Ashutosh Kumar June 18, 2020 0
What are the different types of Blockchain?
What are the different types of Blockchain? In this article, we will learn about different types of blockchain, their usage, their examples, and their differences.
Primarily there are three different types of Blockchain:
Private Blockchain, also known as Permissioned Blockchain
Public Blockchain, also known as Permissionless Blockchain
Consortium Blockchain, also known as Federated Blockchain
Types Of Blockchain:
Private Blockchain can be considered as a private property of an individual or organization. In a private Blockchain, the access or permissions are kept centralized to one organization which means that their sensitive business data will not be visible publicly. The controls are restricted to a group of participants to ensure proper governance over data. Private Blockchain is mainly used for managing and auditing databases that are private to that particular organization or business and require data privacy and security. The permissions to access the data are given only to a group of participants thus, maintaining data privacy. It is also known as Permissioned Blockchain. Examples of private Blockchain include MONAX, Multichain, Ripple, Hyperledger, etc.
Public Blockchain is an open-source platform where anyone can participate without permission. In a public Blockchain, the transaction taking place are fully transparent meaning anyone can download the code and run a public node on their local servers, validate and examine the transactions in the network. Public Blockchain is a fully decentralized platform that can send transactions through the network and expect them to be included in the Blockchain with no entity or group controlling them. All the transactions taking place in a Public Blockchain are transparent and hence, anyone can track these transactions. It is also known as Permissionless Blockchain. One of the primary benefits of using a Permissionless Blockchain is that it incurs no infrastructure costs as there is no need to maintain servers for creating or running decentralized apps. Examples of Public Blockchain include Bitcoin, Ethereum, Litecoin, Dogecoin, Monero, Dash cryptocurrency, etc. These cryptocurrencies can be viewed and used publicly.
Consortium Blockchain also, known as Federated Blockchain is the one that is governed under the leadership of a group, unlike private blockchain which is governed by a single entity. Here, a group of companies, organizations, or representative individuals collab and make decisions for the benefit of the business network. Consortium Blockchains are mostly used by the banking sector, government, and supply chain network. For example, let’s suppose there is a federation of 15 financial institutions, and each institution operates a node, so 10 nodes must sign every block in order for the block to be valid. Here the consensus process is controlled by these pre-selected sets of nodes and it can also be considered as a sub-category of private blockchains. Examples of Consortium Blockchain include R3 (banks), EWF (energy), Corda, Quorum, Hyperledger, etc.