Four Different Types of Blockchain

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Introduction

When a firm creates a blockchain solution to meet its supply chain demands, you should select which type will suit your project. As a result, it is crucial to have a thorough understanding of the available blockchain structures. Not all blockchains are suitable for supply chain information management. This article will explain the main types of blockchains and their relevance.

Blockchain: Meaning

It is a decentralized data ledger that is shared securely. It allows a restricted set of individuals to share data. However, all the transactional data from multiple sources may be readily collected, integrated, and shared through cloud services. Also, you may divide data into shareable blocks that you can link together using cryptographic hashes as unique IDs.

Moreover, blockchain ensures data integrity by providing a single source of truth, reducing data duplication, and enhancing security. The best thing about this technology is that you can not update data without the approval of a quorum of the participants. In this way, fraud and data tampering is avoidable.

Types of BlockChain

There are two types of blockchains; private blockchains and public blockchains. However, there are several alternatives, such as Consortium and Hybrid blockchains. Before we go into the specifics of the various types of blockchains, let’s look at what they have in common. Every blockchain comprises a group of nodes that operate on a peer-to-peer (P2P) network structure. Every node in a network has a copy of the shared ledger, which is regularly updated. Thus, every node can validate transactions, initiate or receive transactions, and construct blocks. Therefore, Blockchain technology is of four kinds, which are as follows:

     ● Public

It is a permissionless, non-restrictive distributed ledger technology. Anyone with an internet connection may sign up for this type of platform to become an authorized node and join the blockchain network. A node or user on this public technology can view current and historical information, validate transactions, or perform proof-of-work for an incoming block. However, the basic application of public blockchains is cryptocurrency mining and exchange. As a result, Bitcoin and Litecoin are the most commonly used public blockchains. So, if you desire to learn more about bitcoin and its related concepts, enrolling in Bitcoin Online Training is the best choice to meet your career goals.

     ● Private

It is a limited or permissible blockchain that operates solely within a closed network. You can use such technology within an organization or company where only a few members participate. However, the governing organization of private blockchain determines the degree of security, authorizations, permissions, and accessibility. They function similarly to public blockchains but have a smaller and more restricted network. Examples of private blockchains are Multichain, Hyperledger projects, etc.

     ● Consortium

It is a semi-decentralized type in which a single entity manages the whole network. This type is the opposite of what we saw in a private blockchain. In this type, more than one organization can operate as a node, exchanging information or mining. However, banks, government agencies, and other organizations use these consortium blockchains. Examples of this type of technology network are R3, Energy Web Foundation, etc.

     ●  Hybrid Blockchain

A hybrid type of technology combines private and public blockchains. It combines the properties of both types of blockchains, allowing for a private permission-based system and a public permission-less one. However, users may manage who has access to which data is stored on the blockchain using a hybrid network. Only a subset of the blockchain’s data or records can be public, while the remainder remains secret on the private network. Moreover, a hybrid blockchain system is adaptable, allowing users to connect a private blockchain to multiple public blockchains. Furthermore, a transaction on a private-hybrid blockchain network gets confirmation within that network.

On the other hand, public blockchains boost hashing and involve additional nodes in the verification process. It improves network security and transparency. An example of a hybrid blockchain network is Dragonchain.

Conclusion

To conclude, we have compiled the four types of blockchain technologies prevailing in the market. All these four types serve different purposes, so it’s up to the user to select the technology as per their requirements. Therefore, to become proficient in these available networks, you can acquire the Blockchain Online Certification in India for a more advanced approach to fulfilling your career goals.

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