Basically blockchain runs in information, the blockchain is ideal for delivering information. Because it provides immediate, shared and completely transparent information stored on an immutable ledger. That can accessed only by permission network members. The blockchains can track orders, payments, accounts production and much more. There are different types of blockchain technologies available
Blockchains decentralised digital ledgers that are tamper evident and resistant. In the beginning they allow users to record transactions in a shared ledger within that group. Blockchain concept was integrated with many other technologies and computer concepts in 2008 to create modern cryptocurrencies.
The first blockchain based cryptocurrency is Bitcoin. It allowed their users to share data publicly so that users can independently verify the validity of transactions. The fundamental goal of blockchain is to let people. Especially for those who don’t trust one another communicate vital data in safe, tamper proof manner.
The four different types of blockchain technologies are Public, Private, Hybrid or Consortium. lets see about these four blockchain technologies in this article in detail.
Public Blockchain
This is where cryptocurrency like Bitcoin originated and help to popularise distributed ledger technology (DLT). It helps to reduce or remove the problems that come with centralisation, including less security and transparency. No any information is stored any place in DLT, instead distributing it across a peer to peer network.
In this public blockchain there is no any restrictions and permission less. Anyone with internet can access and sign in to a blockchain platform to become an authorised node. This user can access past and current records. And conduct mining activities, the complex computations used to verify transactions and add them to the ledger.
Advantages and Disadvantages of Public blockchain
One of the main advantage of Public blockchains is they are completely independent of organisations. So if organisation that started cease to exist the public blockchain will still be able to run. As long the computers connected to it.
Some blockchains encourage users to commit computer power to securing the network by providing a reward. The next main advantage is that public blockchains is the network’s transparency. For the long time the users follow security protocols and methods fastly public blockchains are mostly secure.
Disadvantage of Public blockchain
The small disadvantage of Public blockchain is, the network can be slow, companies cannot restrict access or use. If the hackers gain 51% or more of computing power of public blockchain network, they can alter it.
The most common use case for public blockchains is mining and exchanging cryptocurrencies like bitcoin. It can also be used for creating a fixed record with audit-able chain of custody. This kind of blockchain is ideal for organisations that are built on trust and transparency. Such as social support groups or non governmental organisations.
Private Blockchain
Private Blockchain is a network that works in restrictive environment such as closed network. Or this is under the control of single firm or entity. While operating in public blockchain networks in the sense that it uses peer to peer connections. And decentralisation, but these kind of blockchain is much smaller scale.
Instead of just anyone able to join and provide computing power. Typically private blockchains are operated on small network inside a organisation or company. They are also called as enterprise blockchains or permission-ed blockchains.
You may think that private blockchains are being like a internet, but the public blockchains are more like internet. Because they are size limited, these kind of blockchains are can be very fast. And also provide fast transactions than public blockchains.
Advantages and Disadvantages of Private Blockchain
The controlling organisations sets a security, permission, authorisation and accessibility. If an organisation set up private blockchain network can determine which nodes can view. It also prevents from accessing certain information’s by third parties.
The main disadvantage of private blockchain is some people say they are not true blockchains. But the core philosophy of blockchain is decentralisation. So it is more difficult to achieve full trust in information, because the centralised nodes determine what is valid.
The speed of private blockchains makes them perfect for cases where the blockchain needs to be photographically secure. But the entity controlling dose not want the information to be accessed by the public. The companies can take advantage of blockchain technology when not giving up their competitive advantage to third party. So the trade secret management for auditing is private.
Hybrid blockchain
Hybrid blockchain combines both the elements of private and public blockchain. So when a organizations will use hybrid blockchain if they want both the worlds. It let the organization to set up a private, permission based system alongside a public permission system. Allowing them to control who can access specific data stored in the blockchain,and publicly which data will be opened.
Transactions in hybrid blockchain can be verified when needed. But they are not public, like this allowing access through smart contract. Important information’s is kept inside the network but still verifiable. Even private entity may own hybrid blockchain, but it cannot alter transactions.
Advantages of Hybrid blockchain
Basically the hybrid blockchains works in a closed ecosystem. So the outside hackers cannot mount 51% attack in the network. this is a big advantage of hybrid blockchain. It allows to communicate with third parties but it protects privacy. The transactions in hybrid blockchains are very cheap and fast. And it also offers better scalability than a public blockchain network.
It has many strong use cases including real estate. Companies can use these kind of blockchain to run system privately. But show certain in formations like listings, to the public. Retail can also streamline its process with hybrid blockchain. And highly regulated markets like financial services can also see benefits from using it.
Disadvantage of Hybrid Blockchain
The main disadvantage of this hybrid blockchain is there is no incentive for users to participate. Or contribute to network, and upgrading will also be challenging. This type of blockchain is not completely transparent because information can be shielded.
Consortium blockchain
The last blockchain type is Consortium blockchain, it is also known as federated blockchain. And it is also similar to hybrid blockchain that is it consist both private and public blockchain features. But different in that multiple organisational members collaborate on a decentralised network.
This blockchain is a private blockchain with limited access to a particular group. Eliminating the risk that comes with just one entity controlling the network on a private blockchain. It is more secure, scalable and efficient than a public blockchain network.
This consortium blockchain is less transparent while compared with public blockchain. It can be compromised if a member node is breached, blockchain’s own regulations can impair the network’s functionality.
Uses of Consortium blockchain
In this blockchain banking and payments are two uses. Different banks can band together and form a consortium, deciding which nodes will validate the transactions. Similar models can be created by a research organisations, as can organisations that want to track food.
These are the four main types of blockchain, there is one more block chain to consider. It is consensus algorithms in addition to POW and PoS. Anyone planning to set up a network will also want to consider the other types.
Ultimately blockchain technology is becoming more popular and rapidly getting enterprise support. All these types of blockchains has potential application that can improve trust and create a better record of transactions.
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