Blockchain technology has come a long way since its initiation in 2009. It has been more than a decade that this comparatively new form of peer to peer technology has hit the market. Satoshi Nakamoto is the brainchild of Blockchain, which he used as a transaction ledger for the world’s first cryptocurrency – Bitcoin. Since then, the usages of this technology have become varied.
It gives us no scope of doubt that a shift in Blockchain in major industries to manage operations is real and ever-growing. According to surveys conducted by experts, the various use cases for Blockchain are rising by whopping double-digit percentages in the year 2021.
Presently, there are four major varieties of Blockchain which are as follows:
- Public Blockchain
- Private Blockchain
- Hybrid Blockchain, and
- Consortium Blockchain
The first of its kind, public blockchain gave rise to the concept of DLT or distributed ledger technology. Bitcoin came into being through this particular kind and solved the obstacles that centralisation in market sectors posed.
- Anyone can participate in transactions provided they have active internet accessibility. Once in the network, each peer will have independent access to a copy of the ledger, that they can verify through various consensus methods.
- With transparency and independence, comes problems like issues regarding low transaction speed or problems with scalability. The network turns slow and clumsy when there are many nodes connected.
- Bitcoin, Litecoin and all other cryptocurrencies are the most popular examples of the public blockchain.
Private blockchain works in a closed environment, which means that the access is restricted to a handful of people. Other than this, more or less all the other features of this blockchain are similar to a public one.
- Transaction speed for private blockchain is pretty fast as there are only a select number of nodes in a network. Security levels and permissions can be controlled by the organisation or company.
- The private blockchain is not decentralised as there is no complete open-to-all consensus. Trust and security in the network are rather difficult to establish majorly due to the centralised nodes.
- Maintaining the supply chain or tracking assets are good uses of the private blockchain.
Hybrid blockchain is a middle ground between the previous two types of blockchains. There can be control over certain nodes getting private access and the rest, public.
- Its closed nature offers a good firewall structure. Other than that, transactions are fast and networks hold good speed.
- Certain datas can still be locked up in hybrid blockchains not making it a completely decentralised network.
- Retail industries maximize the benefits offered by hybrid blockchain. Government organizations also use this blockchain to securely store data of people, and at the same time display a part of it publicly.
Nodes from more than one organisation can participate in consortium blockchains. So, it is a private blockchain, but control lies in the hands of more than one exclusive entity.
- The advantages of consortium blockchain are the most balanced. While being more secure than a public blockchain, it gives access to control and good scalability.
- However, the risk of a data breach is always there causing an imbalance in the functioning of the network.
- The banking and payment sectors are making the best use of consortium blockchain, along with research groups who share data using the same.
Gateway to Blockchain Technology
If you are looking for an entry into the Blockchain world, what can be better than starting with cryptocurrencies? The entire idea of cryptocurrency is based on blockchain technology and it rather brings good returns if you try your luck in trading coins. To know more you can check out ethereum-code.me.
Finally, it is important to understand the job that needs to be done by an organisation and then lookout for the best type of blockchain technology to complement it. Last but not the least, the future seems to be heavily influenced by this technology.
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