4 Major Types of Blockchain

Do you think that blockchain is limited to basic concepts only? Of course not. There are total of four major types. In the last years, blockchain has transformed to great extent. At first, its application started with bitcoin that was a public blockchain or get More information here.

Each type of blockchain has a specific purpose and resolves particular problems. They are used for improving the businesses. The detail of four types of blockchain are given below.

Scroll down to learn about each blockchain type, benefit, and decide which one suits you well.

Purpose of Different Types of Blockchain

It is crucial to know the purpose of these 4 types of blockchain. As discussed above that the first type of blockchain technology has cryptocurrency usage. With time, this concept has evolved and introduced different solutions to the problems around us. Besides, it has provided organizations with a new way to work based on a centralized entity.

However, distributed technology brings more benefits and overcomes the shortcomings of centralization. In addition, it solves multiple problems in various situations.

1.      Public blockchain

A public blockchain has increased distributed ledger technology and popularized its further applications like bitcoin. In general, DLT stores information in multiple locations across various networks. Moreover, it shares an open-source nature, and you can verify codes and make necessary changes.

Another benefit is it has independent nature and offers network transparency. Blockchain has wide application in mining and exchanging cryptocurrencies like bitcoin and tends to prepare a fixed record of the auditable chain.

Advantages of Public Blockchain

It has several advantages like it is entirely independent of organizations. It is interesting to know that if any organization finishes its setup; its public blockchain network will still be running until computers have a connection in it.

2.      Private Blockchain

A private blockchain is a network that works on a small scale in control of a single entity. It shares one similarity to public blockchain: it uses peer-to-peer connection and decentralization processes. In other words, private blockchain has another famous name: permission or enterprise blockchain.

It has a solid controlling unit that creates a setup for authorizations, accessibility, permission levels, and security. In addition, it has a faster and quicker system of transactions compared to the public blockchain network. It is a perfect solution for working faster and is cryptographically safe. It has several other uses, including internal voting processes, asset ownership, and chain management.

Advantages

It is the unparalleled level of blockchain type in terms of security, permission level, accessibility, and authorization. It enables organizations to set up a private blockchain network that regulates the change in data. Excitingly, it protects the data from third-party access. No one can access information stored in it since they have a limited size to work faster and quicker.

3.      Hybrid Blockchain

It is certain that every new type is better than the previous ones and offers more benefits. Hybrid blockchain is the third type of blockchain which forms combination between private and public blockchains. Organizations can set up a private and permission-based system similar to a public open-source system through this system.

It also offers users complete access to the network. It allows organizations to control and help them categorize data that they want to keep private and what they want to show in public.  Many companies prefer to use a hybrid blockchain system to run things with confidentiality. Real estate and retail industries primarily utilize this hybrid model to rationalize their processes.

Advantages

Shielding hackers attack on the complete network is one of the most useful advantages of it. It also ensures privacy and enhances communication ability with third parties. In addition, this type makes transactions inexpensive and fast and offers more accessibility than a public blockchain network.

4.      Consortium Blockchain

Many organizations work together on a decentralized network to make consortium blockchains of this type. It offers limited access to a specific group and reduces single-unit control risks.

If we compare public blockchain to consortium blockchain, consortium type provides more efficient, assessable, and secure results. Sectors like banking, food and medical supply chains, and research organizations often prefer to use this type.

Advantages

Its top benefits are that it is more efficient, easily accessible, and secure than a public blockchain network. Its access control capacity is similar to private and hybrid blockchain.

Bottom Line

Overall, each blockchain type discussed above has unique features with multiple advantages and practical benefits to businesses. But blockchain is most useful for the industries for yielding profits in businesses.