Blockchain has recently gained a lot of popularity, which has led to the high demand for the adaptation of this technology. But the question is – Are all firms adapting Blockchain have the same requirements?
Well, the answer is no! Each firm has different and unique requirements that demand types of Blockchain. Types of Blockchain are different versions of blockchain technology with different characteristics. And in this tutorial, we will explore and understand these different types of Blockchain.
What Is Blockchain?
- A Blockchain is a decentralized database that is shared among computer network nodes.
- Transactional data from numerous sources may be readily collected, integrated, and shared using blockchain cloud services.
- Data is divided into common blocks linked together using cryptographic hashes as unique IDs. Read more brians club.
Types of Blockchain
1. Public Blockchain
- It is a permissionless distributed ledger on which anybody can join and conduct transactions.
- It is a non-restrictive form of the ledger in which each peer has a copy. This also means that anyone with an internet connection can access the public Blockchain.
- This user has access to historical and contemporary records and the ability to perform mining operations.
- These complex computations must be performed to verify transactions and add them to the ledger.
- On the blockchain network, no valid record or transaction may be altered. Because the source code is usually open, anybody can check the transactions, uncover problems, and suggest fixes.
2. Private Blockchain
- A blockchain network operates in a private context, such as a restricted network, or is controlled by a single identity.
- While it has a similar peer-to-peer connection and decentralization to a public blockchain network, this Blockchain is far smaller.
- They are often run on a small network within a firm or organization rather than open to anybody who wants to contribute processing power.
- Permissioned blockchains and business blockchains are two more terms for them.
3. Hybrid Blockchain
- Organizations who expect the best of both worlds use a hybrid blockchain, which combines the features of both private and public blockchains.
- It enables enterprises to construct a private, permission-based system alongside a public, permissionless system, allowing them to choose who has access to certain Blockchain data and what data is made public.
- In a hybrid blockchain, transactions and records are typically not made public, but they can be validated if necessary by granting access via a smart contract.
4. Consortium Blockchain
- In the same way that a hybrid blockchain has both private and public blockchain features, a Consortium blockchain, also known as a federated blockchain, does.
- However, it differs because it involves various organizational members working together on a decentralized network.
- Predetermined nodes control the consensus methods in a consortium blockchain.
- It has a validator node responsible for initiating, receiving, and validating transactions. Transactions can be initiated or received by member nodes.
In this tutorial, you learned about different types of Blockchain, their characteristics, and the advantages and disadvantages of types of blockchain.
Whether you’re an experienced member of this Blockchain Technology or just an aspiring enthusiast who is just starting to explore this industry, then to know more about Blockchain, its underlying technology, and different types of cryptocurrencies enrolling in Simplilearn’s Blockchain Certification Training program helps you with all levels of expertise to adapt and learn more about Blockchain, and its technology.
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