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Types of Blockchain
Learn about the different types of Blockchains: Public Blockchain, Private Blockchain, Consortium Blockchain or Federated Blockchain, and Hybrid Blockchain.
Submitted by Vaishnavi Srivastava, on January 07, 2022
Introduced in 1990, and evolving ever since blockchain technology proves to be one of the fastest-growing technologies. The security, reliability, ease of use and access, and decentralization offered by blockchain are some of the prominent reasons that it is ruling the market so effortlessly.
However, there are certain types of Blockchain Technology. Now you must think what is the need for different types of blockchain technology. The need to modify blockchains to work in diverse industries led to the creation of several blockchain types. It's also designed to meet the needs of blockchain applications, as well as coding requirements for the various types of blockchain platforms available, thus a need for different types of blockchain.
Different types of Blockchains are,
- Public Blockchain
- Private Blockchain
- Consortium Blockchain or Federated Blockchain
- Hybrid Blockchain
1) Public Blockchain
A public blockchain is decentralized, meaning it is not controlled by a single entity. Permission is not required for a public blockchain. Anyone can join the blockchain network and read, write, or participate in it. There are no limits on a public blockchain. Anyone with a computer and an internet connection can join the network and begin validating blocks and sending transactions. In most cases, such networks provide some sort of incentive to users who validate the blocks.
In any case, this network validates transactions using Proof of Work or Proof of Stake consensus techniques. In the truest sense, it is a "public" network.
2) Private Blockchain
A permissioned blockchain is a private blockchain. Access restrictions limit the number of people who can engage in a private blockchain network. The mining process and consensus method are controlled by a private group that develops and maintains a private blockchain. Who can join the network and download the nodes is decided by the private organization? However, it partially decentralizes the technology.
3) Consortium Blockchain or Federated Blockchain
Federated blockchains or blockchain consortiums combine the best of both worlds. It's comparable to a private blockchain, but there are some key differences.
Federated blockchain examples will reduce the network's reliance on a single company. Meaning, that the network will be used by multiple entities, re-establishing a decentralized structure.
As a result, rather than having a single organization in charge, multiple organizations will be able to benefit from the network. Consider it a hub where multiple organizations can share information and collaborate at the same time. Any consumer will be able to speed accelerate any work that needs numerous companies in this manner.
4) Hybrid Blockchain
A hybrid blockchain is a unique sort of blockchain technology that combines elements of both public and private blockchains or strives to use the best of both.
The hybrid blockchain aims to combine the finest features of both private and public blockchains. In an ideal scenario, a hybrid blockchain would provide both controlled access and freedom. The hybrid blockchain architecture differs from other blockchain architectures in that it is not open to everyone but still provides blockchain benefits such as integrity, transparency, and security.
Hybrid blockchain architecture, like all blockchain architecture, is completely customizable. Members of the hybrid blockchain can choose who can join the blockchain and which transactions are made public. This combines the best of both worlds.