What Are Four Different Types Of Blockchains? The four main types of blockchain networks: public blockchains, private blockchains, consortium blockchains and hybrid blockchains.
What Are Four Different Types Of Blockchains?
Public blockchain
The first type of blockchain technology is public blockchain. Anyone with internet access can join up to a blockchain platform to become an authorized node because public blockchain is open and permissionless. This person has access to both recent and old data, and they can perform mining operations—complex calculations necessary to confirm transactions and add them to the ledger. On the network, no valid record or transaction can be changed, and because the source code is typically open source, anyone can verify the transactions, look for errors, and suggest fixes.
Private blockchain
A private blockchain is a blockchain network that operates in a restricted setting, such as a closed network, or that is governed by a single institution. While it operates like a public blockchain network in the sense that it uses peer-to-peer connections and decentralization, this type of blockchain is on a much smaller scale. Instead of just anyone being able to join and provide computing power, private blockchains typically are operated on a small network inside a company or organization. They're also known as permission blockchains or enterprise blockchains.
Hybrid blockchain
Hybrid blockchain is a type of blockchain technology that includes aspects of both public and private blockchain. It enables businesses to set up both a private, permission-based system and a public permissionless system, giving them control over which data is made available to the public and who has access to it.
In a hybrid blockchain, transactions and records are typically private but can be verified as necessary, for example by granting access via a smart contract. Although protected inside the network, confidential information can still be verified. The hybrid blockchain may be owned by a private organization, but it cannot change transactions.
An individual who joins a hybrid blockchain has complete access to the network. The user's identity is protected from other users, unless they engage in a transaction. Then, their identity is revealed to the other party.
Consortium blockchain
The fourth type of blockchain, consortium blockchain, also known as a federated blockchain, is similar to a hybrid blockchain in that it has private and public blockchain features. However, it differs in that a decentralized network is used in collaboration by numerous organizational members. A consortium blockchain essentially functions as a private blockchain with restricted access to a certain group, removing the risks associated with having just one entity control the network on a private blockchain.
The consensus processes in a consortium blockchain are managed by predetermined nodes. It has a validator node that performs transaction initiation, receipt, and validation. Member nodes can receive or initiate transactions.
What Are Four Different Types Of Blockchains? - Hopefully, this article can help you to get some knowledge.
