Blockchain

A blockchain is a decentralized, distributed and public digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network.

The basic application of the blockchain is to perform transactions in a secure network. That’s why people use blockchain and ledger technology in different scenarios. One can set up multichain to prevent unauthorized access to sensitive data. It is not available to the public, and can only be available to authorized entities in the organization. It depends on the organization which type it requires to choose for their work.

By using blockchain we can track orders and payments from end to end.

Types of Blockchain

There are 4 types of blockchain:

  • Public Blockchain.
  • Private Blockchain.
  • Hybrid Blockchain.
  • Consortium Blockchain.

Let’s discuss each of these topics in detail.

1. Public Blockchain

These blockchains are completely open to following the idea of decentralization. They don’t have any restrictions, anyone having a computer and internet can participate in the network.

  • As the name is public this blockchain is open to the public, which means it is not owned by anyone.
  • Anyone having internet and a computer with good hardware can participate in this public blockchain.
  • All the computer in the network hold the copy of other nodes or block present in the network
  • In this public blockchain, we can also perform verification of transactions or records

2. Private Blockchain

These blockchains are not as decentralized as the public blockchain only selected nodes can participate in the process, making it more secure than the others.

  • These are not as open as a public blockchain.
  • They are open to some authorized users only.
  • These blockchains are operated in a closed network.
  • In this few people are allowed to participate in a network within a company/organization.

3. Hybrid Blockchain

It is the mixed content of the private and public blockchain, where some part is controlled by some organization and other makes are made visible as a public blockchain.

  • It is a combination of both public and private blockchain.
  • Permission-based and permissionless systems are used.
  • User access information via smart contracts
  • Even a primary entity owns a hybrid blockchain it cannot alter the transaction

4. Consortium Blockchain

It is a creative approach that solves the needs of the organization. This blockchain validates the transaction and also initiates or receives transactions.

  • Also known as Federated Blockchain.
  • This is an innovative method to solve the organization’s needs.
  • Some part is public and some part is private.
  • In this type, more than one organization manages the blockchain.

Bitcoin is a cryptocurrency, while blockchain is a distributed database. Bitcoin is powered by blockchain technology, but blockchain has found many uses beyond Bitcoin. Bitcoin promotes anonymity, while blockchain is about transparency.

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