What Is Blockchain? Why Do We Need Different Blockchain

What is Blockchain?

The digital ledger is a record of transactions that records information in a way that is difficult or impossible for hackers to alter, hack or cheat the system. The log is distributed throughout the entire Different Blockchain network, with each block containing multiple transactions. Each time a transaction is made, it is added to the ledger of each participant.

Blockchain stores information in blocks, which are groups of blocks. These blocks are connected in a continuous line to create a chain-like structure. It is also known as Blockchain.

Different types of Blockchain

Let’s take a closer look at each type of blockchain technology.

Public Blockchain

Public blockchains are intended to be non-restrictive, completely decentralized and permission-less distributed ledger systems.

They enable anyone to become a part the blockchain network and can participate as miners, developers or users.

To become an authorized node on a blockchain platform, anyone can sign up. Transactions made with public blockchains are transparent. Anyone can view and verify current and historical transactions as well as verify them or perform proof-of-work.

Although public blockchains are used primarily for exchanging and mining cryptocurrencies, they can also be extremely censorship-resistant as it is available to all.

There are several public blockchains that can be used, including Ethereum, bitcoins, and litecoin. Public blockchains are generally secure. It can also be dangerous if security protocols and methods aren’t followed.

Private Blockchain

Private blockchains are blockchains that require permission to operate in closed networks. Private blockchains, therefore, are more centralized.

Private blockchain technology is used by many enterprises that want to share and collaborate but don’t want their confidential business data to be visible on public blockchains. These are organisations where only a few members participate in a blockchain network.

The entity running the chain controls the security, authorizations and permissions. They may also have access tokens.

The public blockchain technology is used primarily for identifying digital IDs, verifying asset ownership, voting and other tasks.

Multichain and hyper-leadger projects Corda, Sawtooth, and Fabric are some examples of private blockchains.

Permissioned blockchains are also known as public blockchains. They have restricted networks and are therefore called permissioned.

Consortium Blockchain

A consortium blockchain can be considered semi-decentralized because it is managed by multiple organizations and not one entity.

This is in direct contradiction to a private Blockchain governed by one entity and not a group.

This collaborative model allows more than one entity the opportunity to compete with each other, exchange information or do mining.

Blockchains that are part of a consortium can work more efficiently. They are often used by supply chains, banks, and government agencies.

Examples of consortium blockchains include R3, Quorum, and others.

Hybrid Blockchain

Hybrid blockchain is, as the name implies, a mixture of the public and private blockchains.

It makes use of the best features of both types, namely the privacy benefits of private and public blockchains.

Users can decide what data they wish to make public or transparent, and who has access to the information stored in the network.

The flexibility of the hybrid blockchain system is what makes it unique. It allows users to have complete control over their data as well as access control.

The hybrid blockchain network is more secure and transparent because it combines the hash power of both the private and public blockchain networks.

Examples of hybrid blockchain include Dragonchain and IBM Food Trust.

What is the point of different blockchain technology?

Let’s now discuss the importance of blockchain in your business.

Blockchain technology has many benefits and uses, but the primary use case is to transact or exchange information using the bitcoin protocol.

Bitcoin is a digital currency and a public blockchain network. Anyone can become a node to trade bitcoins and be a part of the network.

A private blockchain network, for example, is a regional network that allows authorized members to access confidential information. This closed network is secure and cannot be accessed by anyone else.

These are just a few examples of how different blockchain networks can be used depending on the needs and problem statements of organizations.

We hope that today’s article will assist you in choosing the right blockchain technology for your company.