Types of Blockchain

Types of Blockchain

There are Four types of Blockchain used in Blockchain industry. Public Blockchain Private Blockchain Hybrid Blockchain Consortium or Federated Blockchain

Types of Blockchain

Public Blockchain:

The best known examples of public Blockchains are Bitcoin and Ethereum. A public blockchain is accessible to any user in the world. All that is needed is a computer and an Internet connection. The public Bitcoin Blockchain consists of the Bitcoin protocol (with a capital B), the bitcoin account unit or token (with a lowercase b) and the blockchain (the database in which transactions are recorded). Bitcoin was the inventor of the Blockchain concept, taking inspiration from other solutions and combining them in such a way that a decentralized system that solved the problem of Double Expenditure could be created. The problem of Double Expenditure, which had been investigated by scientists around the world for more than 30 years, said that in a decentralized system it was impossible to prevent an asset or digital being spent two or more times.In a centralized system avoiding the problem of Double Expenditure is very simple, but in a decentralized system in which all computers have a copy of all transactions (the blockchain) the question of how all nodes agree to define which It is the reality of that database in a decentralized way to reach a consensus and function is a highly complex problem that nobody managed to solve until Bitcoin appeared. Bitcoin solves this problem with mathematics, cryptography and the Bitcoin community (users, miners, exchange houses and developers of the Bitcoin ecosystem).

Private blockchain:

A private Blockchain, unlike a public Blockchain , is not open to the public, but can only be accessed by invitation. Private Blockchains are newer than public Blockchains and can be very different from each other and in some cases it is even questionable that you can talk about Blockchain for some of the solutions that are known in the market. Some of the most famous are Hyperledger (from the Linux Foundation), R3 (a consortium of international banks to develop private blockchain banking solutions) or Ripple (a protocol to facilitate international money transfers).

Hybrid Blockchain:

The Blockchain hybrid is a combination of public and private. In a hybrid Blockchain the participating nodes are invited, but all transactions are public. That means that the nodes participate in the maintenance and security of this blockchain, but that all transactions are visible to users worldwide and that they do not have to know the content of the blockchain, unlike the private blockchains in which Transactions are private too.

Consortium and Federated blockchain:

A federated blockchain in other terms called as consortium blockchain comes with mixed properties from public and private blockchain networks. One can classify the consortium blockchain or the federated blockchain as partially public and partially private. Under the consortium network, the power of authority comes semi- decentralized not residing to a single authority. Often, a federated blockchain is operative under a group and they are responsible to shed restrictions on users’ reading, writing and auditing rights. Under consortium blockchain only trusted nodes are acquainted with the responsibility of executing consensus protocol.

Unlike public blockchain networks, consortium networks don't invite anybody with the internet connection to participate in the network. It again demands permission from network admins. Federated blockchain is mainly applied in the banking sector for its fast speed, supreme scalability, and better transaction privacies. R3, EWF are examples of federated blockchains.

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