Explore the Flavors of Blockchain: A Guide to Blockchain Networks types

What are the many forms of blockchain? Do you switch back and forth between public, private, and federated blockchains? This article includes an overview of blockchain technology as well as a detailed analysis of several blockchains. So let us begin.

What is Blockchain technology?

Blockchain is based on a peer-to-peer topology that allows data to be stored globally on millions of servers. In contrast to traditional banks, which rely on middlemen, it is often referred to as P2P, decentralized, distributed ledger technology. Blockchain provides more security, transparency, and immutability, which is why it is now the most debated technology. The technology is attracting blockchain developers and blockchain specialists owing to its potential to alter the way industries and enterprises operate. 

Why Do We Need Different Kinds of Blockchain?

To conduct transactions or data transfers across a secure network. The way individuals utilize Blockchain and distributed ledger technologies or networks, on the other hand, varies depending on the scenario. Bitcoin, for example, is a digital cryptocurrency that is transacted utilizing Blockchain and DLT technologies. Because anybody from anywhere in the globe may become a node, verify other nodes, and exchange bitcoins, this type of blockchain network is referred to as a public network. Assume a bank, on the other hand, is employing a private blockchain network. The network, which will be password-protected, will be available only to individuals who have been approved by the bank. As a result, bank data is only accessible within the local network. Now, without further ado, let's learn about the many types of blockchains.

Different types of Blockchain

Blockchains are classified into three categories based on their application and requirements: public, private, and consortium (also known as federated). Each of these blockchain networks serves a specific purpose and addresses a specific problem, and each has its own set of features and benefits over the others. Let us begin with the most well-known blockchain, namely the public blockchain.

Public Blockchain : Public Blockchain is a permissionless, non-restrictive distributed ledger system, which implies that anybody with an internet connection can join a blockchain network and become a part of it. The primary applications of such blockchain are cryptocurrency exchange and mining. Furthermore, it maintains trust throughout the whole community of users since everyone in the network feels encouraged to participate for the betterment of the public network. The first example of such a blockchain is Bitcoin, which allowed anybody to conduct transactions. Litecoin and Ethereum are two further instances of public blockchains.

Merits:

    - Completely dependable and open

    - Secured 

    - No middlemen

Demerits:

    - Problems with scalability

    - Transactional slowness

    - It requires a lot of energy

Private Blockchain: A private blockchain, as opposed to a public blockchain, is a permissioned and restricted blockchain that works within a closed network. Such blockchain is typically utilized within an organization where only specific members participate in a blockchain network. It is best suited for organizations and businesses who wish to use blockchain solely for internal purposes. The primary distinction between the blockchains is that the public blockchain is widely available, whereas the private blockchain is restricted to a small number of people. Furthermore, a private blockchain is more centralized because a single authority maintains the network. The Private blockchain examples include Corda, Hyperledger Fabric, Hyperledger Sawtooth, and Corda.

Do you want to gain an in-depth practical understanding of blockchain technology? Enroll with the blockchain experts and become one among them right now!

Advantages: 

          - More transactions per second (TPS)

          - Extremely scalable

Drawbacks: 

          - Less secure than public blockchains.

          - Decentralized less

          - It is tough to gain trust

Consortium Blockchain: Consortium blockchain (also known as federated blockchains) is best suited for companies that require both public and private blockchains. In this case, there is more than one center in charge, or more than one organization participating, that offers access to pre-selected nodes for reading, writing, and auditing the blockchain. It retains its decentralized structure since there is no single authority regulating it. Examples include the Energy Web Foundation and IBM Food Trust.

Merits:

           - Best suited for organizational cooperation.

           - Scalability and security are provided.

           - More efficient than public blockchains

           - improved customizability and resource control

Demerits:

           - Less transparent

           - When compared to other blockchains, it is less anonymous.

An Overview of the Differences

Conclusion

Declaring which blockchain is greatest is incorrect since each blockchain has its unique set of features, benefits, applications, and needs. If you work on a public blockchain, you should be well-versed in it. However, if you want to develop and execute your company blockchain, a private blockchain is a one-stop solution. Consortium blockchain, on the other hand, is likely to be of interest to corporations and organizations looking to rapidly expedite communication with one another.

Before deciding on the best blockchain, evaluate your company's requirements as well as the advantages that each blockchain provides. Hopefully, this article will assist you in making a decision and selecting the finest blockchain technology for your organization.