What Are The Different Types Of Blockchain Technology
In the previous article we got the basic guide of blockchain, if you haven’t read the article then get clear information about what is blockchain technology. So, in this article, we are going to discuss different types of blockchain.
Blockchain technology mainly consists of four different types.
2. Private Blockchain
3. Consortium Blockchain
4. Hybrid Blockchain
A public blockchain is open-source, permissionless, Public blockchain is completely decentralized meaning no single entity or central authority has control of the public blockchain networks.
In this blockchain, there are no restrictions anyone can join and participate in the public blockchain.
Moreover, in the public blockchain, any work happens by consensus algorithms like proof of work and proof of stake.
More importantly, the use of public blockchain is commonly using for mining and exchanging cryptocurrencies. Some of the public blockchains include Bitcoin, Litecoin, Ethereum.
A private blockchain is very restrictive and permissible which works on a closed network. It mainly operates in organizations only selected members have access to participate in this network. Moreover, it has a single entity or central authority to control. The security, authority, and accessibility are under the control of organizations.
These blockchains are commonly using for supply chain management, voting, digital identity, and asset ownership.
A consortium blockchain is defined as a semi-decentralized blockchain as it is managed by a group meaning more than one organization rather than a single entity.
Moreover, only selected nodes or users are given the power to authorize transactions and look after the consensus process.
Notably, this consortium blockchain is mainly using in government organizations and banks.
Hybrid blockchain is the combination of both private and public blockchains. Moreover, it uses the features of both the blockchains which have ‘private’ permissioned networks and ‘public’ permissionless networks.
With a hybrid network, users can control who’s gonna access specific data in the blockchain. Moreover, selected data from the blockchain will be available to the public and some will remain private.
I hope you’ve got the clear concept of different types of blockchain, if you are a company who’s looking forward to implementing blockchain technology then implementation should be based on the type of business.
Finally, what do you think about the different types of blockchain technology? Let us know your point of view on our social handles.