The word blockchain is Mystical, as blockchain owes its name to the way it stores transaction data—in blocks linked together to form a chain. Aware that blockchaincan be used in healthcare, logistics, education, supply chain, government and other industries. But need more information about its types and other features? Well, you are at the right place. Here is a brief blog post on blockchain networks, their differences and how they work.
Important components of a blockchain
A blockchain network consists of nodes, a distributed ledger, an asset, and a consensus algorithm.
As of 2023, there are over 1,000blockchainsin today’s landscape, catering to a wide range of industries and applications. These blockchainscan be categorized into four major types: public, private, consortium, and permission. But what are the main figures of Public and private blockchains? Each different type of blockchain network has distinct characteristics and functionalities.
Public blockchains are open and permissionless networks where anyone can participate and validate transactions.
Simpler: sharing of Google sheet link as anyone with the link can access
Private blockchains, also known as permissioned blockchains, are restricted networks where only selected participants are allowed to join and validate transactions.
Simpler: Google sheet access is mentioned to specific email IDs.
Decentralized, meaning no single entity has control over the network
Networks are often operated by a single organization or consortium, providing more control and privacy.
Secured through mechanisms like Proof of Work (PoW) or Proof of Stake (PoS), where participants compete to validate transactions and create new blocks.
It makes use of consensus mechanisms like Practical Byzantine Fault Tolerance (PBFT) or Proof of Authority (PoA) to validate transactions.
Examples of public blockchains include Bitcoin and Ethereum.
Examples of private blockchains include Hyperledger Fabric, Ripple, Stellar R3 Corda and so on.
Example of a public blockchain
Bitcoin is a public blockchainthat allows anyone to participate in the network, verify transactions, and mine new blocks. Anyone can create a Bitcoinwallet https://bitcoin.org/en/wallets or in any wallet link you prefer,
Choose the type of wallet that works best for you.
Sign up for an account, buy the device or download the software needed.
Set up your security features, including a recovery phrase.
Purchase cryptocurrency or transfer coins from another wallet or exchange.
and participate in the network without any central authority controlling the transactions as it is decentralized and operates on a proof-of-work consensus mechanism. Looking around to create a blockchain walletor any queries? Contact BSEtec + 91 9677717033 as choosing a publicblockchainmatch with name terms in public “open to all” ensures Bitcointransparency, immutability, and security, making it suitable for applications like peer-to-peer transactions and decentralized finance.
Example of a Private Blockchain
Hyperledger is a private blockchainframework developed by the Linux Foundation. It is designed for enterprise use cases and allows organizations to create their own blockchain networkswith controlled access and permissions. To know more about Hyperledgerdo visit https://www.bsetec.com/hyperledger-fabric unlike Bitcoin, Hyperledger is permissioned, meaning that participants in the network are known and trusted entities Implementation of privateblockchain allows the organizations to maintain privacy, restrict access, and control the consensus mechanism. Hyperledger offers various tools and modules that enable enterprises to build and deploy their blockchainapplications.
Few applications that inherit hybrid approaches like NFT (Non-Fungible Tokens)can exist on both public and private blockchains. Ethereum. The most widely usedblockchainfor NFTs is Ethereum, Solana, Cardano, BNB Smart Chain (BSC)Polygon, AVAX and so on.
Public blockchains can provide transparency and traceability in supply chain processes, ensuring authenticity and reducing fraud.
Public blockchains can be used for secure and transparent voting systems, ensuring trust and eliminating manipulation.
Public blockchainscan be utilized to prove ownership and protectintellectual property rights.
Public blockchains provide a platform for the development and deployment of decentralized applications (DApps)across various industries.
Private blockchainsare used by banks and financial institutions to streamline processes, facilitate secure transactions, and reduce cost.
Private blockchains can be used to securely store and share patient data, ensuring privacy and interoperability among healthcare providers.
Private blockchains can be employed by companies to enhance supply chain efficiency, track inventory, and improve logistics.
Private blockchains can be used by governmentsfor identity management, land registry, and secure document storage.
Private blockchains can facilitate peer-to-peer energy trading, grid management, and tracking renewable energy certificates.
It’s important to note that blockchainsare safe and illustrate the distinction between public and private blockchains may give you an outline but some industries benefit from ahybridapproach that combines elements of both Unclear? Don’t get confused in choosing the right blockchain, public or private. Consult BSEtec, a leadingblockchain development company, guides you in blockchain networksdepending on the specific use case, requirements, and desired level of business.
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