If you’re spending a lot of time in much of the business world, you’ve noticed blockchain has been huge in the past few years.
Many experts think that the technology underpinning blockchain will be as revolutionary as the internet has been over the past few decades.
However, there are hundreds of different types of blockchains. Learning about the differences between them can help you become familiar with the technology.
So today, we’re going to take a look at the main types of blockchains. That way, you can make good investments and better decisions.
A public blockchain is known as a decentralized and distributed digital ledger. The ledger is for recording transactions across a vast number of computers.
This is so that the record can’t be altered retroactively. The purpose is to avoid alteration of every subsequent block and the collusion of the blockchain network.
Bitcoin is an example of a public blockchain. Public blockchains are “permission-less”, meaning that anyone can become a node in the network and help to validate and relay transactions. Block rewards incentivize nodes, or so-called “miners”, to participate in the public blockchain.
When talking about public blockchain, there’s where open blockchain architecture comes in. You may also view here for more discussions.
A private blockchain is a blockchain where the read and write permissions are kept within a group of people. A private blockchain is usually used within a company or organization and is not available to the general public.
Private blockchains are more secure than public blockchains because they are not as easily hacked.
A blockchain consortium is a type of blockchain technology that is implemented and used by a group of organizations. Its main purpose is to provide a secure and efficient way for these organizations to share data and information.
Consortium blockchains are permissioned, meaning that only authorized members can access and participate in the network. This blockchain is considered to be more efficient and secure than public blockchains, which are open to everyone.
A hybrid blockchain combines the features of a public and a private blockchain. A hybrid blockchain is permissioned. This means that it requires an invitation or permission to join.
A hybrid blockchain can be either partially or fully decentralized. What comes best of a hybrid blockchain is that it allows for the creation of private blockchains that are compatible with public blockchains.
This combines the best characteristics and features of both; the security of a private blockchain with the flexibility of a public blockchain.
Know Which Types of Blockchains to Get Into
There are different types of blockchains, each with its own benefits and drawbacks. You need to know which ones are right for you before getting involved. Otherwise, you could end up on the wrong side of the investment.
Do your research and get into the right type of blockchain for you. And if you want to read more informative resources, visit our main blog section.