On this session of Introduction to Cryptocurrency, we take a close look at Blockchain Types and Features. This session will cover the types of Blockchain available and their characteristics.
What are the 4 types of blockchain?
Blockchain Types and Features:
Public Blockchain
As the name suggests, a public blockchain is one that is open for general people to be a part of the network or chain. Any individual can be a part of the chain and can access as well as read and write the data that is stored inside the chain. As of security, the data in a public blockchain cannot be altered, since the data once written in the blocks cannot be altered again. Even the ledger can also be viewed by the participating individuals as well.
The network also helps in keeping the identity of the individuals secure as the names or details of the individuals remain anonymous throughout adding to the security in terms of the anonymity feature.
Private Blockchain
Another category in the Blockchain Types and Features, is Private Blockchain. In contrast with the public blockchain technology, a private blockchains do have an administrator in place who acts as an authority to the chain with respect to the participation of the individuals inside the chain. Its only after the permission is granted by the administrator, that an individual can join a private blockchain.
Since the number of users are limited as compared to public ones, the access to the ledger or processing speed of the transactions is significantly higher in a Private Blockchain.
Hybrid Blockchain
As the name suggests, Hybrid Blockchains combine the features of Public and Private Blockchains into one combined form. Depending on the role of an individual, the necessary rights or permissions are provided to the concerned. In such hybrid scenarios, certain information are available for public viewing and few others are available based on the applicable role.
The security of the information held in the chains however are secure in a hybrid scenario, such as this, as more than half of the users don’t have access to the network. Also, the customized nature of the chain, contributes to its popularity.
Consortium Blockchain
Consortium or Federated Blockchains are similar to Hybrid Blockchains to an extent considering the fact that it also has a public and private blockchain network consolidated into one such network. However, this is where the similarity ends. Hybrid ones are partially decentralized, whereas the Federated ones are completely decentralized.
In a Consortium Blockchain, the users are actually categorized into 2 broad groups, one who gets the access and the other who provides the necessary access or permission. Hence, the protection of data is ensured and the time taken to retrieve the same also happens much faster which makes it the most sought-after technology under Blockchain Types and Features.
In the next session Blockchain Types and Features, we delve deeper into the Blockchain Technology as a whole and how the same is executed.
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