Before we dive further in to what the different types/kinds of blockchains networks are, we should address the question/query of what block chain technology is first.
Blockchain technology we can defined as “an open, distributed ledger technology that can record transactions between two parties efficiently (Powerfully) and in a verifiable (provable) and long-lasting manner.
The blockchain networks are of four basic types: public blockchains, private blockchains, hybrid blockchains, and consortium blockchains. Each platform has its own advantages, disadvantages and suitable applications.
Although the block chain technology powering projects is the same, the target consumers of the various blockchain types can differ. Public blockchains emphasis on the public as end-users, on the other hand private blockchains are intended exclusively at invitation users and their networks.
Public blockchain is the first kind of block chain technology. Here, crypto-monetary technology, was invented and popularised. It eliminates the centralization disadvantages, including reduced safety and transparency. Instead of disclosing information across a peer-to- peer network, DLT doesn’t save information in any place. It requires some way in which data authenticity can be verified. This method is a consensus algorithm in order to establish agreement on the present state of the leader by participants in the blockchain. Two common consensus methodologies are proof of work (PoW) and proof of involvement (PoS).
Public blockchain is non-restrictive and unauthorised, and anyone with internet access can join up for an authorised node on a blockchain network. This user may access and carry out current and previous records and the sophisticated calculations necessary to verify transactions and add them to the directory. The network cannot change a valid record or transaction and anybody may check, uncover faults or offer changes, as source code is usually open source.
Mining and exchange of cryptocurrencies like Bitcoin are the most typical case for public blockchains. It can however also be used to create a record with an auditable custody chain, such as an electronic notary on affidavits and public ownership documents.
This form of blockchain is appropriate for organisations, such as social support groups or non-governmental organisations, which are founded on transparency and confidence. Private companies will probably wish to stay clear, given the public character of the network.
A network blockchain which works or is under the control of one single entity in a restricted environment like a shut down network is a private blockchain. While it functions as a public blockchain network, using peer-to-peer connections and decentralisation, it’s significantly smaller in scale in this sort of blockchain. They are also called as blockchains or company blockchains.
The velocity of private blockchains makes them suitable if the blockchain has to be cryptographically secure yet the controlling body does not want public access to information.
The supply chain, asset ownership and internal voting are some scenarios of application for private blockchain.
Hybrid blockchain, a kind of blockchain technology combining private and public blockchain aspects. It enables enterprises to establish a private authority system together with a public permission-free system that enables them to manage who has access to specific information kept in the blockchain and what data is publicly released.
In general, hybrid blockchain transactions and data are not published, but can be validated when necessary, for as by enabling access via a smart agreement. Confidential data is maintained within the network but can still be verified. Although the hybrid blockchain is owned by a private organisation, it cannot edit transactions.
If a user connects to a blockchain hybrid, they have full network access. Unless they enter into a transaction, the user’s identity is protected from other users. Then the opposite side has its identity revealed.
Blockchain Hybrid has a number of significant uses, including property. Companies can run systems secretly using a hybrid blockchain, although they can present certain information for the general population, such as listings. Retail may potentially optimise its procedures with hybrid blockchains and it can also be used in highly regulated areas such as financial services.
The 4th blockchain type, consortium blockchain, also known as a federated blockchain, has private and public blockchain capabilities and is similar to a hybrid blockchain. But this is different because a decentralised network is collaborated by numerous organisational members. A blockchain consortium is basically a private blockchain with limited access to a specific group, minimising the hazards of only one company controlling the network on a private blockchain.
The mechanisms of consensus are regulated by predefined nodes in the consortium blockchain. It has a node validator to initiate, accept and validate transactions. Member nodes can receive transactions or initiate them.
For this form of blockchain, banking and payments are two purposes. Different banks can band together and establish a consortium to decide which transactions are validated. A comparable paradigm as organisations that seek to track food may be created by research groups. It is useful for supply chain applications, especially food and medicine.
The leased proof of interest allows users, for example, to earn money from crypto mining without having to mine their own node. Evidence of importance assigns importance to each user, both in terms of balance and transactions.
Ultimately, the block chain technology is getting more popular and receives backing from companies quickly. Each of these blockchain kinds has a possible use that enhances trust and transparency and provides a better transaction record.
Also Read: A brief description of Blockchain technology
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