Blockchain technology lies at the core of cryptocurrency. A blockchain consists of various blocks which contain data. Blockchain allows the information stored to be used and archived for later use. Blockchain technology has many advantages due to which different other sectors are also using it for their benefit. Users can use this system to carry on important transactions.
There are different kinds of blockchains, each of which has a separate set of uses. The features differ, and so do their pros and cons. Let us look into them.
The four types of blockchain are:
- Public Blockchain – The basic form of blockchain that exists is the public blockchain. Bitcoin and other such cryptocurrencies originated on this platform. People can enter a public blockchain and use it for many activities. This space is used for mining bitcoin and adds them to the ledger. A public blockchain is not restrictive, and one does not require permission to enter the network. Public Blockchains are the most common time that can help in recording and maintaining a ledger for crucial information.
Anybody can use the network and report bugs or propose something new. Public blockchains can provide transparent information. However, the disadvantage with public blockchain is that if a hacker gets control of 51% of the network, there are chances that they can alter the information. Visit this website works as a public blockchain that people can use to start their crypto experience.
- Private Blockchain – How personal blockchains work is similar to that of a public blockchain. However, as the name suggests, a private blockchain uses restrictions and implements them among the users. Private blockchains function on a smaller scale than public blockchains, among fewer users. While everybody can use public blockchains, private blockchains need permission. Most of the time, organizations and companies use private blockchains to operate within their structure. One of the most significant advantages of using a private blockchain is the increased security. Restrictions help in filtering unwanted and illegitimate users from entering the blockchain.
There are few numbers of people who can use a private blockchain. Because of this, the operations that take place within are faster than those in a public blockchain. However, enthusiasts have also called private blockchains inauthentic. The reason behind this is that the core idea of blockchain technology is decentralization. In a private network, that is not the case.
- Hybrid Blockchain: A hybrid blockchain is the most useful. It has features from both public and private blockchains. The system allows one to implement restrictions on the entry of users and their participation. Along with that, these networks can be accessed by all, just like a public blockchain. But, unauthorized users will need to gain access to the server through intelligent contracts.
Many companies and organizations use hybrid blockchain to set up a private circle. All critical and sensitive information regarding transactions is in the network. Users who are authorized can use it along with people who want to be a part of it.
The main advantage of this system is that one can enjoy the best of both the previous blockchains. Because of the security of these networks, hackers can never gain more than 51% access to the blockchain. But, in a hybrid blockchain, the information available can be flawed or false because it is not a completely transparent system.
- Consortium Blockchain: In this type of blockchain, several organizations can collaborate and work together. A consortium blockchain has all the features of both a public and a private blockchain. The presence of a decentralized network in a consortium blockchain makes it more secure and trustworthy. There are preset nodes in this type of blockchain, which help control the consensus within the network.
Other nodes present can receive and deal with transactional information. One of the advantages of a consortium blockchain is that it is much more secure than different kinds because the procedures are transparent. Decentralization makes it even safer to use.
Each kind of blockchain has its set of pros and cons. However, the point of origin for all sorts of crypto-related activity lies in the public blockchain. It is the network that people use when they start with mining or dealing with bitcoin. To better understand the intricacies of each kind of structure, one has to use them in the first place.