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A Blockchain has different use cases and relying upon the application, the sort of Blockchain that will be required or can be utilized may change.
Public - Everyone has access to this Blockchain. Anyone can transact, mine,
and make changes to it.
Eg: Bitcoin, Ethereum
Private - Not everyone can have access to this Blockchain. Not everyone can read, write or make transactions or operations to this Blockchain.
Eg: Hyperledger, R3 Corda
Hybrid - A Combination of Public and Private Blockchain. Provides flexibility and scalability.
Consortium - It is a semi-decentralized type of blockchain where a blockchain network is managed by more than one organization and also a combination of Public and Private Blockchain.
What Are The Different Types Of Blockchain Technology?
Do you want to know about the different types of blockchain? This guide will focus on each type and help you realize which one is best suited for your blockchain project.
There is no uncertainty that blockchain has advanced a great deal somewhat recently. It began with bitcoin, which offered public blockchain — the main kind of blockchain. We can likewise term bitcoin's blockchain as the original of blockchain innovation.
At this moment, we are at a point where there are various sorts of blockchain innovations – every single one of them fills its need and tackles a specific or a bunch of issues. All the more along these lines, numerous organizations are utilizing them in their organization to use the advantages as much they can.
Why Do We Need Different Types of Blockchain?
Before we do an actual discussion of blockchain types, let’s learn why we need them in the first place.
When blockchain technology was introduced to the world, it was a public blockchain type with cryptocurrency use-case. It is really hard to understand the intent of its creator, but in general, it provided the concept of decentralized ledger technology (DLT).
The DLT concept changed how we solve things around us. It gave organizations the ability to work without depending on a centralized entity.
Distributed technology solves the drawbacks of centralization, but in itself brought a lot of other problems to solve when it comes to applying blockchain technology to different scenarios.
For instance, bitcoin used an inefficient consensus algorithm, Proof-of-Work. It required the nodes to solve mathematical calculations using energy.
Initially, it was not a problem, but as soon as the difficulty increased, the time and energy required to solve those mathematical equations also increased. This inefficiency makes it not suitable for any system that needs to stay efficient no matter what.
For example, banks deal with a lot of transactions every day. So, this blockchain type is just not suitable for it.
There were other problems associated with the first generation of blockchain, including scalability, no automation, and so on. Anyhow, you can use the article as a type of blockchain technology pdf when in need.
A Different Viewpoint on The Issue
Presently, we should take an alternate attitude toward the issue. Not every person, including associations, can utilize a public blockchain. This is on the grounds that they can't disclose each part of their business. They do have some basic information that makes their business fruitful. In the event that it gets public, there will be contenders utilizing it.
To address the said use-cases, private or united blockchain appeared. Private blockchains offer a totally private climate where the association chooses who takes an interest in it. This permits them to exploit blockchain highlights without the need to unveil everything.
To summarize, we have the following –
- The first-generation blockchain had multiple drawbacks, including efficiency and scalability.
- Also, it is a public blockchain that doesn’t suit everyone’s agenda or needs.
These two reasons can be seen as the cornerstone of advancement in the different types of blockchain technology.
Different Types of Blockchain Technology
At a glance, there are four different major types of blockchain technologies. They include the following.
- Public
- Private
- Hybrid
- Federated
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