Everything you’ve ever wanted to know about Blockchain Types:
We are now very much familiar with blockchain and its working. In this blog, we are concentrating on the basic types of Blockchain. So we all know that Blockchain is a public ledger which is distributed and decentralized. Well coming to the types of Blockchain, there are basically three types of Blockchain:
1) Public Blockchain
2) Private Blockchain
3) Consortium or Federated Blockchain
This article will help you to understand the difference between types of Blockchain which are mentioned above.
We will have a look at each in detail and also focus on how they are different from each other.
1) Public Blockchain
Public Blockchain is simply, a public which means its basically for the public, by the public, and of the public. Anyone on earth, who is willing to read, write or join a public blockchain, can do so. No access restriction is observed here. A transaction is completely transparent, but at the same time, they are anonymous. An obvious question which comes to our mind is that if no one is in charge here then how decisions are being taken? That’s where decentralized consensus mechanism such as proof of work and proof of stake etc comes into the picture.
Examples of Public blockchain include Bitcoin, Ethereum, Monero, Dash, Litecoin, etc.
2) Private Blockchain
A private blockchain as the name suggests is private to an individual or to an organization. A private blockchain is completely permissioned. To join the network, one has to take permission from the network administrators. Access rights are different for everyone. Some have restricted access and some have full access, it depends on the designation of the user. Private blockchain is similar to centralized system, the only difference is, we inherit blockchain advantages. All the transactions and their verifications are carried out internally, because of which there is a good chance of security violation in the system, which was avoided in public blockchain.
Examples of Private Blockchain include database management, auditing, Bank chain, Monax, and Multichain. etc.
3) Consortium or Federated Blockchain
Consortium or Federated Blockchain is an amalgamation of the public and private blockchain. In this type, the power does not reside with a single entity. It runs under the leadership of a group of entities. In public blockchain, any person having internet connection can participate in the process of transaction verification, which is not possible in the Consortium network. Consortium Blockchains are quick and provides higher scalability and transaction security. We can see that Consortium Blockchains are often used in the banking sector. The consensus mechanism is managed by a pre-selected set of nodes. These nodes can be from all the entities forming the consortium.
Examples of Consortium or Federated Blockchain include R3 (Banking), EWF (Energy), B3i (Insurance), Corda.
The table shown below will help you to understand how Public Blockchain, a Private Blockchain and Consortium Blockchain are different from each other.
Why we need them?
Whenever we require privacy and control for our system than private and consortium blockchain can be a decent option to go with. On the other hand when we require an open system with censorship resistance then we must go for public blockchain in that case. Hence different organizations are using several use cases of blockchain technology according to their purpose.
Conclusion
Coming to the conclusion, we saw Blockchain types & how they are different from each other. Along with this, we also saw how they have their significant usage according to their needs. Each blockchain type has its own set of pros and cons. And deciding on which type of blockchain is best suited to your business company/business rely on your business/company requirement. The future will only tell how far these blockchains go and who will be the vanquisher.
CLICK HERE to submit your press release to MyPR.co.za.
Source: MyPR
Submit your own Press Release or get free content for your publication.
Video – How to post your Press Release on MyPR:
My Press Release (MyPR) provides free South African targeted content and press releases for on and off line publishers and media. Registering on MyPR enables public relations companies and practitioners to post articles under their own author name. Public Relations Companies and practitioners, event organisers, sports and political writers use MyPR as a distribution mechanism for their press releases, content, images and news. A forever free subscription allows publishers and media free access to all press releases, content and images on MyPR.
This press release is courtesy of WP Robot plugin – CLICK HERE to learn more about WP Robot for WordPress – a massive time and money saver.
