There are various types of blockchains, each with its own characteristics and design principles. Here are four commonly recognized types of blockchains:
Public blockchains are open and permissionless, allowing anyone to join the network, participate in the consensus process, and validate transactions. Examples of public blockchain networks include Bitcoin and Ethereum. Public blockchains rely on decentralized consensus mechanisms, such as Proof of Work (PoW) or Proof of Stake (PoS), to achieve agreement on the state of the network. They are highly transparent and provide a high degree of security and decentralization but can be slower and have scalability challenges.
Private blockchains, also known as permissioned blockchains, restrict access to a specific group of participants (like business partners and stakeholders) who are granted permission to join the network. Private blockchains are usually used where privacy and control over the data are needed the most.
Hybrid blockchains combine the features of public and private blockchains. They leverage the strengths of both models to create a flexible and adaptable blockchain infrastructure. Hybrid blockchains enable public-facing components where data can be stored in a decentralized manner, while also allowing for private or permissioned elements where certain transactions or data can be restricted to specific participants. These blockchains are suitable for applications that require both public transparency and private control over sensitive information.
Consortium blockchains are a hybrid between public and private blockchains. In a consortium blockchain, the consensus process is controlled by a pre-selected group of nodes, usually organizations or institutions, rather than being open to the public. Consortium blockchains offer more scalability and faster transaction processing compared to public blockchains, while still maintaining a level of decentralization among the trusted participants.
Combination of Public and Private
Some part is public and some part is private
Open to the public and not owned by anyone
Open to some authorized users only
Open to authorized users and others.
More than one organization manages the blockchain
Anyone can participate in the decision-making process
Selected Authorized users only
Permitted users only
All the involved organizations within the ecosystem can participate in the process
Decentralized network and is accessible to all the permitted participants.
Faster than Public Network
Choosing the right type of blockchain is crucial while developing a blockchain network for your enterprise. So it is important to thoroughly evaluate each option’s benefits and limitations before making an informed decision. Still confused? Get in touch with BSEtec, for a free blockchain consultation.
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