A Beginners Guide About The Essential Blockchain Types
From public and private to hybrid variants, explore the essential types of blockchains that you should be familiar with.
Blockchain has recently gained a lot of popularity among various business sectors and this has led to a high demand for the adaptation of this technology. However, in the process of adapting to Blockchain tech, each and every business has different and unique requirements that demand types of Blockchain. In this blog, you can learn about such major types of Blockchain networks.
Public Blockchains: These are open and permissionless networks that allow anyone to join, participate, and interact with the blockchain. They are decentralized and maintained by a distributed network of nodes that reach consensus on the validity of transactions and the state of the ledger. Public blockchains are transparent, secure, and immutable, making them suitable for applications where trust and openness are essential. Examples of public blockchains include Bitcoin (BTC) and Ethereum (ETH).
Private Blockchains: It also known as permissioned blockchains, are restricted networks where only authorized participants can join and contribute to the consensus process. These blockchains are often used within organizations, consortia, or specific user groups where privacy, control, and scalability are important. Private blockchains offer more control over the network, but they may sacrifice some aspects of decentralization compared to public blockchains.
Hybrid Blockchain: This is a combination of public and private blockchains, aiming to leverage the benefits of both types while mitigating their respective drawbacks. It seeks to strike a balance between the openness and transparency of public blockchains and the controlled access and scalability of private blockchains. In a hybrid blockchain, certain functionalities are kept public, allowing anyone to participate in the network, verify transactions, and view the ledger's content. Simultaneously, other parts of the blockchain are restricted and accessible only to authorized participants or nodes.
Consortium Blockchains: These are a hybrid model that combines features of both public and private blockchains. In a consortium blockchain, a group of pre-selected participants, often organizations or businesses, form a collaborative network to validate transactions collectively and maintain the ledger. Consortium blockchains aim to strike a balance between the openness of public blockchains and the controlled access of private blockchains. They are useful in scenarios where multiple parties need to work together, and trust is established among the participants.
Apart from these, there are several pros and cons lies within these above mentioned blockchains. Hence, if you are an entrepreneur planning to make your debut in the blockchain world, then get assistance from a professional Blockchain development company like Bitdeal.
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