Blockchain is an ever-growing list of digital data records. So what is the meaning of blockchain exactly and what are the different types of blockchains? If you want to find out about those, please read the article below.
What is the meaning of blockchain?
A blockchain is a system of recording information that makes it difficult or impossible to change, hack, or defraud a system. A blockchain is essentially a digital ledger of transactions, replicated and distributed across a network of computer systems on the blockchain. Each block in the chain contains many transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to each participant's ledger. Decentralized databases managed by multiple participants are called distributed ledger technology (DLT).
Blockchains like Bitcoin and Ethereum continue to grow as blocks are added to the chain, which greatly increases the security of the ledger.
What are the different types of blockchains?
There are four types of blockchains:
Public Blockchain
These blockchains can fully follow the concept of decentralization. They have no restrictions and anyone with a computer and internet can participate in the network.
- Since the name is public, the blockchain is open to the public, which means it doesn't belong to anyone.
- Anyone with an internet and a computer with good hardware can participate in this public blockchain.
- All computers in the network hold copies of other nodes or blocks that exist in the network
- In this public blockchain, we can also verify transactions or records
Private Blockchain
These blockchains are not as decentralized as public blockchains, only selected nodes can participate in the process, making them more secure than other blockchains.
- These are not as open as public blockchains.
- They are only available to certain authorized users.
- These blockchains operate in a closed network.
- In this regard, few people are allowed to participate in the network within the company/organization.
Hybrid Blockchain
It is a mix of private and public blockchains, with some parts controlled by an organization and other brands visible as a public blockchain.
- It is a combination of public and private blockchains.
- Use permission-based and permissionless systems.
- Users access information through smart contracts
- Even if the primary entity owns the hybrid blockchain, it cannot change transactions
Consortium Blockchain
It's a creative approach to addressing organizational needs. This blockchain verifies transactions and initiates or receives them.
- Also known as federated blockchain.
- This is an innovative approach to addressing organizational needs.
- Some parts are public and some parts are private.
- In this type, more than one organization manages the blockchain.
I believe now you will understand what is the meaning of block chain and the different types of blockchains. Blockchain technology can also be adapted and implemented in other activities such as healthcare, insurance, supply chain, IoT, etc.
