When most people think of type of blockchain, they likely think of public blockchains like Bitcoin or other cryptocurrencies. However, blockchain technology has the potential to revolutionize industries beyond just finance. People consider the ability to customize blockchain technology to suit different needs and use cases, including creating private blockchains for enterprise applications, developing hybrid blockchains for combining the benefits of public and private blockchains, and forming consortium blockchains for collaborative networks between multiple organizations, as one of its most important aspects.
This article will explore the different type of blockchain available and how they can be applied in various industries. From public and private blockchains to consortium and hybrid blockchains, we will delve into the many faces of blockchain technology and its potential to change the way we do business.
Public Blockchain
Anyone is welcome to join and participate in public blockchains, which are decentralised networks. They are called “public” because they allow anyone who wants to take part in the consensus procedure, used to verify transactions and add them to the blockchain.
Bitcoin and Ethereum are two instances of public blockchains.Volunteers in a decentralised network validate transactions and add them to the blockchain while protecting these networks with cryptography.
Public blockchains provide a level of security and decentralisation that is not feasible with centralised systems because they are open and decentralised. In contrast to private or consortium blockchains, which are more centralised and controlled, they may also be slower and less effective.
Private Blockchain
This type of blockchain require authorization from Centralised networks to join. Organisations frequently employ them to boost productivity and security.
A single organisation or group of organisations often creates and maintains private blockchains. The network has a closed access policy, and users need permission to join. Private blockchains can be faster and more effective than public blockchains because of this concentration, but they also lack the transparency and security that come with decentralisation.
When parties desire to keep the specifics of their transactions private, such as in the banking or healthcare sectors, private blockchains are frequently employed. They can also be applied to organise an organization’s internal procedures.
Few examples of this type of blockchain are:
JPMorgan’s Quorum
The bank created a private blockchain for business transactions, built on top of the Ethereum network, to be faster and more secure than the open Ethereum network.
Corda
The R3 consortium, a collection of more than 200 financial institutions, established this private blockchain platform. The creators expressly designed it for use in the financial sector, with the aim of increasing efficiency and lowering the cost of financial transactions.
Hyperledger Fabric
The Linux Foundation created the open-source private blockchain platform known as Hyperledger Fabric. Since it’s intended for usage in a range of industries, organizations can modify it to meet their specific requirements.
Hybrid Blockchain
We refer to a blockchain that combines the advantages of both public and private blockchains as a hybrid blockchain. Selective disclosure is possible, and network participation is within your control.
A hybrid blockchain has both closed and centralised and open and decentralised portions of the network. This keeps the openness and security of a decentralised system while allowing organisations to maintain control over some areas of the network.
When a company wants to release some data openly but needs to keep some data secret, hybrid blockchains can be helpful. A hybrid blockchain, for instance, may be used by a government to securely store and distribute public records while still keeping control over private information.
As a whole, hybrid blockchains provide a compromise between the control and efficiency of private blockchains and the transparency and security of public blockchains.
A few examples of hybrid blockchains are as follows:
Dragonchain
A hybrid blockchain technology called Dragonchain was first created by Disney. Businesses can create their own blockchains by choosing which portions of the network they want to keep open and decentralised, and which portions they want to restrict and centralise.
Wanchain
This hybrid blockchain platform enables asset transfers between several blockchains. It combines the privacy and control of a private blockchain with the security and openness of a public blockchain.
Consortium Blockchain
Consortium blockchain refers to a blockchain that multiple organizations operate. Each member organization considers itself as a participant and chooses to take part in the consensus process to validate transactions within the consortium blockchain.
This contrasts with a private blockchain, which is solely accessible to a single business, and a public blockchain, which allows anybody to participate. Several organizations use consortium blockchains when they want to collaborate and share data while maintaining control over data access.
A consortium of banks and financial organizations operates the Batavia network, which is an example of a consortium blockchain.The Batavia network is a blockchain-based platform for trade finance that aims to enhance and streamline trade finance procedures. IBM and other significant banks, including UBS and Deutsche Bank, are part of the partnership that created the Batavia network.
Final Thoughts
In conclusion, exploring the diverse landscape of blockchain technology reveals two prominent types: public and private blockchains. Each serves a distinct purpose, with public blockchains offering decentralized transparency and security, while private blockchains prioritize controlled access and efficiency. To delve deeper into the realm of blockchain applications, particularly in the realm of secure payments, consider exploring the innovative solutions provided by blockchain payments platforms like Blockchain Payments. Such platforms exemplify the real-world potential of blockchain technology in revolutionizing financial transactions.