The blockchain is a decentralised, distributed and distributed ledger that runs like a virtual machine. There are different types of blockchains which differ in their applications and target audience.
To be successful in the blockchain space, developers need to build up a solid understanding of blockchain technology, and this is where the different types of blockchain come into play. Understanding what each kind of blockchain does will help you understand how various projects can address problems that make sense for a specific type of blockchain.
Public BlockChainPublic blockchain is a non-restricted and non-permissioned distributed ledger technology (DLT) used to record transactions in bitcoin that was developed by Satoshi Nakamoto.
The first type of blockchain technology, public blockchain removes the problems that come with centralization, including less security and transparency.
Public blockchain is a distributed database that allows for the distribution of data across multiple computers. The database is not controlled by any single entity, but instead exists in multiple locations at once.
This makes it more secure and transparent than centralised databases. A public blockchain is also immutable, meaning it cannot be changed after it has been recorded. The entire history of a public blockchain can be viewed by anyone at any time.
Public blockchains can be used for many applications, including financial transactions and record keeping. They are also useful for smart contracts, which are programs that execute when certain conditions are met.
AdvantagesOne of the advantages of public blockchains is that they are completely independent of organisations, so if the organisation that started it ceases to exist the public blockchain will still be able to run, as long as there are computers still connected to it.
DisadvantagesPrivate blockchains can be controlled by the companies that developed them, which means they're normally subjected to legal and regulatory restrictions. Public blockchains, however, are open for anyone to use. If hackers gain 51% or more of the computing power of a public blockchain network, they can unilaterally alter it.
Private Block Chain
blockchain. While it operates like a public blockchain network in the sense that it uses peer-to-peer connections and decentralisation, this type of blockchain is on a much smaller scale. In contrast to public blockchains, which are secure and have members from multiple business units across the globe, private blockchains are for internal use only. They are trusted among specific individuals or organisations within a company or group of companies.
AdvantagesOne of the biggest advantages of private blockchains is that the controlling organisation can set the rules and access levels. For example, an organisation setting up a private blockchain network can determine which nodes can view, add or change data. It can also prevent third parties from accessing certain information.
Public block chains are internet more in number and private block chains are like intranet less in number due to this private block chains are faster and process transactions efficiently than public block chains
DisadvantagesWhile the advantages of private blockchains include user privacy, some self-sovereign identity, and an ability to perform transactions without an intermediary. However, private blockchains aren't true blockchains. One common criticism of private blockchains is the idea that they don't offer true decentralisation because the nodes are central points of authority. While there are benefits associated with this (such as improving privacy), it's not clear how this would affect the data validity or reliability of the blockchain network.
Hybrid BlockChain
Hybrid blockchains combine elements of both public and private blockchain technology. This allows organisations to control who can access specific data stored in the blockchain, what data will be opened up publicly, and whether transactions are visible or remain private.
Hybrid blockchains are ideal for use cases where there is a need to maintain control over certain information, such as financial transactions or sensitive data. Hybrid blockchains allow users to create permissioned networks and limit access to transaction histories or smart contracts.
This is a very powerful feature that allows organisations to tailor their blockchain use cases to fit the needs of their specific industry and business requirements. Hybrid blockchains are more flexible than public and private blockchains. They can be used in a wide variety of applications, including supply chain management, financial services, and digital identity.
AdvantagesHybrid blockchain goes beyond a traditional blockchain ecosystem and combines both public and private blockchains within a closed ecosystem. One of the big advantages of hybrid blockchain is that it protects privacy but allows for communication with third parties. Transactions are cheap and fast, and it offers better scalability than a public blockchain network .
DisadvantagesHybrid blockchains make use of various existing blockchain protocols in order to create a new system that functions better than its individual parts. A hybrid blockchain is still not completely transparent because information can be shielded, which prevents users from being able to see or verify all transactions. Upgrading can also be a challenge, and there is no incentive for users to participate or contribute to the network.
Consortium BlockChain
Consortium blockchain is a type of blockchain that has multiple organisational members collaborating on a decentralised network. It still maintains private and public blockchain features, but it solves the risks that come with just one entity controlling the network on a private blockchain.
This article briefly describes the four main types of blockchain. There are also consensus algorithms available, which will be discussed later in this post. Understanding how these different types of blockchains work and what they mean for you can help you decide how to proceed with your own blockchain project.
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