
  • Retail
  • Regulated markets
  • Balancing transparency and privacy in finance

4. Consortium Blockchain

Consortium blockchains blend elements of private and public blockchains, involving multiple organizations in decentralized governance.


  • Enhanced security, scalability, and efficiency compared to public networks
  • Controlled access and balanced power dynamics


  • Potential transparency issues
  • Regulatory challenges

Use Cases:

  • Banking
  • Research data sharing
  • Supply chain management in finance

List Of Exchanges and Their Blockchain


Binance, a cryptocurrency exchange, and its native token BNB, were both launched in 2017. Initially an ERC-20 token on Ethereum, BNB transitioned to Binance Chain by 2019 and played a crucial role in establishing Binance Smart Chain (BSC), which was launched in September 2020.

BNB's success on BSC led Binance to position it as the token for a broader ecosystem, now known as the BNB Chain. Binance, known for low transaction fees and high liquidity, offers discounts for transactions using BNB. This showcases Binance's commitment to innovation and decentralization.


OKX, founded by Star Xu in 2017, is a top global cryptocurrency spot and derivatives exchange, serving over 50 million users worldwide. OKX operates its blockchain, X Layer, and the OKB token.

X Layer is a decentralized Ethereum Layer 2 network, using advanced cryptographic zero-knowledge proofs for secure, near-instant transaction finality. This technology, known as ZK-EVM, combines zero-knowledge proofs for scalable transaction validity with the Ethereum Virtual Machine's smart contract execution capabilities to enhance Ethereum’s overall performance.


Base is a blockchain developed by Coinbase to improve Ethereum's accessibility and efficiency. As an L2 solution, Base processes transactions faster and at a lower cost. Since it’s fully compatible with the Ethereum Virtual Machine (EVM), Base simplifies application deployment for developers and allows seamless asset transfers between Ethereum, Coinbase, other EVM-compatible chains, and the Base network.

Special Mention: Term Structures’ zkTrue-up

Term Structure is a non-custodial, peer-to-peer fixed-income protocol focusing on LRTs and LSTs. Users can use their LSTs and LRTs as collateral to borrow tokens at fixed rates and fixed terms and earn points and staking rewards in the primary markets, where the auction mechanism facilitates borrowing and lending. Meanwhile, the secondary markets support the trading of these fixed-income tokens through a real-time order book to enhance liquidity.

Thanks to zkTrue-up, a customized ZK Rollup that maintains data availability, there are no gas fees when users place and cancel orders. Moreover, users can withdraw their assets at any time.


Different blockchain types—public, private, consortium, and hybrid—offer tailored solutions to meet diverse business needs. This versatility enhances efficiency, security, and transparency in digital transactions. Major exchanges like Binance, OKX, and Coinbase have adopted specific blockchain strategies, while innovative solutions like Term Structures' zkTrue-up continue to emerge. By leveraging various forms of blockchain technology, businesses can drive growth and innovation across multiple sectors. This further underscores blockchain's transformative potential and its crucial role in the evolving digital landscape.



Term Structure

The Term Structure team is dedicated to creating a term structure of interest rates as a fundamental infrastructure in DeFi.