Different Types of Blockchain: Let’s Dig In!
Bitcoin has introduced the world to a new technology that has proved helpful in all spheres of life. Blockchain Technology has the solution to almost all practical problems of human lives. As developers have learned of the various uses of Blockchain, they are constantly in the pursuit of upgrading their knowledge.
Today, a Blockchain developer is of utmost importance to any company. They are supposed to solve all technical problems in a company by looking beyond the given options. Blockchain Technology has the answer to all questions asked in the 21st century and forward. There are four types of Blockchain, Public, Private, Consortium, and Hybrid. Let us see more about them.
- Public Blockchain
The first Blockchain to be used is a Public Blockchain. The Bitcoin Blockchain was the pioneer in this field. It has opened up avenues for other possibilities. A Public Blockchain does not require the users to seek permission before joining. It is open to all. It maintains a set of specific regulations. It is decentralized, which ensures that no single authority runs the show. Everyone has equal access to enter data, approve or disapprove of a transaction, and validate blocks. Their approval or disapproval is duly noted and is given just as much weightage as to the others.
As of now, Public Blockchains have only been used to keep track of transactions of Cryptocurrencies. Following Bitcoin, Ethereum, and other Cryptocurrencies have joined the Crypto Market. Blockchain makes the entire procedure very easy and convenient. Since it works as a public ledger, it allows every user to have an equal say. Trading platforms like bitcoin profit software mentions the workings of such Blockchains in their instructions.
Everyone on the Blockchain remains equally accountable to the system. It is entirely upon the users that the method depends on. The tight-knit structure of the users makes it impossible for the blocks to be altered or overwritten.
- Private Blockchain
A Private Blockchain refers to a chain of blocks that not everyone can access. Since it is not open to all, it has a central authority who runs it. Usually, this Blockchain structure exists within an industry or organization, where the leading authorities have it under their control. It makes the data accessible to all employees who are part of the Blockchain. It also allows the employees to approve or disapprove of the data in the system, depending on their expertise. It keeps the system transparent within the organization, where everyone else is aware of the data someone else is entering.
Both the Blockchain structures have their shares of disadvantages. While Private Blockchains are more susceptible to fraudulence, Public Blockchains take longer to get data verified due to many users working on it. To solve these issues, developers have come up with two new Blockchain structures: the Consortium Blockchain and the Hybrid Blockchain.
- Consortium Blockchain
The consortium is the Blockchain structure that aims at eliminating the problems of both the Private and Public Blockchains. In this Blockchain, the authority does not lie on a single person or organization but a group of organizations. This way, it is easier to admit more people into the Blockchain.
Many financial enterprises with various branches use this Blockchain to work more efficiently. Blockchain developers have had to upgrade their knowledge base to come up with such a structure.
- Hybrid Blockchain
Hybrid Blockchain is a Private Blockchain that lets another Public Blockchain regulate its workings. The IBM Food Trust works similarly. The data of the company that is entirely private remains within the purview of the company officials. There are certain factors which the general public can quickly validate. Such doors are open for the public Blockchain to take part in.
Blockchain Technology makes the system quicker, more efficient, and most accurate. The day when every other field of work will be impossible without Blockchain is not far from true.